Yes, you can get a credit card with bad credit, but your options are limited and the terms will be less favorable than cards for people with good credit.

Banks and card issuers do approve people with low credit scores, but they manage their risk by charging higher interest rates, requiring a cash deposit, or both. The cards available to you fall into three categories: secured cards (backed by your own money), unsecured cards for bad credit (higher fees and rates, no deposit), and store cards (easier approval, but only usable at one retailer). Your credit score, recent payment history, and current debt load all factor into whether you get approved and what rate you receive.

The reason to pursue this is practical: a new card, used responsibly, can help rebuild your credit score over time. But the card itself will cost you money in interest and fees if you carry a balance, so the decision depends on whether you need the card for spending you're already doing, or whether you're taking on new debt just to rebuild credit.

Key Takeaways

  • Secured credit cards require a cash deposit (usually $200 to $2,500) that becomes your credit limit, and they report to the three major credit bureaus just like regular cards.
  • Unsecured cards for bad credit typically charge annual fees between $39 and $99 and interest rates between 24% and 36%, so carrying a balance is expensive.
  • Your approval odds improve if you have a recent on-time payment history (even if older accounts are damaged) and if your current debt-to-income ratio is low.
  • Store cards and gas cards often have lower approval standards than bank-issued Visa or Mastercard products, though they only work at that one merchant.
  • Being denied for a card does not hurt your credit score, but the hard inquiry the issuer runs does, so space out applications by at least a few weeks.

How secured cards work and when they make sense

A secured credit card requires you to deposit cash with the card issuer. That deposit becomes your credit limit. If you deposit $500, you get a $500 limit. You then use the card like any other card, make monthly payments, and the issuer reports your payment history to Equifax, Experian, and TransUnion. After 6 to 18 months of on-time payments, many issuers will convert the card to an unsecured card and return your deposit.

The deposit is not a fee — it sits in a savings account at the bank and earns a small amount of interest (usually 0.01% to 0.5% annually, depending on the issuer). You do not lose it unless you default on the card itself, which is rare because the bank can simply take the money from your deposit to cover what you owe.

Secured cards make sense if you have a very low credit score (below 580) or if you have no credit history at all. They also make sense if you were recently denied for an unsecured card. The downside is that you have to have the cash available upfront, and the card may still charge an annual fee ($0 to $95, depending on the issuer). Compare the annual fee, the interest rate, and the timeline to conversion before you choose one.

Unsecured cards for bad credit: higher costs, no deposit required

An unsecured card for bad credit does not require a deposit, but it charges you for the risk. Annual fees typically range from $39 to $99. Interest rates (the APR you pay on any balance you carry) typically range from 24% to 36%. Some cards also charge a processing fee when you open the account, usually $25 to $75.

These cards are issued by banks and fintech companies that specialize in lending to people with damaged credit. They report to all three credit bureaus, so they help rebuild your score the same way a secured card does. The catch is the cost: if you carry a $1,000 balance on a card charging 30% APR, you will pay roughly $300 in interest over a year if you make only minimum payments. That math only works if you are using the card for spending you would do anyway and paying it off in full each month.

Unsecured bad-credit cards are worth considering if you have a credit score above 580 and you need a card for regular purchases. They are not worth it if you are taking on new debt just to rebuild credit — the interest cost outweighs the credit-building benefit.

Store cards and gas cards: easier approval, limited use

Retail stores and gas stations often issue their own credit cards with lower approval standards than bank cards. A store card from Target, Walmart, or a gas station chain may approve you even if a Visa or Mastercard issuer would deny you. The approval process is usually faster (sometimes instant at checkout), and the card works only at that retailer or chain.

Store cards report to the credit bureaus just like bank cards do, so they help rebuild your score. However, they typically charge higher interest rates than unsecured bad-credit cards (sometimes 20% to 29%), and the credit limit is usually lower ($300 to $1,000). Use a store card if you shop at that retailer regularly and you can pay the balance in full each month. Do not open multiple store cards just to rebuild credit — each application triggers a hard inquiry, which temporarily lowers your score.

What lenders look at when you apply with bad credit

Your credit score is not the only thing an issuer considers. They also look at your recent payment history (the last 12 to 24 months), your current debt load, your income, and whether you have any accounts in collections or recent late payments. A low score with recent on-time payments is more approvable than a low score with recent missed payments.

Your debt-to-income ratio — the percentage of your monthly income that goes to debt payments — also matters. If you earn $3,000 a month and your current debt payments total $1,500, your ratio is 50%, which is high and makes approval less likely. If your ratio is below 30%, your odds improve even with a low credit score.

Recent negative events (bankruptcy, foreclosure, charge-off) make approval harder, but they do not make it impossible. A bankruptcy from five years ago is less damaging than one from six months ago. If you have a recent negative event, focus on secured cards or store cards rather than unsecured bank cards.

How hard inquiries affect your credit score when you apply

When you apply for a credit card, the issuer runs a hard inquiry (also called a hard pull) on your credit report. This inquiry appears on your credit report and typically lowers your score by 5 to 10 points. The impact is temporary — the inquiry stops affecting your score after about three months and disappears from your report after two years.

Multiple hard inquiries in a short time (within 14 to 45 days, depending on the scoring model) may count as a single inquiry for credit-scoring purposes, so spacing out applications by at least two to three weeks is safer than applying to multiple cards in one week. Being denied for a card does not hurt your score — only the inquiry does — so you can apply, get denied, and move on without additional damage.

If you are rebuilding credit, minimize the number of applications you submit. One secured card or one unsecured card is enough to start. Once you have on-time payments for six months, you can apply for a second card if you need one.

Steps to improve your odds of approval

Before you apply, check your credit report at annualcreditreport.com (the only free, official source). Look for errors — incorrect late payments, accounts you did not open, or wrong balances. You can dispute errors directly with the credit bureau, and removing them can raise your score by 10 to 100 points depending on what is wrong.

Pay down existing balances if you can. Lowering your credit utilization (the percentage of your available credit you are using) can raise your score. If you have a credit card with a $1,000 limit and a $800 balance, your utilization is 80%. Paying it down to $300 (30% utilization) can improve your score by 10 to 30 points.

Make all payments on time for at least two to three months before you apply. Recent on-time payments matter more than old missed payments, so even if your credit history is damaged, a short streak of on-time payments improves your approval odds. If you have missed payments in the past, do not miss any more — that is the single most important thing you can do.

If you have no credit history at all (no credit cards, no loans, no payment records), consider becoming an authorized user on someone else's credit card account. Their payment history will appear on your credit report, which can help you get approved for your own card. This only works if the account holder has good payment history and low utilization.

Frequently Asked Questions

What credit score do I need to get a credit card?

There is no single minimum score. Secured cards typically approve people with scores below 580. Unsecured bad-credit cards usually require a score of 580 to 669. Store cards often approve people with scores as low as 500 to 550. The best way to know is to check the issuer's website or call their customer service line before you apply.

Will getting denied for a credit card hurt my credit score?

The denial itself does not hurt your score. The hard inquiry the issuer runs does, and it typically lowers your score by 5 to 10 points. The impact is temporary and disappears after about three months. Space out applications by at least two to three weeks to avoid multiple inquiries in a short time.

Can I use a secured card to rebuild my credit if I have a bankruptcy?

Yes. A bankruptcy makes approval harder, but secured cards are designed for people in difficult credit situations. You will likely be approved for a secured card even with a recent bankruptcy. Focus on making on-time payments for at least 12 months, and your score will begin to recover. After 18 to 24 months of on-time payments, you may be able to convert to an unsecured card.

Should I apply for multiple cards at once to increase my chances of approval?

No. Each application triggers a hard inquiry, which lowers your score. Multiple inquiries in a short time can make you look risky to lenders. Apply for one card, wait two to three weeks, and then apply for another if you need one. One card with on-time payments is more valuable for rebuilding credit than multiple cards with scattered payments.

What happens if I cannot pay my secured card balance?

The issuer can take the money from your deposit to cover what you owe. If your deposit is $500 and you owe $600, they will use the $500 and you will still owe $100. That unpaid balance will be reported to the credit bureaus and will damage your score. Treat a secured card like any other card — only charge what you can afford to pay back.