Cards You Can Actually Get With Bad Credit

If your credit score is below 580, most standard credit cards will reject your application. But you have real options: secured credit cards, store cards, and cards designed for people rebuilding credit all exist and will approve applicants with poor credit histories. The catch is that these cards come with higher interest rates, annual fees, or both—and they require you to prove you can manage the account responsibly before you move to a standard card.

The most common path is a secured card, which requires you to deposit cash as collateral. That deposit becomes your credit limit. You use the card like any other, pay your bill on time each month, and after 12 to 24 months of clean payment history, the issuer converts it to a standard card and returns your deposit. Store cards (from retailers like Target or Amazon) often approve people with bad credit because they make money from your purchases, not just from interest. Cards marketed directly to people rebuilding credit exist from issuers like Capital One and Chime, though they carry higher rates and fees than secured cards.

Key Takeaways

  • Secured cards require a cash deposit that becomes your credit limit, and most will convert to standard cards after 12 to 24 months of on-time payments.
  • Store cards and cards marketed to people rebuilding credit approve applicants with bad credit but charge higher interest rates and annual fees than secured options.
  • Your credit score matters less than your recent payment history—cards designed for bad credit focus on whether you have defaulted recently, not your overall score.
  • Every on-time payment on any of these cards reports to the three credit bureaus and improves your score, making you may be able to access for better cards within 12 to 24 months.

How Secured Cards Work and What They Cost

A secured card works like this: you deposit $500 to $2,500 with the card issuer, and that amount becomes your credit limit. You receive a physical card and can use it anywhere Visa or Mastercard is accepted. You pay a monthly bill just like a standard card, and interest accrues on any balance you carry. After 12 to 24 months of on-time payments, the issuer reviews your account and converts it to a standard card—your deposit is returned, and your credit limit may increase.

The cost depends on the card. Most secured cards charge an annual fee between $0 and $95. Interest rates typically range from 18% to 24% APR. Some cards also charge a one-time processing fee ($25 to $50) when you open the account. The Discover Secured Card and Capital One Secured Mastercard are two of the most common options; both report to all three credit bureaus (Equifax, Experian, and TransUnion), which means your payment history builds your credit score.

The math: if you deposit $1,000 and carry a $500 balance at 20% APR, you pay roughly $100 in interest over a year if you make only minimum payments. Add a $95 annual fee, and your total cost is $195. That is expensive, but it is the price of rebuilding credit when no one else will lend to you. The goal is to pay off the balance in full each month so interest does not accrue.

Store Cards and Retail Credit Options

Store cards—issued by retailers like Target, Amazon, Walmart, or Best Buy—often approve people with bad credit because the retailer benefits from your purchases regardless of whether you carry a balance. These cards typically have higher interest rates (20% to 29% APR) and no annual fee. Some store cards are closed-loop (you can use them only at that retailer), while others are open-loop (Visa or Mastercard branded and usable anywhere).

The advantage is that store cards report to the credit bureaus, so on-time payments build your credit history. The disadvantage is the high interest rate and the temptation to overspend at a single retailer. If you open a store card, use it for one small purchase per month—a tank of gas, groceries, or a household item—and pay the full balance when the bill arrives. This demonstrates responsible use without costing you interest.

Store cards are often easier to get approved for than secured cards because they do not require a deposit. However, your credit limit will be low (usually $300 to $500) and your interest rate will be higher than a secured card. Use a store card as a second card alongside a secured card, not as your only option.

Cards Marketed to People Rebuilding Credit

Several issuers market cards directly to people with bad credit. Capital One, Chime, and Self all offer cards with approval odds for people with scores below 600. These cards typically charge annual fees ($39 to $99), interest rates between 18% and 29% APR, and low starting credit limits ($300 to $500). Some, like the Self Visa Card, tie your credit limit to a savings account you fund—similar to a secured card but with a different structure.

The appeal of these cards is that they are designed for your situation and the marketing is straightforward about what you are getting. The downside is that the fees and rates are often higher than a secured card from a major bank. Before you apply, compare the annual fee, APR, and any other charges against a secured card option. A secured card from Discover or Capital One often has better terms than a card marketed specifically to people rebuilding credit.

One important note: applying for multiple cards in a short time lowers your credit score because each application triggers a hard inquiry. Space applications at least three months apart. If you are rejected for one card, wait before applying for another.

What Lenders Actually Look At When You Have Bad Credit

When your credit score is below 600, issuers focus less on your score and more on recent behavior. They want to know: Have you defaulted on an account in the last 12 months? Do you have any accounts in collections? Are you currently behind on any payments? If the answer to all three is no, your odds of approval improve significantly, even if your score is low.

This is why a secured card works: it removes the risk. You have already given the issuer the money, so they cannot lose. They approve you because the risk is zero, not because your credit score improved. As you make on-time payments, your score rises, and after 12 to 24 months, you become may be able to access for standard cards.

Issuers also look at your income and employment history, though they do not verify these as strictly as they once did. If you list your income on the application, be honest—issuers can request verification, and lying is fraud. Your debt-to-income ratio matters too: if you already carry high balances on other accounts, approval odds drop even with a secured card.

How to Use a Bad-Credit Card Without Making Things Worse

The goal of a bad-credit card is to prove you can manage credit responsibly. That means: pay your bill on time every month, keep your balance low (below 30% of your credit limit), and do not close the account after it converts to a standard card. Here is the sequence that works.

First, open a secured card and use it for one small recurring charge—a subscription, a gas station, or groceries. Charge $50 to $100 per month. When the bill arrives, pay it in full immediately. Do not carry a balance. After six months of perfect payments, your credit score will rise noticeably. After 12 months, you become may be able to access for a standard card or a second card with better terms.

Second, do not close the secured card after it converts. Keep it open and active. Closing it removes available credit from your profile, which can lower your score. Instead, use it occasionally and pay it off. The account history—the fact that you have held it for years and always paid on time—becomes one of your strongest credit assets.

Third, do not apply for multiple cards at once. One secured card is enough to start. After 12 months, you can add a second card if you want to increase your available credit. But each application triggers a hard inquiry, which lowers your score temporarily. Space them out.

Timeline: When You Can Move to a Better Card

Most secured cards convert to standard cards after 12 to 24 months of on-time payments. Some issuers convert automatically; others require you to request the conversion. Check your card's terms to know which applies to yours. When conversion happens, your deposit is returned to your bank account, usually within 5 to 10 business days.

After conversion, you can apply for a standard card with better terms—lower interest rates, no annual fee, higher credit limits. Your credit score at this point will likely be in the 620 to 660 range if you made every payment on time. That is not excellent credit, but it is good enough for cards that do not target people with bad credit.

If you want to move faster, you can apply for a second card after six months of perfect payments on your secured card. Some issuers will approve you for a standard card at that point, especially if your score has risen to 600 or above. But do not rush—one card managed perfectly for 12 months is more valuable than two cards with spotty payment history.

Frequently Asked Questions

Will applying for a bad-credit card hurt my score?

Yes, the application itself triggers a hard inquiry, which lowers your score by 5 to 10 points temporarily. However, the on-time payments you make after approval will raise your score much faster than the inquiry lowered it. The net effect after 12 months is a significant score increase. Do not let the short-term dip stop you from applying.

What is the difference between a secured card and a prepaid card?

A secured card requires a deposit and issues you a line of credit. You can carry a balance, pay interest, and build credit history. A prepaid card is just a stored-value account—you load money onto it and spend only what you loaded. Prepaid cards do not report to credit bureaus and do not build credit. Always choose a secured card if you are trying to rebuild credit.

Can I get a credit card if I have an active collection account?

It depends on the issuer and how recent the collection is. Most secured card issuers will approve you even with an active collection, because the deposit removes their risk. Store cards may also approve you. Standard cards will not. If you have a collection, prioritize a secured card and focus on making on-time payments for 12 months before applying for anything else.

Do I need to pay interest to build credit?

No. Paying interest does not build credit faster than paying no interest. What matters is that you make your payment on time and the issuer reports it to the credit bureaus. Pay your balance in full each month and avoid interest entirely. You build credit just as fast and save money.

What happens if I miss a payment on a bad-credit card?

A missed payment is reported to the credit bureaus and stays on your report for seven years. It also triggers late fees (usually $25 to $35) and may cause your interest rate to increase. If you miss a payment by 30 days or more, the issuer may freeze your account or close it. If you are struggling to pay, contact the issuer immediately—some offer hardship programs that pause payments temporarily.