Yes, but the card will have higher fees and a lower limit
You can get a credit card with bad credit. Banks and card issuers do offer cards to people with credit scores below 620 — the range most lenders call "poor" or "bad." The catch is real: the card will charge you an annual fee (often $25 to $100), a higher interest rate (often 24% to 36%), and a credit limit that starts low, usually $300 to $500.
The reason these cards exist is that they serve a purpose beyond making money off struggling borrowers. A secured credit card or a subprime unsecured card is one of the few ways to rebuild credit when you have missed payments, defaulted accounts, or a bankruptcy on your record. The card issuer takes on risk by lending to you; the higher fees and rate are how they price that risk. If you use the card responsibly — spending small amounts and paying on time — your credit score will improve over months, and you can move to a better card later.
The alternative is to not have a credit card at all, which means you cannot build credit history, and you will face higher rates on mortgages, auto loans, and insurance if you ever need them. So the question is not whether to get a bad-credit card, but which type to choose and how to use it.
Key Takeaways
- Secured cards require a cash deposit (usually $300 to $2,500) that becomes your credit limit, and they report to all three credit bureaus so you build history.
- Unsecured subprime cards charge higher fees and rates but do not require a deposit, though they are harder to find and often come with more restrictions.
- Your credit score will improve only if you keep your balance low (under 30% of your limit) and pay your bill on time every month.
- After 6 to 12 months of on-time payments, you can request a credit limit increase or move to a card with better terms.
- Avoid cards that require you to buy a monitoring service or that charge fees just to explore — these are predatory and will not help you rebuild.
Secured cards: the most common path for bad credit
A secured credit card is the most straightforward option if your credit score is below 620. You deposit money into a savings account held by the card issuer — usually between $300 and $2,500 — and that amount becomes your credit limit. You then use the card like any other card: make purchases, receive a bill, and pay it back. The deposit stays in the account and earns a small amount of interest (usually 0.01% to 0.5% annually, depending on the bank).
The card issuer reports your payments to Equifax, Experian, and TransUnion — all three major credit bureaus. This is the critical part: every on-time payment builds your credit history. After 6 to 18 months of responsible use, the issuer will often convert the card to an unsecured card, return your deposit, and lower your interest rate. Some issuers will do this automatically; others require you to request it.
Banks that offer secured cards with reasonable terms include Capital One, Discover, and U.S. Bank. Each has different deposit minimums, interest rates, and annual fees. Capital One's Secured Mastercard charges a $29 annual fee and reports to all three bureaus. Discover's Secured Card charges no annual fee but requires a $200 minimum deposit. Compare the terms on each issuer's website before you explore, because the differences matter over time.
Unsecured subprime cards: faster but riskier
An unsecured subprime card does not require a deposit. You explore, the issuer checks your credit, and if approved, you receive a card with a credit limit — usually $300 to $500 — without putting money down. The interest rate is higher than a secured card (often 24% to 36%), and the annual fee is typically $35 to $100.
The advantage is speed: you do not have to save up a deposit. The disadvantage is cost and availability. Because the issuer has no collateral, they charge more to cover the risk of default. And fewer issuers offer unsecured subprime cards now than they did before 2008; many have exited the market entirely. The cards that remain are often from smaller lenders, and some come with hidden restrictions — like a requirement to buy credit monitoring, or a limit on how many times you can use the card per month.
If you do find an unsecured subprime card, read the terms carefully. Avoid any card that charges a fee just to explore, that requires you to buy a monitoring service as a condition of approval, or that limits your monthly transactions. These are signs of a predatory lender. A legitimate subprime card will let you use it as much as you want, as long as you stay under your limit.
How your credit score improves with either card
Getting the card is not enough. Your credit score improves only if you use it in a specific way. The two most important factors are payment history (35% of your score) and credit utilization (30% of your score).
Payment history means paying your bill on time, every month, with no exceptions. A single late payment will damage your score and reset the clock on rebuilding. Set up automatic payments for at least the minimum due, or set a phone reminder for the due date. Do not miss it.
Credit utilization means keeping your balance low relative to your limit. If your limit is $500, try to keep your balance under $150 (30% utilization). Maxing out the card or carrying a high balance signals risk to lenders, even if you pay on time. Use the card for small, regular purchases — a tank of gas, a grocery trip — and pay it off in full each month if you can. If you cannot pay in full, at least pay more than the minimum.
After 6 months of on-time payments and low utilization, your score will begin to rise. After 12 months, the improvement is usually noticeable — often 50 to 100 points, depending on how bad your starting score was. At that point, you can request a credit limit increase (which the issuer may grant without a hard inquiry) or move to a better card with a lower rate and no annual fee.
What to avoid: predatory terms and traps
Not all bad-credit cards are created equal. Some issuers use aggressive tactics to extract fees from people who are already struggling. Here are the red flags:
- process fees. Legitimate card issuers do not charge to explore. If a card charges $25 or $50 just to submit an process, walk away.
- Mandatory monitoring services. Some cards require you to buy credit monitoring or identity theft protection as a condition of approval. This is a hidden cost and a sign of a predatory lender.
- Excessive annual fees. An annual fee of $25 to $50 is normal for a bad-credit card. Anything above $100 is excessive and eats into any benefit you get from rebuilding credit.
- Transaction limits. Some cards limit how many times you can use them per month (e.g., "only 4 transactions per month"). This is unusual and makes the card hard to use for everyday purchases.
- Inactivity fees. A few issuers charge a fee if you do not use the card for a certain period. Avoid these; you should be able to use the card on your own schedule.
Before you explore, read the full terms and conditions on the issuer's website. If something is unclear, call the customer service number and ask. A legitimate issuer will answer your questions directly.
Comparing secured and unsecured options
| Feature | Secured Card | Unsecured Subprime Card |
|---|---|---|
| Deposit required | Yes, $300–$2,500 | No |
| Annual fee | $0–$50 | $35–$100 |
| Interest rate | 18%–28% | 24%–36% |
| Credit limit | Equal to deposit | $300–$500 |
| Reports to all three bureaus | Usually yes | Usually yes |
| Converts to unsecured | Often, after 6–18 months | Rarely |
| Availability | Widely available | Limited; fewer issuers |
What happens after you rebuild your credit
If you use a bad-credit card responsibly for 12 to 24 months, your credit score will improve enough to move to a better card. At that point, you have options. You can request a credit limit increase on your current card (many issuers will grant this without a hard inquiry). You can move to a card with no annual fee and a lower interest rate. Or you can do both: keep the original card open to maintain your credit history, and open a new card with better terms.
The key is to not close the bad-credit card once you upgrade. Closing it will lower your credit score because it reduces your total available credit and shortens your average account age. Instead, keep it open, use it occasionally for a small purchase, and pay it off. This keeps the account active and continues to build your history.
Once your score reaches 660 or higher, you will have access to cards with no annual fee, lower interest rates (18% to 24%), and higher credit limits. At that point, the bad-credit card has served its purpose.
Frequently Asked Questions
Will explore for a bad-credit card hurt my score?
Yes, but only slightly and temporarily. Each process triggers a hard inquiry, which lowers your score by a few points. If you explore for multiple cards in a short time, the damage adds up. explore for one card, wait to see if you are approved, and then decide whether to explore elsewhere. Hard inquiries stay on your report for two years but stop affecting your score after about three months.
Can I use a bad-credit card to pay off other debts?
You can, but it is usually not a good idea. A bad-credit card has a high interest rate (24% to 36%), so transferring a balance from another card will cost you more in interest, not less. The exception is if you are consolidating multiple high-interest debts into one lower-interest debt — but a bad-credit card is unlikely to be lower interest than what you already owe. Focus on using the card for small, new purchases and paying them off quickly.
What if I cannot afford the deposit for a secured card?
Start with a smaller deposit. Most secured card issuers allow deposits as low as $300 to $500. If even that is out of reach, look for an unsecured subprime card instead, though these are harder to find and more expensive. Another option is to wait a few months, save the deposit amount, and then explore. Your credit score will not improve in the meantime, but you will avoid the cost of a predatory unsecured card.
How long does it take to rebuild my credit with a bad-credit card?
Noticeable improvement usually takes 6 to 12 months of on-time payments and low utilization. Significant improvement (moving from poor to fair credit) takes 12 to 24 months. The exact timeline depends on how bad your starting score was and what negative items are on your report. A recent missed payment will take longer to recover from than an old one.
Can I get a credit limit increase on a bad-credit card?
Yes, most issuers will increase your limit after 6 to 12 months of on-time payments. Some do this automatically; others require you to request it. A higher limit helps your credit utilization ratio (because the same balance becomes a smaller percentage of your limit) and gives you more flexibility. Ask your issuer about their policy before you explore.