It’s harder, but not impossible: How to get a credit card with bad credit

To open a new credit card, you must first satisfy a credit card company’s eligibility criteria. Some card issuers require applicants to have a good credit score or even an excellent credit score to qualify for a new account. Yet there are other credit cards you may be eligible to open even if you have a bad credit score or blemishes on your credit report. 

We’re here to help you understand how to get a credit card with bad credit. You’ll also discover tips on how to choose the best credit card for bad credit so you can find a solution that works best for your situation.

Before you apply for a credit card for bad credit

Before you apply for a credit card or any other type of financing, it’s a good idea to check your credit report and credit score. A credit card issuer is almost certain to review your credit information when you apply for a new account. So, it’s wise to know where you stand before you begin filling out your own credit applications. 

You can access free copies of all three of your credit reports—Equifax, TransUnion, and Experian—by visiting AnnualCreditReport.com. If you discover any errors on your credit reports, you can dispute mistakes with the appropriate credit reporting agency thanks to your rights under the Fair Credit Reporting Act (FCRA). 

There are several ways to check your credit scores online as well—for free or by paying a fee. In general, a FICO® Score of 670 or above is considered to be good, very good, or exceptional. But a FICO Score of 580 or below is a poor credit score. 

Confirming that you have bad credit may feel discouraging. But it’s helpful information to know before you apply for a credit card. If you have a poor credit score, you know to look for credit cards that don’t require good or excellent credit. And if you qualify for a credit card for bad credit, you can manage the account well and use it (along with other strategies) to try to improve your credit over time.

Types of credit cards for bad credit

Even with bad credit, you may still have options when it comes to qualifying for credit cards. But it’s helpful to know which types of accounts credit card issuers are more likely to approve you for in this situation. 

Secured credit cards

A secured credit card is one option you may want to consider if you have bad credit. With a secured credit card, you make a security deposit with the card issuer when you open the account. The deposit is often (though not always) equal to your credit limit on the account. 

Your security deposit acts as collateral on a secured credit card. And becauses there’s less risk involved for the credit card issuer, you may be more likely to qualify for an account even with a bad credit score or negative information on your credit report. However, it’s important to review the pros and cons of secured credit cards before you decide if this type of account is right for you. 

Subprime credit cards

Some credit card companies also offer subprime unsecured credit cards for people with bad credit. These types of accounts don’t require a security deposit. But they may feature less attractive borrowing terms compared with other unsecured credit cards for people with good credit. 

For example, subprime credit cards may feature annual fees or higher APRs. You may also receive a low credit limit on these types of accounts. As with any type of credit card, it’s important to review credit card features, rates, terms and conditions and to compare multiple offers before you apply for a new account. 

How to choose the best credit card for bad credit

If you have bad credit, below are a few tips that may help you select the best credit card for your situation. 

Compare fees and features

When you’re shopping for a new credit card, it’s important to compare multiple offers. Taking time for this step can help you make sure you find the best deal available. 

As you review different credit card offers, keep an eye out for the following details.  

• Eligibility criteria: When you have bad credit, you’ll want to avoid applying for credit cards with eligibility requirements you can’t satisfy—like the need for a good credit score. Instead, you should search for credit cards for bad credit and focus on starting with those types of credit cards until you improve your credit in the future. 
• Minimum security deposit: If you decide to open a secured credit card, pay attention to the minimum security deposit a card issuer requires to open a new account. Depending on your budget, you may want to go with a credit card that requires a lower security deposit.
• Fees: Some credit cards for bad credit may feature annual fees and other costs that could increase your expenses. Looking for credit cards with no annual fee or lower annual fees should help you here.
• APR: It’s common for credit cards for bad credit to have higher annual percentage rates (APRs) compared to other types of credit cards. If you think you’ll revolve a balance from month to month, a higher APR could cost you a significant amount of money over time. But it’s important to remember that the best way to manage your account is to pay off the full statement balance each month. This good habit will help you avoid paying interest charges no matter what APR is assigned to your credit card. 
• Benefits: The biggest benefit a credit card has to offer is the potential to help you build your credit when you use it in a responsible manner. Some cards may also come with modest rewards or benefits you could take advantage of when you use your account for everyday purchases. These features might make it easier to choose a card if you’re on the fence about which account makes the most sense for you. 

Preapproved cards for bad credit

Once you narrow down your card selection, it’s helpful to understand that some credit card issuers may also offer the chance to get pre-approved for a credit card without a hard credit inquiry. A preapproval tool allows you to provide some basic details about yourself and see if you’re a good fit for a credit card offer. 

Getting pre-approved doesn’t guarantee you’ll qualify for a credit card. But it should mean that you have better odds of meeting a card issuer’s qualification criteria to open a new account. If you’re in a position where you’re worried about whether you’re eligible for a new credit card due to credit issues, finding a card issuer that offers a preapproval process may offer you a little more peace of mind.

Bottom line

It can feel intimidating to apply for a credit card when you have bad credit. But if you do your research and seek the right types of accounts, the process is typically much easier to navigate.

If you do qualify for a new credit card, it’s important to remember that your new account won’t erase past credit mistakes. But if you open a new credit card and manage it in a responsible manner, the account might benefit you over time. 

No matter what type of credit card you open, remember that paying on time is a must. You should also strive to pay your full balance off each month and keep your credit utilization ratio as low as possible. Follow these rules and your new credit card has the potential to be a positive, credit-building tool that could offer additional benefits as well.