Yes, but the terms will be different from what people with good credit get

You can get a credit card with bad credit. Banks and card companies do issue cards to people with low credit scores, but they charge higher interest rates, require larger deposits, or impose stricter limits. The card exists to let you borrow money — the lender just protects itself by making the terms less favorable.

Bad credit usually means a score below 580 (on the 300–850 scale most lenders use). At that level, traditional card companies see you as higher risk. Some will still take that risk, but they'll ask for a deposit upfront, charge you an annual fee, or set a very low spending limit. Others won't touch you at all. Your job is to find which lenders will work with your score and understand what you're actually paying.

Key Takeaways

  • Secured credit cards require you to put down a cash deposit (usually $200 to $2,500) that becomes your credit limit, and they're the most common option for bad credit.
  • Unsecured cards for bad credit exist but come with annual fees (often $50 to $150), higher interest rates (often 25% or more), and lower limits.
  • Credit unions sometimes offer cards to members with low scores on terms better than big banks, so checking your local credit union first can save you money.
  • Using a card responsibly — paying on time and keeping your balance low — reports to credit bureaus and can raise your score over time.
  • Predatory cards with extreme fees or cards that charge you just to apply are common; comparing terms before you commit matters.

Secured cards: the most common path with bad credit

A secured credit card requires you to deposit cash with the card issuer. That deposit becomes your credit limit. If you put down $500, you get a $500 limit. You then use the card like any other card — buy things, get a bill, pay it back. The deposit sits in an account and the lender keeps it as insurance in case you don't pay your bill.

Secured cards are issued by major banks (Capital One, Discover, Bank of America) and smaller lenders. The deposit requirement ranges from $200 to $2,500 depending on the card. Some charge an annual fee on top of that ($0 to $99); some don't. Interest rates on secured cards typically run 18% to 25% — higher than standard cards, but lower than some unsecured bad-credit cards.

The real value of a secured card is that it reports to the three credit bureaus (Equifax, Experian, TransUnion). If you pay your bill on time every month and keep your balance low, that history builds your credit score. After 6 to 18 months of good behavior, many issuers will convert your card to an unsecured card and return your deposit. That's the exit strategy: use it responsibly, rebuild, and graduate to better terms.

Unsecured cards for bad credit: higher cost, no deposit

Some lenders issue unsecured cards to people with bad credit — no deposit required. The tradeoff is that they charge you more to take the risk. Annual fees run $50 to $150. Interest rates often exceed 25%. Spending limits are usually $300 to $500. Some cards charge a monthly fee just for having the account open.

Unsecured bad-credit cards make sense only if you can't save a deposit for a secured card right now. If you have $200 or $300 to put down, a secured card is almost always the better deal because you get your money back and the terms are usually cheaper. Read the fine print carefully — some unsecured cards add fees for things like paying your bill online or calling customer service, which can make the card very expensive to use.

Credit unions and community banks

Credit unions are member-owned nonprofits and often have more flexibility than big banks with low credit scores. Many credit unions offer credit cards to members with low scores on terms better than what Capital One or Discover will give you. Some don't require a deposit. Some charge no annual fee. Interest rates may be lower.

The catch is that you have to be a member first. Membership requirements vary — some credit unions let you join if you live or work in a certain area, others require you to be part of a specific employer or organization. If you may have access to, it's worth asking your credit union what card options they have. You can find credit unions in your area through the CO-OP network or by searching your state's credit union league.

What to watch out for: predatory terms

Some lenders prey on people with bad credit by charging extreme fees or misleading terms. Red flags include: cards that charge you a fee just to apply, cards that charge a fee to activate the card after you're approved, monthly maintenance fees of $10 or more, or interest rates above 35%. These cards are legal but they're designed to make money off you rather than help you rebuild credit.

Compare at least three cards before you choose. Look at the annual percentage rate (APR), the annual fee, any monthly or activation fees, and the credit limit you'll get. A card with a $95 annual fee and 22% APR might still be better than a card with no annual fee but 29% APR and a $10 monthly fee — it depends on how much you plan to carry a balance. Use online card comparison tools or call lenders directly to ask about their terms for your credit range.

How using a bad-credit card affects your credit score

Credit bureaus track five things: payment history (35% of your score), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%). A new credit card affects most of these.

When you open a card, the lender does a hard inquiry into your credit report, which temporarily lowers your score by a few points. Once the account is open, your payment history becomes the biggest factor. Paying on time every month — even if it's just the minimum — reports to the bureaus and builds your history. Keeping your balance below 30% of your limit also helps. After 6 to 12 months of on-time payments, you should see your score start to rise.

The mistake people make is opening multiple cards at once or running up balances. Each application is a hard inquiry. Each high balance hurts your score. If you're rebuilding, open one card, use it responsibly, and wait before opening another.

Alternatives if you can't get a card

If no card issuer will work with you, other options exist. A prepaid card lets you load money onto a card and spend it — no credit check, no borrowing. It doesn't build credit because you're not borrowing, but it's useful for budgeting and online purchases. A store credit card (from retailers like Target or Walmart) sometimes has lower credit score requirements than bank cards. A credit builder loan from a credit union or online lender lets you borrow a small amount (usually $300 to $1,000) that goes into a savings account; you make payments and build credit history without spending the money.

If you have a family member or friend with good credit willing to add you as an authorized user on their card, you may benefit from their payment history — though this only works if the card issuer reports authorized user accounts to the bureaus, and it requires trust on both sides.

Frequently Asked Questions

How bad does my credit have to be to need a secured card?

Most lenders consider scores below 620 "bad credit." Secured cards are designed for scores below 580, but some people with scores in the 580–620 range also use them because the terms are better than unsecured bad-credit cards. Check what cards you're approved for before assuming you need secured — some lenders are more flexible than others.

Will getting a credit card hurt my credit score?

The application itself causes a small, temporary drop (a few points) from the hard inquiry. Opening the account adds a new account to your history, which can also lower your score slightly at first. But if you use the card responsibly, the positive payment history will outweigh these drops within a few months.

Can I get my deposit back from a secured card?

Yes. After you've made on-time payments for 6 to 18 months (depending on the issuer), you can request that the card be converted to an unsecured card. Once approved, the lender returns your deposit to you. Some issuers do this automatically; others require you to ask.

What's the difference between a secured card and a prepaid card?

A secured card is a credit product — you borrow money, make payments, and build credit history. A prepaid card is not credit; you load your own money onto it and spend it. Prepaid cards don't build credit. Secured cards do, which is why they're better for rebuilding if you can afford the deposit.

Should I apply for multiple cards at once to find one that approves me?

No. Each application is a hard inquiry that lowers your score. Apply for one card, wait to see if you're approved, and if not, try a different lender. Multiple applications in a short time can make your score drop further and make other lenders see you as desperate, which works against you.