Credit Cards for Bad Credit: 4 Types That Are Easier to Get
Secured cards, credit-builder cards, store cards and authorized-user status: 4 easier ways to get a credit card with bad credit in the US, plus fees and scams to avoid.
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A low credit score or a past default can make it feel impossible to get a credit card. But several types of card are designed for people who are rebuilding credit or starting from scratch. This guide explains the four types that are usually easiest to get in the United States, what they cost and how to use them to improve your score.
Quick answer: with bad credit, the easiest cards to get are usually secured credit cards (you put down a refundable deposit), credit-builder cards for fair or limited credit, store cards and becoming an authorized user on someone else’s card. No legitimate issuer guarantees approval, and none will ask you to pay a fee before you are approved.
Quick comparison
| Type | How it works | Builds credit? | Watch out for |
|---|---|---|---|
| Secured card | Refundable deposit usually sets your limit | Yes, if the issuer reports to the bureaus | Annual fees; deposit tied up |
| Credit-builder (unsecured) card | No deposit, low starting limit | Yes | High APR and fees |
| Store card | Usable mainly at one retailer | Yes | Very high APRs, deferred-interest promotions |
| Authorized user | Added to a family member’s account | Often, if reported | Their late payments can affect you |
1. Secured credit cards
You pay a refundable security deposit, often a few hundred dollars, and it usually becomes your credit limit. Because the deposit protects the issuer, approval is much easier, even after missed payments or a bankruptcy. Many secured cards review your account after several months of on-time payments and may “graduate” you to an unsecured card and return your deposit.
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- Choose a card that reports to all three bureaus (Equifax, Experian and TransUnion).
- Prefer cards with no or low annual fee.
2. Credit-builder cards for fair or limited credit
Some unsecured cards are aimed at people with fair or thin credit. Starting limits are low and APRs are high, but they do not require a deposit. Use prequalification tools on issuers’ websites: they use a soft inquiry, which does not affect your score, and show whether you are likely to be approved before you apply.
Avoid “fee-harvester” cards that charge multiple setup, monthly and annual fees. Under the CARD Act, fees in the first year generally cannot exceed 25% of the credit limit, but even that can be expensive on a small limit.
3. Store credit cards
Retail cards can be easier to get than general-purpose cards, but they usually carry very high interest rates and work mainly at one store. Treat them as a credit-building tool: make small purchases and pay in full every month. Be careful with “no interest if paid in full” promotions, which can charge all the deferred interest if any balance remains when the promotion ends.
4. Becoming an authorized user
A family member with good credit can add you to their card. If the issuer reports authorized users, their positive history can help your score. Agree on rules first: you should not need to spend on the card at all, and their late payments could hurt you.
How to improve your approval odds
- Check your credit reports for free at AnnualCreditReport.com and dispute errors.
- Bring past-due accounts current where you can.
- Use prequalification instead of submitting many applications.
- Keep utilization low: use only a small part of your limit and pay in full.
- Set up autopay so you never miss a payment.
Avoid “guaranteed approval” scams
- No real issuer guarantees approval without checking anything.
- Never pay an upfront “processing” or “activation” fee to someone promising a card or credit line.
- Apply only on the issuer’s official website or app.
- Check complaints with the Consumer Financial Protection Bureau (CFPB).
Secured vs credit-builder vs store card: which to choose?
If you have had a recent default, collections or a bankruptcy, a secured card is usually the most reliable starting point, because the deposit reduces the issuer’s risk. If your score is “fair” rather than “poor”, or you simply have a thin file, a credit-builder card may approve you without a deposit. A store card makes sense only if you already shop at that retailer and will pay the balance in full every month. Becoming an authorized user works best alongside one of the other options, not instead of them.
A 12-month plan to rebuild your credit
- Month 1: pull your three credit reports, dispute errors and list every account that is past due.
- Months 1–2: open one secured or credit-builder card. Put one small recurring bill on it, such as a streaming subscription.
- Every month: pay the full statement balance by autopay before the due date.
- Months 3–6: keep your reported balance under 10–30% of your limit. Do not open other new accounts.
- Months 6–12: ask whether your secured card can graduate to unsecured, or request a limit increase without a hard inquiry.
- After 12 months: use prequalification tools to see whether you now qualify for a mainstream card with better terms.
What these cards really cost
Cards for bad credit often charge APRs well above the market average, plus annual or monthly fees. Interest only matters if you carry a balance, so the cheapest way to use any of these cards is to pay the full statement balance every month. Before applying, read the issuer’s Schumer box, the standard table that lists the APR, annual fee, late fee and other charges. If a card charges several separate fees just to open the account, look elsewhere.
Common mistakes to avoid
- Applying for several cards in the same week and collecting multiple hard inquiries.
- Maxing out a small limit, which raises your utilization and can lower your score.
- Closing your first card after upgrading; an older account helps the length of your history.
- Paying for “credit repair” services that promise to remove accurate negative information.
Frequently asked questions
Is there a credit card with no credit check?
A few secured cards approve without a hard credit check, relying on the deposit instead. Most other cards do check your credit.
What credit score do I need for a secured card?
Many secured cards accept poor or no credit, because the deposit reduces the issuer’s risk.
How fast can a secured card improve my score?
Positive history usually starts appearing within a few months of on-time payments and low balances.
Do prequalification checks hurt my credit?
No. Prequalification uses a soft inquiry. A full application usually triggers a hard inquiry.
Will a secured card show up as “secured” on my report?
Usually it appears like a normal credit card account. What matters most is your payment history and utilization.
Can I get my deposit back?
Yes. The deposit is refundable when you close the account in good standing or when the issuer upgrades you to an unsecured card.
Sources
For information only. We do not offer credit cards or arrange credit, and this is not financial advice.