There are very few store credit cards for bad credit. Nearly all store cards require at least fair credit for approval, according to WalletHub’s database of 1,000+ credit card offers. But there are exceptions from time to time. Right now, the best store credit card for bad credit is the Fingerhut Credit Account. You can get it with a poor score and there’s no annual fee. Plus, it reports to the credit bureaus every month, which will allow you to build credit if you pay your bills on time.
Fingerhut is an online retailer that sells a broad array of goods from major brands, often at a discount, and allows you to pay for them in monthly installments. You can buy TVs and computers for up to 25% off, for example.
There are other types of cards to consider, too. They include unsecured credit cards for people with bad credit as well as secured credit cards, which give you the highest approval odds. Some even offer rewards and are affiliated with a popular brand. In other words, they’re like store credit cards for bad credit, but you can use them anywhere. You can check out WalletHub’s top picks below.
Here are the best store credit cards for bad credit:
A store credit card is one that can only be used to make purchases from whichever retailer it’s affiliated with. And there’s only one of those available to people with bad credit right now: the Fingerhut Credit Account. So that has to be the best store credit card for bad credit, if you’re looking at things literally.
But there are a number of co-branded credit cards for people with bad credit, too. They’re connected to airlines, hotel chains and other companies but allow you to make purchases anywhere.
Just bear in mind that the best store-affiliated credit cards for bad credit aren’t necessarily the same as the best credit cards for bad credit overall. In particular, all of the very best bad-credit cards don’t charge annual fees. That’s important if your top priority is to rebuild your credit standing, as opposed to borrowing money for emergency expenses. A secured card is all you need if you’re not in the market for an emergency loan. Secured cards also tend to be far cheaper than unsecured credit cards for bad credit.
All major secured credit cards report account information to the credit bureaus each month. So as long as you pay your bills on time, if you even make purchases with your card, that info will be positive. And that will gradually offset the negative impact of past mistakes.
3 Tips for Getting the Best Store Credit Card with Bad Credit
Store credit cards don’t have the highest approval odds.Nearly all store credit cards require at least fair credit for approval.
Store credit cards and co-branded credit cards are different. A store credit card works at no more than a few retailers, but usually just one. A co-branded credit card is affiliated with a retailer or other company but can be used anywhere Visa, Mastercard, Discover or American Express is accepted.
Secured cards are best for credit repair. Store credit cards for poor credit are barely a thing. Secured credit cards, on the other hand, were made to help people with bad credit rebuild.
If you’re interested in more advice, sign up for a free WalletHub account. You can check your credit score for free, with daily updates, and receive personalized credit-improvement tips and recommendations for credit cards with high approval odds.