Credit Cards for Bad Credit

There is no secret for how to get a credit card with bad credit, other than choosing the right kind of card. There are two types of credit cards that you can get with a poor credit score: secured credit cards and unsecured credit cards for people with bad credit. Both types report account information to the major credit bureaus each month, which means either can help you rebuild your credit if used responsibly. But they’re far from equal in terms of accessibility and cost.

Secured cards are the easiest credit cards for anyone to get, offering nearly guaranteed approval even to people with very bad credit. Some don’t even check applicants’ credit history, which means there’s no hard pull to hurt your score more. Secured cards also charge much lower fees than unsecured cards for bad credit.

All of that, from the high approval odds to the low fees, is thanks to the fact that you have to place a refundable security deposit to get a secured credit card. The amount of this deposit, which you typically have to place when you apply, usually serves as your spending limit. This prevents you from spending more than the card’s issuer knows for sure you can afford to repay. And without the risk of being left with an unpaid balance, the issuer can afford to approve more people as well as offer more attractive terms.

Now that you know the lay of the land, the path to plastic despite poor credit should be clear. But for your convenience, we’ll lay out step-by-step instructions below.

Here’s how to get a credit card with bad credit:

1. Compare secured credit card offers. Shopping around will help you find the card with the lowest fees, lowest deposit requirement and highest approval odds.
2. Fill out an application. Applying online is best because you get a decision soonest.
3. Place your security deposit. You’ll have to submit your deposit either when you apply or after approval but before opening an account. You can usually fund the deposit with a transfer from a bank account or prepaid card. The funds will be returned if you don’t get approved or when you close your account (minus any unpaid balance).
4. Get approved. It’s possible to get rejected for a secured credit card, but not likely.

Getting a credit card with bad credit can be tricky. But it’s crucial to open an account as soon as possible in order to begin repairing your credit reputation. A secured card allows you to do that. And it has the added benefit of helping you avoid being rejected repeatedly, which would only make matters worse.

When it comes to specific cards to consider, the Capital One® Secured Mastercard® and Discover it® Secured Card are two of the best options available. And they’re generally available to people with bad credit who don’t have a non-discharged bankruptcy on their credit report. Alternatively, the OpenSky, primor Gold and primor Classic secured cards won’t check your credit when you apply.

No matter which secured card you choose, paying your bill on time every month will add positive information to your credit reports, which will help cover up past mistakes. But sometimes that’s not enough. Some people with bad credit need a credit card with no security deposit to cover emergency expenses. In that case, an unsecured credit card for bad credit is your only option.

You won’t have much of a selection when shopping for an unsecured card with bad credit, unfortunately. You won’t get too much extra spending power, either, because high fees will initially consume much of your credit line. But it’s definitely possible to get approved for such a card. Just compare your options and double-check the eligibility requirements in their terms and conditions to make sure nothing in your background rules you out.

So, to recap, a secured credit card is your best bet if getting approved and beginning to rebuild your credit as soon as possible is your top priority. But if you need an emergency loan, you’ll have to make do with a costly unsecured card for bad credit.

In terms of selecting a specific card, you can check out unsecured options here, and the Credit One Visa in particular is pretty decent. But even decent is expensive when it comes to unsecured credit cards for people with bad credit, and your annual fee could be as high as $75 the first year and $99 thereafter, so you may also want to consider the Capital One Secured MasterCard, which has the potential to be “partially secured,” providing a credit line as high as $3,000 for a deposit as low as $49.

Guaranteed approval credit cards with $10,000 limits for bad credit don’t really exist. A secured credit card that allows you to place a very sizable deposit is the closest thing you’ll find. For example, the Wells Fargo Secured Visa allows you to put down as much as $10,000 and offers nearly guaranteed approval. But your spending limit equals the amount of your deposit, so it won’t help you buy something that you can’t already afford in cash.

There are a couple of important reasons why guaranteed approval credit cards with $10,000 limits for bad credit are not available. For starters, no credit card offers 100% guaranteed approval. There’s always some sort of minimum eligibility requirement that you must meet. That’s even true with secured credit cards.

Furthermore, credit cards for people with bad credit tend to have spending limits that are far below $10,000. Most unsecured cards for bad credit give you a starting limit of around $300, and fees eat into a lot of that early on. So if you have bad credit, you’re not going to find a credit card capable of financing a big-ticket purchase.

At the end of the day, getting a credit card with a specific spending limit should not be your top priority when you have bad credit. You’re unlikely to get an unsecured card with a $10,000 limit until you have excellent credit. So rebuilding your credit as inexpensively as possible is the best approach in the long run. Above all else, that means getting approved for a credit card as quickly as possible and paying your bill on time every month.

To help point you in the right direction, WalletHub’s editors compared dozens of credit cards for bad credit and picked their favorites.

Here are some nearly-guaranteed approval credit cards for bad credit with high limits:

·Wells Fargo Secured Credit Card: $300 - $10,000 limit (same as deposit amount)

·AeroMexico Visa® Secured Credit Card: $300 - $5,000 limit (same as deposit amount)

·Harley-Davidson® Secured Credit Card: $300 - $5,000 limit (same as deposit amount)

·First National Bank of Omaha Secured Visa® Card: $300 - $5,000 limit (same as deposit amount)

·OpenSky® Secured Visa® Credit Card: $200 - $3,000 limit (same as deposit amount)

·Discover it® Secured Card - No Annual Fee: $200 - $2,500 limit (same as deposit amount)

These offers are among WalletHub’s picks for the best secured credit cards. They all can make shopping more convenient. And as long as you pay your monthly bills on time, they’ll help you improve your credit score. If you’d like some tips for how to speed up the credit-rebuilding process, you can get personalized credit-improvement advice by signing up for a free WalletHub account.

The best credit cards for a 600 credit score are the Capital One Secured Mastercard and Discover it Secured. Your choices for 600 credit score credit cards are a bit limited because you’re in the bad credit range, so a secured credit card is your best bet. They have the highest approval odds of any credit cards and are available to people with bad credit because they require you to put down a security deposit. They also help you build credit just as well as unsecured cards do. But there are a few unsecured cards you can get too. Below is a list of some attractive options.

Here are credit cards for 600 credit score:

• Capital One Secured Mastercard: This card is only partially secured. Everyone gets at least a $200 credit line, but you might only need to deposit $49 or $99, depending on your credit. And choosing to deposit more than Capital One asks for will give you more spending power, equal to the extra amount you put down (up to $1,000 total). There’s no annual fee.
• Discover it Secured: Bad credit doesn’t mean you have to miss out on rewards; you can get 2% cash back on your first $1,000 in purchases per quarter at restaurants and gas stations and 1% on everything else. The rewards you earn the first year are doubled at the end, too. Your security deposit must be at least $200 and can be up to $2,500. And there’s no annual fee.
• OpenSky Secured Visa: There’s no credit check for this card, so it has very high approval odds. You’ll just need to be able to afford the security deposit of at least $200, but you can deposit up to $3,000. You’ll also need to have some income in order to make payments. You do have to pay a $35 annual fee, though.
• Credit One Bank Platinum Visa: You don’t need to make a deposit, as this card is unsecured. And you’ll get 1% cash back on all purchases. But there’s an annual fee that can be anywhere between $0 and $99, depending on your credit.
• Indigo Mastercard for Less than Perfect Credit: This card is unsecured. There are no rewards, and there’s an annual fee between $0 and $99, depending on your credit.

So there are plenty of choices, some of which even offer rewards. But your approval chances will be best with the secured cards. And if you pay your secured card’s bill on time for a few months, you’ll improve to the fair credit range, which starts at 640, in no time. Then you’ll be able to qualify for cards with slightly better terms, including store cards for your favorite retailers.

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

1. Store credit cards don’t have the highest approval odds.Nearly all store credit cards require at least fair credit for approval. 
2. 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. 
3. 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.