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.

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 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® Secured Visa® Credit Card, First Progress Platinum Prestige Mastercard® Secured Credit Card and First Progress Platinum Select Mastercard® Secured Credit Card 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.

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 Credit Card 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 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: $200+ 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 secured cards because they offer easy approval and are often much less expensive than unsecured credit cards for bad credit. Secured credit cards require a security deposit, and the card’s credit limit is equal to the amount of the deposit. This deposit is fully refundable when you close your account with a $0 balance.

If you’re not sure where to start looking for secured credit cards for a 600 credit score, WalletHub has picked out a few examples of popular offers.

Popular Credit Cards for a 600 Credit Score:

• Capital One® Secured Mastercard®
• Discover it® Secured
• BBVA Compass Business Secured Credit Card
• OpenSky® Secured Visa® Credit Card
• Navy Federal Credit Union nRewards® Secured Credit Card
• SunTrust Secured Credit Card

To learn more, check out WalletHub’s guides on secured credit cards and how to rebuild credit.

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.

The best secured credit card for bad credit is Discover it Secured because it has a $0 annual fee, rewards you with 1% - 2% cash back on purchases, doubles the rewards you’ve earned after the first year, and doesn’t require a minimum credit score. The Discover it Secured Card’s main approval requirements are being 18+ years old and having enough income to afford monthly bill payments, plus a refundable security deposit of $200 or more.

The rest of the best secured credit cards for bad credit scores are the OpenSky Secured Card (no credit check), the Capital One Secured Card (could be just partially secured), and the Harley-Davidson Secured Card (no annual fee). The first two in particular deserve recognition because of their uniquely attractive features.

The OpenSky Secured Mastercard is the best secured card for people with very poor credit because the issuer won’t check your credit history when you apply. As long as you’re at least 18 years old with a U.S. mailing address, an SSN, and income that exceeds your expenses, you should be approved. And the Capital One Secured Mastercard is great for people with bad, but not terrible, credit because you have the opportunity to get a credit limit that’s higher than the amount of the deposit you put down. The starting credit limit is $200, and you might be approved for a deposit of as low as $49. Capital One Secured also has a $0 annual fee.

Best Secured Credit Cards for Bad Credit:

• Best Overall: Discover it Secured Card
• No Credit Check: OpenSky Secured Mastercard
• Low Deposit: Capital One Secured Mastercard
• No Annual Fee: Harley-Davidson Secured Card

In general, secured credit cards are the best type of credit card for people with bad credit. Secured cards offer the highest approval odds of any credit cards, and they tend to be a lot cheaper in the long run than unsecured cards for bad credit.

You just have to make sure to pay your bill on time every month. If you do that, your credit should steadily improve. And that should help you qualify for a credit card upgrade sooner than you might think.

There are credit cards for bad credit with no deposit and instant approval. But it’s not quite as simple as it sounds. Credit cards for bad credit with no deposit are unsecured cards. There are lots of them. And there’s the possibility of instant approval with any card you can apply for online. But it’s never guaranteed. Instant approval tends to happen when your credit and income are better than the card’s requirements. You’ll also need to make sure all your personal information is correct. The company needs to verify it to instantly approve you.

The best credit cards for bad credit with no deposit and instant approval are the Credit One Bank Platinum Visa and the NASCAR Credit Card from Credit One. The Platinum Visa card offers a credit line of at least $300 and charges $0-99 in fees per year. The NASCAR Credit Card also gives you a $300+ spending limit and charges $0-99 per year. Both are available to people with poor credit and let you apply online, and both give you at least 1% cash back on all purchases.

There are some other contenders, too. They include the Milestone Mastercard and the Indigo Mastercard for Less than Perfect credit. Neither of these cards give rewards, but they also won’t charge one-time fees, which certain unsecured cards for bad credit do. 

Best credit cards for bad credit with no deposit and instant approval:

• Credit One Bank Platinum Visa for Rebuilding Credit: 1% cash back on eligible purchases. $0-$99 annual fee, depending on your credit. Minimum credit limit of $300.
• NASCAR Credit Card from Credit One Bank: 2% cash back at NASCAR.com, 1% cash back on other eligible purchases. $0-$99 annual fee, depending on your credit. Minimum credit limit of $300.
• Milestone Mastercard: No rewards. $35-$99 annual fee, depending on your credit. Minimum credit limit of $300.
• Indigo Mastercard for Less than Perfect Credit: No rewards. $0-$99 annual fee, depending on your credit. Minimum credit limit of $300.
  
• First Access Visa: No rewards. $89 one-time fee. $75 annual fee first year, $48 after. Minimum credit limit of $300. 
• Total VISA Credit Card: No rewards. $89 one-time fee. $75 annual fee first year, $48 after. Minimum credit limit of $300.

As you can see, several cards come with a one-time fee. Most cards call this a “processing fee” and make you pay it before you can use your account. It’s basically like an extra annual fee for just the first year. 

Most gas rewards credit cards require good or excellent credit for approval. You even need at least fair credit to get a gas card that can only be used at a certain gas-station chain. But that doesn’t mean you’re out of luck.

If you want the convenience of paying at the pump (especially important when it’s cold out or you’re in a hurry), you can simply open a secured credit card. Secured credit cards offer nearly guaranteed approval, given that you are required to place a refundable security deposit which acts as your spending limit. Plus, some secured cards offer rewards from time to time.

There are several ways to raise your credit score in 30 days. Reducing your credit utilization is one of the fastest ways to raise your credit score, and you can do it by paying down debt, spending less, paying your bill more often or asking for a higher spending limit. Disputing negative information on your credit report can help quickly, too. The bottom line is that your credit score can change anytime new information is added to your credit report or old information is removed from it. Creditors typically report updated information about loans and lines of credit at least once a month, so making the right moves for 30 days can definitely produce results for your credit score.

But you must understand that true credit building is a multi-year process. You’ll still need to manage your money responsibly moving forward for your credit-score gains to last. And that’s one reason why you should never, ever pay for credit repair. Nonprofit credit counselors can be very helpful, but services that make wild promises and charge fees, especially up front, are best avoided.

Now, with that being said, let’s get back to the business of boosting your credit score by next month. Below, you will find a collection of tips that should help anyone improve their credit score quickly. You can also get personalized advice for how to proceed by checking out your free credit analysis on WalletHub.

7 Ways to Raise Your Credit Score in 30 Days:

1. Dispute Credit-Report Mistakes. Removing negative information from your credit report is perhaps the best way to generate substantial short-term credit-score improvement. But you can remove such information only if it’s wrong or the result of fraud. So go over your report with a fine-tooth comb, cross-referencing each item with your own financial records. If you find something fishy, investigate it further and, if necessary, file a dispute with the credit bureau.
2. Make a Big Debt Payment. How much you owe, especially compared to your income, has a big impact on your credit score because it tells lenders how risky it would be to let you borrow more. A credit score measures your risk to lenders, after all. So the more debt you pay off, the more your score should improve.
3. Reduce Your Credit Card Statement Balance. Credit utilization is calculated by dividing your credit cards’ balances at the end of each billing period by their spending limits. So if you reduce the balance listed on your monthly statement, you also reduce your utilization, which in turn improves your credit score. You can reduce your statement balances by spending less, making larger payments, or paying your bill more frequently. For example, paying a credit card’s bill twice per month – once before your statement is generated and again before the due date – allows you to lower your credit utilization and avoid interest.
4. Become an Authorized User. If a family member has excellent credit, ask him or her to add you as an authorized user on an existing credit card (preferably an old one with a high credit limit and no negative records). This might take too long to process to benefit you in a month’s time. But it should provide a bump pretty quickly.
5. Dispute Negative Authorized-User Records. Not many people know this, but if you are or were an authorized user on an account that is dragging down your credit score, you can ask the credit bureau to remove it from your credit report. Authorized users are not responsible for paying the bill, which means they don’t have to suffer the consequences of not doing so. You just have to file a dispute.
6. Ask for a Higher Credit Limit. More available credit will reduce your overall credit utilization ratio, a key component of your credit score. Be careful, though. Many credit-card issuers will re-check your credit history — causing a hard inquiry and short-term credit-score damage — before approving a higher limit. So make sure to ask about your creditor’s policies first. You should also make sure all your credit limits are expressed accurately on your credit reports. If a listed limit is lower than it should be, ask the issuer to report an updated figure to the credit bureaus. Take note, however, that if you have an “NPSL” credit card, there might not be much you can do about an unusually reported credit limit.
7. Write a Goodwill Letter. If your credit report bears only a minor blemish — one late payment, perhaps — and the rest of your credit history is solid, you can try asking the issuer for a favor. For example, you could call and make a case for why your slip-up should be forgiven and stricken from the record, so to speak. Or you could send an official “Goodwill Adjustment Letter,” which formalizes the request. This tactic is most successful before a negative record actually makes its way to your credit report. But it’s worth a shot afterward as well.

You can keep track of your credit score’s latest developments by signing up for a free WalletHub account. WalletHub is the first and only website to offer free credit scores and full credit reports that are updated on a daily basis. Additional information about increasing your credit score can be found in our comprehensive Credit Improvement Guide.

You probably can’t get a Walmart credit card with bad credit because even the Walmart-only version requires fair credit for approval. That means your chances are best if your credit score is 640+. That’s not to say getting a Walmart credit card with bad credit is impossible. Each applicant’s situation is unique, and Walmart looks at factors such as income too. But it’s very unlikely, and not worth the additional credit score damage applying will do. That said, a Walmart credit card isn’t out of your reach forever. It’s possible to go from bad credit to fair credit in months, or even weeks, if you make the right moves.

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

1. Get a secured card. Meant for people with bad credit, secured credit cards have the same credit-building potential as unsecured cards. You just have to put down a security deposit that acts as your credit line.
2. Make on-time payments. Paying on time is required if you want your score to rise.
3. Plan your utilization. Try to use less than 30% of your available credit.
4. Reduce your debts. Owing less means you can borrow more.
5. Monitor your credit. Checking your credit score and report frequently will help you figure out how to improve and when you’re ready for a Walmart card.
6. Apply for a Walmart card. Once you get your score to 640+, your chances of success will be much better.

So it’s unlikely you’ll get approved for a Walmart credit card with bad credit, but you can certainly work your way up to fair credit pretty quickly.

The best Discover card for bad credit is definitely the Discover it Secured Credit Card. In fact, it’s really the only Discover card that you can count on getting despite a bad credit score. Here’s how it works: when you apply, you place a security deposit of at least $200, which will become your credit line if you’re approved. This refundable deposit acts as collateral for Discover, reducing their risk and explaining why it’s so easy to get approved.

But that’s not all you need to know about Discover it Secured. There’s more to learn, both in terms of its benefits and some fine print details.

Discover it Secured is the best Discover card for bad credit because:

• You won’t pay an annual fee. This card is free to have. There’s no foreign transaction fee either. But do keep in mind that you’ll have to temporarily part with at least $200 to make the security deposit.
  
• There are rewards. It’s unusual for a secured card to have rewards, but Discover it Secured does. You get 2% cash back on your first $1,000 of purchases at gas stations and restaurants each quarter. Everything else gets 1% cash back. And at the end of your first year, your rewards for the year are matched by Discover.
  
• It’s unlikely, but possible, you’ll be declined. Income, debt, and bankruptcy can affect your approval odds. But this is your best chance, as far as Discover cards go.
  
• Credit-building potential is equal to unsecured. There’s no difference in the way secured cards and unsecured cards report information to the credit bureaus.
  
• You can increase your credit limit. Anytime after getting your first monthly statement, you can call Discover at 1-800-347-3085 to add to your security deposit. Your credit line will increase by the amount of this additional deposit.
  
• Graduation to unsecured is possible. After you’ve had it Secured for at least 8 months, Discover will review your credit every so often. They might decide to refund your security deposit and transition you to an unsecured card.

So Discover it Secured is easy to get and has a lot of benefits. But if you want more options and are open to cards from other companies, I’d recommend the Capital One Secured Mastercard, Credit One Bank Platinum Visa and Indigo Mastercard. They’re some of the best overall offers for bad credit.