Can I get a credit card with bad credit?

Even if you have bad credit, you may have options when it comes to getting a credit card.

Explore types of credit cards that may be available for people with lower credit scores, and learn how to compare options and improve your chances of getting a card. 

What you’ll learn:

• It’s possible to get approved for a credit card even if you have bad credit scores.

• If you’re having trouble getting approved for an unsecured credit card, a secured card might be an option.

• To improve your chances of approval, you can start developing responsible habits before you apply.

Before considering credit card options, it helps to understand credit scores and what’s meant by a bad or poor credit score.

Credit-scoring companies use different formulas, or models, to calculate credit scores. There are many different credit scores and scoring models. That means most people have more than one credit score.

FICO® says scores below 580 qualify as poor. And VantageScore® classifies any score below 600 into a similar category known as subprime.

According to FICO, borrowers with a FICO score in a lower range tend to be viewed as a credit risk. And VantageScore says those with subprime credit might struggle a bit more when applying for cards or loans. But, ultimately, decisions come down to each lender and the level of risk they’re comfortable with.

When you compare credit cards, you may see them grouped into two categories: secured and unsecured. Within either category, there are potential credit card options for people with bad credit: 

• Secured cards require a security deposit, which the credit card issuer holds as collateral. 

• Unsecured cards don’t require a deposit to open the account.

Both include different types of credit cards, like cash back cards, travel cards and student cards.

Comparing credit card offers and eligibility requirements before you apply could help you find the right card to meet your needs. Here are a few things to consider:

Interest rates on a credit card are typically the same as the card’s annual percentage rate (APR). And comparing rates can be a good place to start.

If your goal is to improve your credit without paying fees, take note of other potential charges like annual fees. If you’re an international traveler, you might want to check for foreign transaction fees.

If you’re using your card responsibly and making on-time payments every month, credit reporting may be one potential benefit of using a credit card instead of a prepaid or debit card. You can’t build credit unless your responsible use is being reported to the credit bureaus. So check that the issuer reports to all three major bureaus: Equifax®, Experian® and TransUnion®.

Consider which card issuers might allow you to upgrade your credit card as your credit improves. Upgrading may be preferable to applying for a new card because it allows you to keep the same account open. And that helps you avoid closing an account and triggering a hard inquiry, both of which can have a negative impact on your credit scores.

If approved for a credit card, you may be offered a lower credit limit than people with higher credit scores. But once you’ve established a history of on-time payments, your lender may consider you for a credit limit increase. 

When it comes to a higher credit limit, there may be another option for secured cardholders. Some issuers allow cardholders to increase their credit lines if they deposit more than the minimum security deposit.

A subprime credit card may come with a higher interest rate or a lower borrowing limit than cards designed for borrowers with higher credit scores. 

Subprime lending is different from predatory lending. According to the U.S. Attorney’s Office, predatory lending happens when a lender uses “fraudulent, deceptive and unfair tactics” designed to benefit them if a borrower struggles.

Federal laws like the Equal Credit Opportunity Act (ECOA) and the Truth in Lending Act (TILA) are designed to protect borrowers from things like unfair interest rates and hidden fees. Some states have laws to curb predatory lending. 

You can contact your state consumer protection office to learn more. And if you think you’ve experienced predatory lending, you can submit a complaint to the Consumer Financial Protection Bureau (CFPB).

There are things you can do to help your chances of getting a credit card—even with bad credit. So if you’re considering applying for a new card, the following tips could help.

Knowing where your credit stands could help you avoid applying for cards you’re unlikely to be approved for. To get a better idea of your credit, you have a few options. CreditWise from Capital One is one of them. It’s a free tool and available to everyone. 

Even if you’re not a Capital One cardholder, you can use CreditWise to track changes to your credit report and credit score. And checking your scores with CreditWise won’t hurt your credit.

You can also use the CreditWise Simulator to understand the potential impact of your financial decisions, like applying for a credit card, before you make them. 

Another option is to get free copies of your credit reports at AnnualCreditReport.com.

You can do an online search for cards that may be designed for people with bad credit. Then you can compare the options and look at the fees, interest rates and terms to see which ones might be a fit for your situation.

If you’re pre-qualified or pre-approved for a credit card, it usually means you’ve met some general criteria required to become a cardholder. Seeing if you’re pre-approved can help you focus on cards you’re more likely to be approved for—and avoid unnecessary hard inquiries to your credit reports.

But if you receive a pre-approval offer and decide to apply, submitting a full application typically triggers a hard inquiry.

Each card issuer’s application process might be a little different. But in general, they’ll usually ask for some basic information, such as your full legal name, current address, annual income, Social Security number and date of birth.

Gathering that information ahead of time could help when you apply.

Here are a few commonly asked questions about getting a credit card with bad credit.

If you have low credit scores, you might find that your credit card options are limited. But finding a card that works for you and getting approved is still possible. With responsible use, a credit card can help you reestablish your credit and improve your credit scores over time. And that opens the door for better cards in the future.

New to credit or looking for your next credit card?

• Check out credit cards for building credit.

• Check for pre-approval offers with no risk to your credit score.

• Earn unlimited 1.5% cash back on every purchase, every day with a cash back credit card.

• Monitor your credit score with CreditWise. It won’t hurt your credit, and it’s free for everyone.