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Good Credit Cards for People with “Bad” Credit

5 min read

Last Updated: June 24, 2025

Table of contents

Key Takeaways

Secured credit cards may be an option for borrowers who don’t qualify for traditional, unsecured credit cards due to unestablished or poor credit.
Secured credit cards require a security deposit, which usually equals the credit limit.
A secured credit card can act as a credit builder with responsible use.

You might be facing an uphill battle getting a credit card if you have less than stellar credit or haven’t established a credit history. Fortunately, there are ways to get a good credit card, even with poor credit.

Secured credit cards cater to borrowers building or rebuilding credit history. While not everyone may qualify for a secured card, credit score requirements are usually less strict for secured cards than unsecured credit cards, which means a less-than-perfect credit score may not stop you from getting approved. Using a secured credit card wisely can help you begin building credit history from the ground up.

What is a “poor” credit score?

Generally speaking, a “poor” credit score is a credit score that’s low enough to make lenders consider you a risky borrower.

FICO^® considers a score from 300-579 to be a poor credit score. A credit score in the “fair” range–580-669–may also be too low to qualify for some types of credit, even though it’s not in the lowest credit range.¹

But the FICO^® Score is just one credit scoring model. Other companies may use a model that defines scoring ranges differently.

What causes a low credit score?

A poor credit score is typically the result of late or missed credit payments or consistently high balances on your credit card accounts. If you’re new to credit, you may not have enough credit history to establish a credit score. Some of the other categories that influence your credit score include new credit, the age of your credit accounts, and your credit mix (between revolving credit, like a credit card, and installment credit, like a personal loan).

Using a credit card to improve a bad credit score

Used responsibly, a credit card can be an effective credit builder—as long as it reports your activity to at least one major credit bureau.

On-time credit card payments are crucial for rebuilding credit history. Your credit card issuer may offer payment alerts or even AutoPay to make keeping track of payment due dates easier. Building a consistent, positive payment history can go a long way in improving a bad credit score.

Repaying your monthly credit card balance in full may likewise help you lower your credit utilization ratio, the sum of your outstanding balances compared to your overall available credit. Low credit utilization may improve your credit score because it shows lenders you can manage your debts responsibly.

Why a secured credit card may be good for bad credit

Secured credit cards differ from unsecured cards because they require a security deposit as collateral at account opening. Typically, the card’s credit limit equals the deposit amount.

The cash deposit acts as payment security for the credit card issuer. If you miss payments, the card issuer may use the deposit to cover your balance and close your credit account. Because secured cards require collateral, they typically have fewer eligibility requirements than unsecured credit cards. That’s why you may still qualify, even with a “bad credit score.” There’s no credit score required to apply for a Discover it^® Secured credit card.²

Many credit card issuers will report your secured card account activity to the three major credit bureaus. So, paying at least the minimum payment on time on your balance each month can also help you build your credit with responsible use. After you make a series of on-time payments to your secured card, you may be eligible to get your deposit back.

When can you graduate from a secured to an unsecured credit card?

It’s important to remember that a poor credit history doesn’t necessarily mean a poor credit future. Secured credit cards let you demonstrate responsible credit management, such as making timely payments and maintaining a low credit utilization.

After you start to build or rebuild your credit history using a secured credit card, you may qualify to transition to an unsecured card with a credit line increase. Keep in mind that if you graduate from a secured card, your credit account number, benefits, and rewards often remain the same. Upgrading your card may require a hard credit check.

Did you know?

With the Discover it^® Secured Card, you can upgrade to an unsecured card after six consecutive months of on-time payments and maintaining good status on all your credit accounts.⁴ Discover secured cards also helps you to earn rewards on every purchase.

Learn More

What should you look for in a secured credit card?

Many secured credit cards come with a higher interest rate and lower credit limit than unsecured cards. But you can still make the most of your card.

You don’t need perfect credit to qualify for a card with perks. Consider secured card options that offer rewards for each eligible purchase.

And look for secured credit cards with no annual fee. An annual fee may make it harder to keep track of your spending and maintain a low balance. At Discover^®, there’s no annual fee on any of our cards.

You may also want to double-check that the credit card issuer you choose reports payment history to at least one major credit bureau. If your card issuer doesn’t report your purchases and payments to a credit bureau, then your positive credit habits won’t appear on your credit report or impact your score.

The bottom line

It may seem daunting, but finding good credit cards with a poor credit history is possible with secured credit cards. As you narrow your search, be sure to review each card’s terms and conditions to find the best credit card for you.

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