Thu. Oct 14th, 2021
bad credit credit cards

Have bad credit but need a credit card?

Having bad credit and needing a credit card can be a time consuming task.  Most people see a credit card offer they like on the T.v or hear an ad on the radio and decide they will get that card.  But if you have bad credit,  just applying for any card can end up HURTING your credit.   You need to research the lenders before applying to make sure you meet their minimum requirements.

Having bad credit doesn’t mean you can’t get a credit card.  Nor does it mean you have to accept outrageous fees or interest rates.  But what really makes a good credit card deal? Is it a low interest rate, a high credit limit or big rewards? With so many choices around you, how can you pick a credit the right card for youl?

Finding the right bad credit credit card

Bad credit credit cards are not all made the same. A few years ago the selection was rather small.  Now there are bad credit cards that offer you rewards!  That was unheard of 5 years ago!

What is your credit score?

When you are in the market for a bad credit credit card you have to start the process with evaluating your credit.   Pull all 3 credit reports and check it for errors.  If you have the time, you should work on improving your credit score as much as possible.  The better your score, the more options you will have.

Where does your credit score fall?

raise your credit scoreIf your credit score is :

  • 720 and above – you have excellent credit and you should have no problem getting any credit card you want! Congratulations!
  • 690 – 719 – you have good credit.  You shouldn’t have any problem getting approved for any credit card you want, but be careful.  Some good credit cards have income requirements and you will need to qualify for that too.
  • 630 – 689 – you have fair credit.  You still have a lot of credit options, but the closer you are to the lower end of this range, the harder it will be for you to obtain credit.  Some good credit cards WILL NOT be available to you because they like to see a credit score above 670.
  • 629 and below – you have bad credit and should work on improving your credit score before applying.  If there is nothing that can be done to improve your score, there are  bad credit credit cards available to you.  Use these cards while you rebuild your credit.

Secured credit cards – The secret weapon of credit repair consultants

Secured credit cards are sometimes called guaranteed approval credit cards because SOME of these lenders do not pull credit.  As long as you are over 18 and have a job, they will give you a credit card that is secured by a security deposit you submit with your application.

Your credit limit will equal the amount of your security deposit.  What is great is that some of these lenders will allow you to make additional deposits over time to increase your credit limit.

After a year or two of on time monthly payments, most secured credit card issuers will offer to make your secured credit card an unsecured one.  And at that time they will send you back your security deposit.

Whether you decide to obtain an unsecured bad credit card or a secured credit card, if your credit score is falling between bad and fair, you need to take the time to start improving your credit score.  On this site we provide a lot of information to help you achieve this goal.  If you don’t feel like you can fix your credit on your own, we recommend you contact FES for professional credit repair.


By Elizabeth Roberts

Liz Roberts is a Sr. Credit Analyst with Horizon Funding Group Inc. She has been in the business credit industry for 20 years focusing on bad credit business owners and start up businesses. Her background is in consumer credit and collections prior to joining the Horizon team as a credit analyst and writer.

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