Step 3. Apply for a Secured Credit Card
A secured credit card is the most common (and effective) way to get approved when you have bad credit.
How it works
You make a refundable security deposit — usually between $200 and $500 — which becomes your credit limit.
If you pay on time, your activity is reported to all 3 credit bureaus, helping you rebuild your credit score over time.
Why it works
Banks take less risk because your deposit secures the line of credit.
You get the same credit-reporting benefits as a traditional card but without needing a high score.
Popular secured cards (2025)
- Discover it® Secured Credit Card – 2% cashback on gas and dining, reports to all bureaus.
- Capital One Platinum Secured Card – May approve with as little as a $49 deposit.
- OpenSky® Secured Visa® Card – No credit check required.
- Chime Credit Builder Card – No interest, no annual fee, and no credit check.
Pro Tip: Use your secured card for small purchases only — like groceries or fuel — and pay in full every month.
Step 4. Try a Credit-Builder Loan or Alternative Account
If you’re not ready for a secured card or keep getting denied, a credit-builder loan can help you qualify later.
What is a credit-builder loan?
It’s a small loan (typically $300–$1,000) held in a bank account while you make fixed monthly payments.
When you finish paying, the lender releases the money to you — and reports your good payment history to all credit bureaus.
Best options
- Self: Build credit while saving money monthly.
- Kikoff: Low-cost credit builder line for beginners.
- MoneyLion Credit Builder Plus: Combines a small loan with financial tracking.
After 3–6 months of on-time payments, your score can improve enough to qualify for secured or starter credit cards.
Tip: A credit-builder loan is one of the safest ways to rebuild credit without going into debt.