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Credit Cards for People with Bad Credit
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Credit Cards for People with Bad Credit

Last Updated: August 8, 2022
2 min read

Let’s Learn About: The Best Credit Cards for Bad Credit

  1. Secured credit cards can be a good for someone who doesn’t qualify for traditional, unsecured credit cards because of bad credit

  2. Secured credit cards require a security deposit as collateral for your account

  3. The Discover it Secured Card can help you build credit with responsible use*

If you have bad credit or scant credit history, you might face an uphill battle getting approved for a credit card. Fortunately, there are ways to build credit from the ground up. Secured credit cards cater to consumers who want to build or rebuild their credit. Using a secured card responsibly can put you on the road to better credit. While not everyone can qualify for a secured credit card, the credit score requirements are likely to be less strict for a secured card than they are for a standard credit card.

Secured credit cards may approve someone with bad credit

If you have bad credit or no credit history, getting approved for a traditional credit card may not be possible. One effective strategy for building or rebuilding credit is, instead, using a secured credit card. Secured credit cards differ from traditional, unsecured cards in that they require a cash deposit that is used as collateral. Your credit limit will usually equal the amount of this deposit. Many secured credit cards report activity to the major credit bureaus, so paying your balance on time and in full each month can help you build a credit history. With the Discover it® Secured Card, you can get your deposit back after 6 consecutive on-time payments and maintaining good status on all your credit accounts.3

Building credit history or rebuilding bad credit may give you the best credit card choices

Whichever credit card you choose, it’s important to remember: a bad credit history does not necessarily mean a bad credit future. Secured credit cards let you demonstrate responsible credit management, such as making timely payments and keeping your balance to a small amount of your available credit. As you build or rebuild your credit, you may qualify to transition your secured credit card to a standard credit card, or you may be able to choose a new card geared toward people with good credit.

Important information

Make the most of your tax refund. Build your credit history.*

Apply for a Discover it® Secured Card and use your tax refund as a security deposit.**
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*Discover reports your credit history to the three major credit bureaus so it can help build your credit if used responsibly. Late payments, delinquencies or other derogatory activity with your credit card accounts and loans may adversely impact your ability to build credit.

**Minimum Security Deposit:  You must make a minimum security deposit of $200 (or more, in increments of $100 up to $2,500), which will equal your requested credit limit. Discover will determine your maximum credit limit by your income and ability to pay.

Getting your deposit back: Monthly reviews start your seventh month as a customer. We will refund your security deposit if you have made all payments on time for the last six consecutive billing cycles on all your Discover accounts including any loans, and you’ve remained in “good status” on all credit accounts you are responsible for whether they are Discover accounts or not. “Good status” means: (1) your credit report shows no delinquencies, charge-offs, repossessions, or bankruptcies for the six months prior to our review; and (2) your Discover Secured Card is not in a prohibited status at the time of our review, including, but not limited to: closed, revoked, suspended, subject to tax levy, garnishment, deceased, lost/stolen, or fraud. Monthly reviews may be delayed if you change your payment due date. When you qualify to upgrade to a standard, ‘unsecured card’, Discover will also consider you for a credit line increase. We typically process your refund in 2-3 business days based on your delivery preference. If you close your account and pay in full, we’ll return your deposit within two billing cycles plus ten days.

Legal Disclaimer: This site is for educational purposes and is not a substitute for professional advice. The material on this site is not intended to provide legal, investment, or financial advice and does not indicate the availability of any Discover product or service. It does not guarantee that Discover offers or endorses a product or service. For specific advice about your unique circumstances, you may wish to consult a qualified professional.

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