Step 1: Be realistic
Take an honest look at your financial situation.
Credit card issuers like to wow consumers with low interest rate offers and perks like cash back and discounted concert tickets. But remember, you have bad credit — so no soup for you.
You'll be lucky to get a card with a high interest rate, and your only reward will be points toward a better credit score.Â
Start by checking your credit score and credit report. There are free credit check options that will give you a quick look at your score, or you can opt to pay a small monthly fee to see your full report and get ongoing credit monitoring service.
Earn cash back on what you buy most
Maximize your spending and earn up to 6% cash back on groceries, streaming, gas, and more. Whether it’s everyday purchases or splurges, this card puts money back in your pocket.
Learn moreStep 2: Explore your options
There is no One-Size-Fits-All solution for bad credit. Instead, you need to find the solution that works best for you.
Department stores and other retailers often have more relaxed standards for credit applicants. If your score is decent enough to be accepted, you might be able to get a store credit card.
These cards usually have low credit limits and might work only at specific stores, but they're a great way to reestablish credit.
Secured credit cards are another good option for applicants with poor credit. These cards are offered by banks, which require you to make a cash deposit.
The deposit amount becomes your credit limit, so if you don't make your payments, what you owe on the card is deducted from your deposit. But if you use the card responsibly, your deposit money will be returned, your credit will improve and you'll be offered a regular credit card. Â
Step 3: Beware of hazards
Don't be a victim of bad financial actors. Educate yourself on how to remain on the right path.
A person who has bad credit is at risk of being victimized by predatory companies dangling what are called subprime credit cards.Â
These cards can come with super-high interest rates (we're talking 30%!), lots of fees, low credit limits and painful penalties if you're late with a payment or go over your limit. Subprime cards can be relatively easy to get, but it's also easy for them to put you in a spiral of debt.
Other companies offer products that won't do much for your bad credit. Prepaid credit cards are technically not credit cards at all. You pay a deposit, and it goes on the card. Your purchases come directly off the deposit amount.
There is no debt to pay back, so there is no benefit to your credit score. The main reason to have a prepaid card is if you don't have a bank account and want to make electronic purchases.Â
This 2 minute move could knock $500/year off your car insurance in 2025
OfficialCarInsurance.com lets you compare quotes from trusted brands, such as Progressive, Allstate and GEICO to make sure you're getting the best deal.
You can switch to a more affordable auto insurance option in 2 minutes by providing some information about yourself and your vehicle and choosing from their tailor-made results. Find offers as low as $29 a month.
Find the best rate for youStep 4: Stick to your plan
Once you have a plan, the only thing left to do is follow it.
Make a decision about what to do next and make sure you don't relapse into bad financial habits. Remember your goal of rebuilding your credit score long term, and before you know it, you'll start seeing better scores.
Little by little, you can revive your credit score!
Kiss your credit card debt goodbye
Millions of Americans are struggling to crawl out of debt in the face of record-high interest rates. A personal loan offers lower interest rates and fixed payments, making it a smart choice to consolidate high-interest credit card debt. It helps save money, simplifies payments, and accelerates debt payoff. Credible is a free online service that shows you the best lending options to pay off your credit card debt fast — and save a ton in interest.
