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In a nutshell
A subprime credit score is a score below 619. (Deep subprime is 580 or lower.) Subprime credit cards are designed for people with subprime credit scores.
- A subprime or deep subprime credit score makes it hard to qualify for credit-building opportunities, including credit cards.
- Cards designed with subprime users in mind generally have lower credit limits and often require an up-front deposit.
- These cards are useful in situations where you are required to pay with a credit or debit card, and with careful use you can use them to build your credit score.
What are subprime credit cards?
Subprime credit cards are cards geared towards those with fair or bad credit. These borrowers may have late or missed payments on past loans or cards. They might have faced a lien on their home, a foreclosure, or may have filed for bankruptcy.
Subprime credit cards are available from both major financial institutions and smaller online lenders. They usually don’t come with as many perks or benefits as credit cards for those with prime (or super-prime) credit scores. That’s because the lender is taking on more of a risk by lending to borrowers with subprime credit.
How does a subprime credit card work?
Like regular credit cards, you’ll need to apply for a subprime credit card through the card issuer. Some issuers may have some credit score requirements, although many that offer these types of cards either don’t have any requirements, or they are specifically geared towards borrowers with bad credit.
Once you get approved for a subprime credit card, you’ll complete your registration, sign in to your account, and view your details. You’ll see your credit limit, your APR, and when your monthly payments are due. Then you can use the card as needed, up to your limit.
Three noteworthy subprime credit cards
Like traditional credit cards, not all cards are managed or created equally. You might find some traditional credit cards just for subprime borrowers. There are also secured credit cards, which require an upfront deposit. (This deposit acts as your credit limit.) Here are three credit cards to explore if you have subprime credit.
card_name
Chime Credit Builder Visa® Credit Card
Chime Credit Builder Visa® Credit Card
Chime doesn’t trigger a hard credit inquiry, so you can apply for this card without having any sort of credit history. There’s no annual fee or interest charges. All you need to qualify is a Chime checking account that accepts direct deposits of at least $200. This card reports to all three of the major credit bureaus: Experian, Equifax, and Transunion.
card_name
Capital One Platinum Secured Credit Card
Capital One Platinum Secured Credit Card
This card gives you some of the lowest minimum deposit requirements among secured credit cards: $49, $99, or $200. With responsible credit use, you could get a traditional credit card in as little as six months of using this card.
There’s no annual fee, but if you don’t pay off your balance every month, you could face a purchase APR of more than reg_apr,reg_apr_type. This is on the higher end of APRs between the cards we evaluated.
card_name
OpenSky® Plus Secured Visa® Credit Card
OpenSky® Plus Secured Visa® Credit Card
There’s no annual fee or credit check for this card. In six months, you could see a credit line increase or even move up to a traditional unsecured credit card. There’s a $300 minimum deposit and a reg_apr,reg_apr_type APR rate if you carry a balance from month-to-month.
card_name
Applied Bank Secured Visa® Gold Preferred® Card
Applied Bank Secured Visa® Gold Preferred® Card
Secured credit cards tend to have higher interest rates than other credit cards, but this one caps the APR at reg_apr,reg_apr_type. There’s no credit check when you apply, and there’s a $200 minimum deposit requirement (which is also your credit limit). You could hit a $5,000 limit with extra deposits after approval.
When should you get a subprime credit card
You should get a subprime credit card if:
- You have less-than-stellar credit and you otherwise don’t qualify for a regular credit card.
- You have the funds to pay the minimum balance or the full amount on your card each month.
- You want to start improving your credit score but don’t qualify (or need) other lending products, such as loans.
- You want to take out loans in the future but need to start improving your credit score now.
You should skip a subprime credit card if:
- You don’t have the funds to pay off your card every month.
- You qualify for better credit card deals with a regular credit card.
- You have the option to be an authorized user on someone else’s credit card.
How to improve a subprime credit score
Having subprime credit can hold you back from borrowing in the future, whether that’s a car loan or a mortgage. There are a few ways you can build your subprime credit score to be prime or even super prime.
- Pay on time: To stay in good standing, you’ll need to make at least the minimum payment on your card every month.
- Avoid high credit utilization: If you want to avoid interest charges, try to pay off your card in full by the end of the pay period. The higher your usage carries over from month-to-month, the lower your credit score goes. Paying off your card in full every month (or as much as you can) will give your score a boost.
- Find ways to show off your good usage: After a few months of on-time payments, your score should go up. You can also use programs, like Experian Boost, that allow you to add utility bills, rent, and subscription services to your credit score. The more you can show off how responsible you are with credit, the higher your score will climb.
The AP Buyline roundup: Move from subprime to primetime
Having a subprime credit score is sub-optimal, but you can still get a credit card for essentials like paying bills with a subprime credit card. These cards won’t have a high credit limit or many of the perks premium cards have, but you can use a subprime card to build credit, and with careful use before you know it you may be able to move up to the top tier.
AP Buyline has partnered with CardRatings for our coverage of credit card products. AP Buyline and CardRatings may receive a commission from card issuers.
AP Buyline’s content is created independently of The Associated Press newsroom. Our evaluations and opinions are not influenced by our advertising relationships, but we might earn commissions from our partners’ links in this content. Learn more about our policies and terms here.