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How can people improve their credit scores using a credit card for bad credit?

Written by Kogod School of Business | March 18, 2026

Octavian Ionici explains that people with bad credit can use credit cards as a tool to rebuild their credit, but only if they understand how credit scores work and choose products designed for repair—not for extra spending.

Key takeaways:

  • To improve a low score with a card, focus on the score formula: pay on time every month, avoid late payments, keep utilization well below 30% of your limit, and monitor all three credit reports for errors and changes.

  • Secured cards are often safer and more cost‑effective than unsecured “bad credit” cards because they require a refundable deposit, usually charge fewer and lower fees, and can help you “graduate” to a regular card after responsible use.

  • Unsecured cards for bad credit tend to have high interest and multiple fees, so people should compare options carefully, prioritize rebuilding over borrowing power, and never accept a card without researching alternatives.

“Our primary goal with a card for bad credit should be to rebuild creditworthiness carefully, not to maximize short‑term borrowing capacity” says Octavian Ionici