Can you get a line of credit with bad credit?

Yes — secured lines of credit (backed by a deposit or collateral) are available with bad credit (FICO below 580), and some unsecured credit lines accept scores in the 580–620 range. The trade-off is lower limits, higher APRs, and mandatory security deposits until your score improves.

Secured vs. unsecured credit lines with bad credit

A secured credit line requires a cash deposit or asset as collateral. The credit limit typically equals or approximates the deposit. Because the lender's risk is offset by the collateral, approval is possible even with scores in the 500s. Common versions include secured personal lines of credit from credit unions, secured credit cards with credit-line features, and home equity lines of credit (HELOCs) for homeowners.

An unsecured credit line requires no collateral but relies entirely on creditworthiness. Most traditional banks require a 670+ FICO for unsecured personal lines. Some online lenders and credit unions extend unsecured lines to borrowers in the 580–640 range — but at higher APRs (typically 25–36%) and lower starting limits ($500–$2,000).

How to qualify for a line of credit with bad credit

Check credit unions first. Federal credit unions are member-owned nonprofits with more flexible underwriting than banks. Many offer Payday Alternative Loans (PALs) and small credit lines starting at $500 for members with any credit score.
Bring collateral. A secured credit line (backed by a savings deposit, vehicle, or home equity) dramatically widens eligibility. The CFPB notes that secured products are one of the primary tools for thin-file or poor-credit consumers.
Show income stability. Lenders offset credit risk with income evidence. Three months of pay stubs or bank statements showing consistent deposits can compensate for a low FICO.
Add a co-signer. A creditworthy co-signer who jointly assumes liability can unlock unsecured terms the primary borrower couldn't qualify for alone.
Use a credit-builder strategy first. A 6–12 month secured credit card + on-time payment history can lift a sub-580 FICO into the 620–650 range, opening unsecured credit line options. See How to Improve Your Credit Score.

Typical terms for bad-credit credit lines in 2026

Secured personal credit line: $300–$5,000 limit, 10–18% APR, requires cash deposit equal to limit
Secured credit card with credit-line function: $200–$2,000 limit, 20–29% APR
Credit-union unsecured personal line (580–640 FICO): $500–$2,500 limit, 18–28% APR
Online lender unsecured line (580+ FICO): $1,000–$5,000 limit, 25–36% APR
HELOC (bad credit, 580+ FICO, significant home equity): $10,000–$50,000+, 7–12% APR — but your home is at risk

Alternatives if you can't qualify for a credit line

If your score is below 580 and you can't secure a deposit, a credit-builder loan may be the right first step — you make payments on an amount held in savings, building both a credit history and a savings balance to fund a future deposit. See Credit-Builder Loans vs. Secured Credit Cards for a comparison.

Business owners with bad personal credit have additional options. Revenue-based working capital and business lines of credit underwritten on business cash flow — not personal FICO — may be accessible when personal credit is the constraint. Apply with ClearValue Lending to route to the right business funding path.

Avoid credit-line products with hidden fees

Some lenders targeting bad-credit borrowers bury origination fees, monthly maintenance fees, and draw fees that raise the effective APR well above the stated rate. The CFPB recommends reading the full Schumer Box and asking for the total annual cost — not just the APR — before accepting any credit line offer.

Sources

The CFPB's consumer credit resources explain secured credit lines, how they differ from unsecured products, and how security deposits protect lenders and enable access for thin-file borrowers. — CFPB — Consumer Tools: Credit
The Federal Reserve's Survey of Consumer Finances tracks household credit access by credit score range, showing that secured products and credit-union unsecured lines are the dominant products accessible to below-580-FICO households. — Federal Reserve — Survey of Consumer Finances
myFICO defines 'poor' credit as scores below 580, 'fair' as 580–669, and notes that lenders can legally charge higher rates for higher perceived risk under risk-based pricing standards. — myFICO — Credit Score Ranges
The FTC's consumer guidance on credit products notes that lenders extending credit to high-risk borrowers may charge significantly higher APRs, and that comparing the APR — not just the monthly payment — is critical to evaluating cost. — FTC — Consumer Credit Guidance

Key takeaways

Secured credit lines (backed by deposit or collateral) are available even with FICO below 580; unsecured lines typically require 580+.
Credit unions offer the most borrower-friendly terms for bad-credit credit lines — check them first.
Typical bad-credit credit lines: $300–$5,000 limit, 10–36% APR depending on security and lender.
A 6–12 month secured card strategy can lift scores into the unsecured-eligible range.
Business owners with bad personal credit may qualify for revenue-based business lines underwritten on cash flow, not personal FICO.
Related: What Is a Personal Line of Credit? | How to Improve Your Credit Score | What Affects Your Credit Score?