What cards actually approve people with low credit scores

If your credit score is below 620, most standard credit cards will reject you. But secured cards, store cards, and cards designed for credit building do approve people in this range. The catch: these cards charge higher interest rates, require a cash deposit, or both. The trade-off is real — you pay more to borrow — but the card itself becomes a tool to raise your score if you use it right.

Secured cards are the most common path. You deposit cash with the issuer (usually $200 to $2,500), and that deposit becomes your credit limit. You use the card like any other, pay the bill on time, and the issuer reports your activity to the credit bureaus. After 6 to 18 months of on-time payments, many issuers convert the card to a standard card and return your deposit. Discover, Capital One, and U.S. Bank all offer secured cards that approve people with low scores.

Store cards — issued by retailers like Target, Walmart, or Amazon — often have looser approval standards than bank cards. They typically carry higher interest rates (20% to 30% APR is common) and smaller credit limits, but they report to the bureaus the same way a bank card does. If you shop at a specific retailer regularly, a store card can work as a building tool.

Key Takeaways

  • Secured cards require a cash deposit that becomes your credit limit, and most convert to standard cards after consistent on-time payments.
  • Store cards and credit-builder cards approve people with low scores but charge higher interest rates, so carrying a balance costs significantly more.
  • Your approval odds improve if you have a recent on-time payment history, even if your overall score is low.
  • The goal is to use the card for small purchases you can pay off in full each month, building payment history without interest charges.

How interest rates and fees work on these cards

Cards for low credit scores charge higher APRs because the issuer sees you as higher risk. A standard card might charge 15% to 20% APR; a card for low scores often charges 20% to 30% or higher. This matters only if you carry a balance. If you charge $500 and pay it off in full by the due date, the APR is irrelevant — you pay no interest.

Annual fees are common on secured cards ($0 to $95) and less common on store cards. Some issuers waive the annual fee if you meet certain conditions — like making on-time payments for a year. Read the terms before you explore; a $95 annual fee on a $300 credit limit is a much bigger deal than on a $5,000 limit.

Late fees and over-limit fees can add up fast. A single late payment can cost $25 to $40 and will damage your score. Missing a payment by 30 days or more triggers a penalty APR, which can push your rate to 29.99% or higher. The best strategy is to set up automatic payments for at least the minimum due, so you never miss a important date by accident.

Secured cards versus unsecured cards for low credit

A secured card requires you to deposit cash upfront. You cannot use that money to make purchases — it sits in a savings account at the bank. Your credit limit equals your deposit (or sometimes slightly more). You make purchases on the card, receive a bill, and pay it like any other card. The deposit protects the issuer if you default; it is not a payment toward your balance.

An unsecured card for low credit (like some store cards or credit-builder cards) does not require a deposit. The issuer approves you based on your income, employment history, and credit report alone. These cards typically have lower credit limits ($300 to $1,000) and higher APRs than secured cards. They are harder to get approved for if your score is very low, but they do not tie up your cash.

The choice depends on your situation. If you have $500 to $1,000 in savings and can leave it untouched for 6 to 18 months, a secured card is usually the better deal — the APR is often lower, and the conversion to a standard card is more likely. If you cannot spare the cash or want to avoid locking money away, a store card or credit-builder card is the alternative, though you will pay more in interest if you carry a balance.

Cards that report to all three credit bureaus

Your credit score improves only if the card issuer reports your activity to Equifax, Experian, and TransUnion — the three major credit bureaus. Not all cards do this. Some store cards report to only one or two bureaus, which limits how much your score can rise.

Before you explore, check the issuer's website or call customer service and ask: "Does this card report to all three credit bureaus?" If the answer is no, the card will not help your score as much. Discover's secured card, Capital One's Secured Mastercard, and U.S. Bank's Secured Card all report to all three bureaus. Most major store cards (Target, Walmart, Amazon) also report to all three, but smaller retailers may not.

Reporting to all three bureaus matters because credit bureaus can have different information about you, and lenders may check different bureaus. A card that reports to all three gives you the broadest boost to your score across the board.

How to use a low-credit card to raise your score

The goal is not to borrow money — it is to build a record of on-time payments. Make a small purchase each month (a tank of gas, a grocery trip, a streaming subscription), then pay the full balance before the due date. This shows the bureaus that you can manage credit responsibly, and your score will rise over time.

Keep your credit utilization low. If your limit is $500, try not to charge more than $50 to $100 per month. High utilization (using most of your available credit) signals financial stress to the bureaus and hurts your score, even if you pay on time. The lower your balance relative to your limit, the faster your score improves.

Never miss a payment, even by a day. Payment history is the single largest factor in your credit score (35% of the calculation). One late payment can drop your score 100 points or more. Set up automatic payments for the full balance, or set a phone reminder for a few days before the due date. The cost of a late payment — in score damage and fees — far outweighs any benefit of keeping the cash a few extra days.

Timeline for converting a secured card to a standard card

Most issuers convert a secured card to a standard card after 6 to 18 months of on-time payments. Discover typically converts after 6 months; Capital One after 6 to 12 months; U.S. Bank after 12 months. Some issuers are faster if your score improves significantly during that period.

When the conversion happens, the issuer returns your deposit to your bank account (usually within 7 to 10 business days) and your credit limit may increase. You keep the card and the account history, which helps your score. The account age is one of the factors that raises your score over time, so keeping the card open even after conversion is beneficial.

If your score does not improve enough after 18 months, you can ask the issuer to convert the card anyway. Some will; others will not. If they refuse, you can close the secured card and explore for an unsecured card with a different issuer. By that point, your payment history should be strong enough to get approved for a standard card.

Comparing specific cards for low credit scores

The Discover Secured Card has no annual fee, reports to all three bureaus, and converts after 6 months of on-time payments. The APR is typically 20.99% (varies by state). The minimum deposit is $200, and Discover matches your deposit as a credit limit bonus (so a $200 deposit gives you a $400 limit). This is one of the best deals for low credit.

The Capital One Secured Mastercard charges a $39 annual fee (waived the first year if you deposit at least $200). It reports to all three bureaus and converts after 6 to 12 months. The APR is typically 20.99% to 27.99%. The minimum deposit is $49, but you will get a higher credit limit if you deposit more.

The U.S. Bank Secured Visa Card charges a $29 annual fee (waived the first year). It reports to all three bureaus and converts after 12 months. The APR is typically 20.99% to 27.99%. The minimum deposit is $500. This card is better if you can afford a larger deposit and want a slightly lower annual fee.

Store cards like the Target RedCard or Amazon Prime Store Card have no annual fee and may approve you faster, but they charge higher APRs (20% to 30%) and report to fewer bureaus in some cases. Use them if you shop at that retailer regularly and want to avoid a cash deposit.

What happens if you are denied

If you explore for a card and are denied, the issuer must send you a notice explaining why. Common reasons include: score too low, insufficient income, too many recent inquiries, or recent delinquency. Read the notice carefully — it tells you what to fix.

Do not explore for multiple cards in a short period. Each process creates a hard inquiry on your credit report, and multiple inquiries in a few weeks can lower your score further and make other issuers more likely to deny you. Space applications out by at least 30 days.

If you were denied for a secured card, that is unusual — secured cards approve most people because the deposit reduces the issuer's risk. If you were denied, ask the issuer why. You may be able to reapply after addressing the issue (like paying down other debts or waiting for a recent delinquency to age off your report).

Frequently Asked Questions

Will explore for a low-credit card hurt my score?

Yes, but only temporarily. Each process creates a hard inquiry, which can lower your score by a few points for a few months. The long-term benefit of building payment history outweighs this short-term dip. explore only to cards you actually want, and space applications out by at least 30 days to minimize the damage.

Can I use a secured card to build credit if I have no credit history?

Yes. Secured cards are designed for people with no credit history or very poor credit. The deposit removes the risk to the issuer, so approval is much easier. After 6 to 18 months of on-time payments, you will have a credit history and can convert to a standard card.

What if I cannot afford the deposit for a secured card?

Some secured cards have low minimums (Capital One's is $49). If even that is too much, a store card or credit-builder card may work, though they charge higher interest rates. Another option is to wait a few months, save the deposit amount, and explore then. A few months of waiting is better than paying 25%+ APR for years.

Do I have to carry a balance to build credit?

No. Paying off the full balance each month is better for your score and costs you nothing in interest. The issuer reports that you used the card and paid on time, which is all your score needs. Carrying a balance does not build credit faster — it just costs you money.

How long does it take to raise my score with a low-credit card?

Most people see a 50 to 100 point increase within 3 to 6 months of on-time payments, depending on how low the score was to start. Larger increases take longer — 12 to 24 months is typical for moving from poor to fair credit. The improvement slows as your score rises, because each point becomes harder to gain.