What cards will accept a low credit score
If your credit score is below 580, most standard credit cards will decline you. Banks that issue those cards use automated scoring systems that treat anything below 620 as high-risk. But several card types exist specifically for people rebuilding credit: secured cards, unsecured cards designed for poor credit, and store cards that use different approval criteria.
Secured cards require a cash deposit that becomes your credit limit — typically $200 to $2,500. You use the card like any other, and the deposit stays in a bank account as collateral. After 6 to 18 months of on-time payments, many issuers convert you to an unsecured card and return your deposit. Unsecured cards for poor credit skip the deposit but charge higher interest rates and annual fees. Store cards (Target, Amazon, Kohl's) often have lower approval thresholds than bank cards, though they work only at that retailer.
Key Takeaways
- Secured cards require a deposit but are the most reliable path for scores below 580, since the deposit protects the bank if you miss payments.
- Unsecured cards for poor credit exist but typically charge 25% to 36% APR and $39 to $99 annual fees, making them expensive to carry a balance on.
- Store cards approve more people with low scores but only work at one retailer and often charge higher rates than bank cards.
- Every card reports to the three credit bureaus, so on-time payments will raise your score over time regardless of which type you choose.
How secured cards rebuild your credit
A secured card works because the bank's risk is zero: if you stop paying, they keep your deposit. This lets them approve people with scores in the 500s. You deposit money, receive a card with that amount as your limit, and use it for small purchases you pay off monthly. The card issuer reports your payment history to Equifax, Experian, and TransUnion every month.
The math is straightforward: on-time payments lower your payment history risk in the credit bureaus' eyes. After 12 to 24 months of perfect payments, your score typically rises 50 to 100 points. At that point, many issuers automatically convert your card to unsecured status, return your deposit, and raise your limit. Some require you to request the conversion; check the card's terms before you open it.
The deposit is not a fee — it is your own money held in a separate account. You earn interest on it (usually 0.01% APY, which is minimal). The card itself may charge an annual fee of $0 to $25, which comes from your available credit, not your deposit.
Comparing secured cards and unsecured cards for poor credit
| Feature | Secured Card | Unsecured Card (Poor Credit) | Store Card |
|---|---|---|---|
| Deposit required | Yes, $200–$2,500 | No | No |
| Typical APR | 18%–24% | 25%–36% | 20%–29% |
| Annual fee | $0–$25 | $39–$99 | $0–$25 |
| Where you can use it | Everywhere Visa/Mastercard accepted | Everywhere Visa/Mastercard accepted | One retailer only |
| Conversion to unsecured | Usually after 12–24 months | Not applicable | Not applicable |
| Typical starting limit | $200–$500 | $300–$750 | $300–$1,000 |
Secured cards cost less to carry long-term because the APR is lower and the annual fee is smaller. If you plan to pay your balance in full each month, the difference is negligible. If you carry a balance, the 10–12 percentage point difference in APR means you pay significantly more interest on unsecured cards.
Unsecured cards for poor credit approve faster and do not tie up your cash, which matters if you do not have $200 to $500 available. But they are designed for people who cannot get approved elsewhere, so the terms reflect that risk. Store cards split the difference: they approve more people than bank cards but only work at one place.
What happens after you open a card
Your first statement will arrive 20 to 30 days after your first purchase. It will show your balance, due date, and minimum payment. Pay at least the minimum by the due date every month — missing even one payment will damage your score and may trigger a fee.
Paying the full balance is better than paying the minimum, because it avoids interest charges and keeps your credit utilization low. Credit utilization is the percentage of your limit you are using at any given time. If your limit is $500 and your balance is $100, your utilization is 20%. Keeping it below 30% helps your score. Paying in full each month keeps it at 0%.
After 6 to 12 months of on-time payments, you may see a score increase of 30 to 50 points. After 24 months, increases of 100+ points are common. The exact timeline depends on your starting score and how many other negative items are on your report (late payments, collections, charge-offs). A secured card cannot erase those items, but it can outweigh them over time as your positive payment history grows.
Specific cards that accept low credit scores
Secured cards: Capital One Secured Mastercard, Discover it Secured, and U.S. Bank Altitude Go Visa Secured are the most common. Capital One requires a minimum deposit of $200 and charges no annual fee. Discover's secured card also has no annual fee and earns 2% cash back on purchases, which is unusual for this category. U.S. Bank's card charges $25 annually but offers a higher starting limit for larger deposits.
Unsecured cards for poor credit: Credit One Bank Visa, Milestone Mastercard, and OpenSky Secured Visa are widely available. Credit One charges $39 to $99 annually depending on the version. Milestone charges $95 annually but reports to all three bureaus and converts to unsecured after 18 months of on-time payments. OpenSky is unusual because it is a secured card with no credit check — you deposit money but they do not pull your credit report, which means it will not help if you are trying to rebuild.
Store cards: Amazon Prime Visa, Target RedCard, and Kohl's Card often approve people with scores in the 550–620 range. These are issued by Synchrony Bank and report to the credit bureaus. They work only at their respective retailers, but if you shop there regularly, the approval is easier than a bank card.
Mistakes to avoid when rebuilding with a credit card
The most common mistake is carrying a balance to "show" you can handle credit. You do not need to carry a balance — paying in full every month is better for your score and costs you nothing in interest. The credit bureaus reward on-time payments, not debt. Carrying a $500 balance at 24% APR costs you $10 per month in interest alone, and it does not help your score more than paying in full would.
The second mistake is opening multiple cards at once. Each process triggers a hard inquiry, which temporarily lowers your score by 5 to 10 points. Opening three cards in a month can drop your score 15 to 30 points. Space applications at least 3 to 6 months apart so each inquiry ages and its impact fades.
The third mistake is closing the card after your score improves. Your credit history length matters — closing your oldest account can lower your score. Keep the card open even after you convert to unsecured or move to a better card. Use it for one small purchase every few months and pay it off to keep the account active.
When a credit card is not the right tool
If your score is below 500 and you have recent collections or charge-offs, a credit card alone may not move your score fast enough. In that case, a credit builder loan from a credit union may be faster. You borrow $500 to $1,000, the lender holds the money in a savings account, and you make monthly payments. After you repay it, you get the money back. The payment history rebuilds your score without the interest risk of a credit card.
If you have unpaid debts in collections, paying them off or negotiating a settlement should come before opening a new card. A new card will not erase those items, and opening new accounts while collections are active can signal desperation to lenders. Focus on stopping new damage first, then rebuild with a card.
Frequently Asked Questions
Will a credit card hurt my score when I open it?
Yes, temporarily. The hard inquiry drops your score 5 to 10 points, and opening a new account lowers your average account age. But these effects fade within 3 to 6 months. The on-time payments that follow will raise your score much more than the inquiry lowered it, so the net effect is positive over time.
Can I use a secured card at any store?
Yes, if it is a Visa or Mastercard. Secured cards from Capital One, Discover, and U.S. Bank work anywhere those networks are accepted — grocery stores, gas stations, online retailers, everywhere. Store cards work only at their specific retailer.
What if I cannot afford the deposit for a secured card?
Start with a store card if you shop at Target, Amazon, or Kohl's regularly. They approve lower scores without a deposit. Alternatively, save for a $200 deposit over a few months — that is the minimum most secured card issuers require. A credit builder loan from a credit union is another option if you want to rebuild without a credit card.
How long until my score goes up?
Most people see a 30 to 50 point increase after 6 months of on-time payments. Larger increases (100+ points) typically take 12 to 24 months. The timeline depends on your starting score, how many negative items are on your report, and whether you have other accounts reporting positive payment history.
Should I pay off my balance in full or carry a small balance?
Pay in full every month. Carrying a balance costs you interest and does not help your score more than paying in full would. The credit bureaus reward on-time payments, not debt. Paying in full every month is the fastest way to rebuild.