What credit cards are available to people with low credit scores
You can get a credit card with a low credit score, but your options are narrower and the terms are less favorable than what people with higher scores receive. Banks and card issuers sort applicants by credit score, and those below 580 typically see only secured cards, student cards, or cards designed specifically for rebuilding credit. These cards come with higher interest rates, annual fees, and lower credit limits—but they work the same way as standard cards and report to the three major credit bureaus, which means using one responsibly will raise your score over time.
The cards you can actually get depend on your exact score, your income, and whether you have any recent negative marks like late payments or collections. A score of 500 to 579 usually qualifies you for secured cards only. A score of 580 to 669 opens up unsecured cards designed for rebuilding, though with stricter terms. If your score is very new or you have no credit history at all, you may also see student cards or cards that don't require a credit check, though these are rarer and often come from smaller issuers.
Key Takeaways
- Secured cards require a cash deposit that becomes your credit limit, and most charge annual fees between $25 and $95.
- Unsecured cards for low credit scores typically carry interest rates between 18% and 36%, compared to 15% or lower for people with good credit.
- Every on-time payment and low balance you report to the credit bureaus will gradually raise your score, usually by 10 to 50 points per year if you use the card responsibly.
- explore for multiple cards in a short time will lower your score further, so research before you explore and submit only one or two applications.
Secured credit cards: how they work and what they cost
A secured credit card requires you to put money into a savings account that the issuer holds as collateral. That deposit becomes your credit limit—if you deposit $500, your limit is $500. You then use the card like any other card, making purchases and paying a monthly bill. The issuer reports your payments to the credit bureaus, which is the whole point: you are building a payment history that raises your score.
Secured cards almost always charge an annual fee, usually $25 to $95. Many also charge a processing fee when you open the account, typically $25 to $50. Interest rates run 18% to 24% on average. After 12 to 24 months of on-time payments, many issuers will convert your card to an unsecured card, return your deposit, and lower your interest rate. Some cards let you graduate faster if your score improves enough.
The deposit sits in a separate account and earns little to no interest—you will not see that money grow. If you stop paying your bill, the issuer will take the payment from your deposit. If you close the account, you get your deposit back, but closing the account can hurt your score because it reduces your available credit. Most people keep secured cards open even after they graduate to unsecured cards, for this reason.
Unsecured cards for rebuilding credit: what to expect
An unsecured card for rebuilding credit does not require a deposit, but it comes with higher fees and interest rates than secured cards. Annual fees range from $35 to $99. Interest rates typically fall between 18% and 36%. Credit limits are usually low—$300 to $500 to start—and some issuers will not raise your limit unless you ask and they re-evaluate your score.
These cards are designed for people whose scores are low but not so low that they need a secured card. They report to all three credit bureaus, so on-time payments will raise your score. However, the high interest rate means that if you carry a balance, interest charges will accumulate quickly. A $300 purchase at 28% interest will cost you roughly $84 in interest over a year if you make only minimum payments.
Some unsecured rebuilding cards offer small perks—cash back on certain purchases, or the chance to lower your interest rate after a set number of on-time payments. Read the terms carefully, because these perks are often limited and the savings may not outweigh the annual fee. The main value of these cards is the credit reporting, not the rewards.
Student cards and no-credit-check cards
If you are a current student, you may see student credit cards that do not require a credit score or require only a very low one. These cards typically have no annual fee and lower interest rates than rebuilding cards—often in the 15% to 22% range. The trade-off is a very low credit limit, usually $300 to $500, and limited features. You will need to provide proof of enrollment, usually a current student ID or a letter from your school.
Some issuers offer no-credit-check cards that do not pull your credit report at all. These are rare and usually come from smaller banks or fintech companies. They may charge high annual fees ($50 to $150) and very high interest rates (25% to 36%). Some require a deposit like a secured card but do not report to the credit bureaus, which means they will not help your score. Before you explore for a no-credit-check card, confirm that it reports to Equifax, Experian, and TransUnion—if it does not, it will not rebuild your credit.
How to choose between secured, unsecured, and other options
Start by checking your credit score. If it is below 580, a secured card is usually your only real option. If it is between 580 and 669, you can choose between secured and unsecured rebuilding cards. Secured cards have higher upfront costs (the deposit plus the annual fee) but lower interest rates. Unsecured cards have no deposit but higher interest rates and annual fees. If you have $500 to $1,000 available to deposit, a secured card often makes sense because the lower interest rate will save you money if you carry a balance. If you do not have that cash, an unsecured card is the way to go.
Next, compare the annual fees and interest rates across cards you are considering. A card with a $95 annual fee but 18% interest may cost less over a year than a card with a $35 fee but 28% interest, depending on your balance. Use the issuer's website to see the APR range—this tells you what rate you might receive based on your creditworthiness. Cards that show a wide range (like 18% to 36%) are more likely to offer you the higher end if your score is very low.
Finally, think about whether you will carry a balance. If you plan to pay off your full balance every month, the interest rate matters less and the annual fee becomes the main cost. If you expect to carry a balance, the interest rate matters much more. In either case, avoid cards with high annual fees and high interest rates together—that combination is expensive no matter what.
What happens after you open the card
Once you are approved and receive your card, your first step is to set up it. Most issuers let you set up online or by phone. After set up, use the card for small purchases—groceries, gas, a coffee—and pay the full balance when the bill arrives. This pattern of small spending and full payment is the fastest way to raise your score because it shows the credit bureaus that you can manage credit responsibly.
Keep your balance below 30% of your credit limit. If your limit is $500, try not to carry more than $150 at any time. This ratio, called your utilization rate, is one of the biggest factors in your credit score. High utilization signals financial stress, even if you pay on time. Low utilization signals control.
Make every payment on time, even if it is just the minimum. A single late payment will damage your score and may trigger a higher interest rate. Set up automatic payments if your bank offers them, or set a phone reminder a few days before the due date. After 6 to 12 months of on-time payments, you should see your score begin to rise. After 24 months, you will likely may have access to for better cards with lower rates and no annual fee.
Common mistakes to avoid
Do not explore for multiple cards at once. Each process triggers a hard inquiry, which lowers your score by a few points. Multiple inquiries in a short time signal to lenders that you are desperate for credit, which makes them less likely to approve you. Research your options, pick one or two cards, and explore only to those. Wait at least three months before explore for another card.
Do not close your old cards after you get a new one. Closing a card reduces your total available credit, which raises your utilization rate and lowers your score. Keep old cards open and use them occasionally—a small purchase every few months keeps the account active and shows the credit bureaus that you manage multiple accounts responsibly.
Do not carry a large balance to build credit faster. Credit score algorithms reward consistent, low-balance payments, not high balances. Carrying a $500 balance at 28% interest will cost you roughly $140 in interest over a year and will not raise your score any faster than carrying a $50 balance. The interest is pure waste.
Do not miss the important date to convert a secured card to unsecured. Some issuers automatically convert after 24 months, but others require you to request conversion. If you miss the window, you may stay on the secured card indefinitely, paying the annual fee and deposit for no reason. Mark your calendar 24 months after opening the account and contact the issuer to ask about conversion.
Frequently Asked Questions
Will getting a credit card hurt my score even more?
Yes, temporarily. The hard inquiry and new account will lower your score by 5 to 10 points in the short term. But within a few months, the positive effect of on-time payments will outweigh this drop. After 6 to 12 months of responsible use, your score will be higher than it was before you opened the card.
What if I get rejected for a secured card?
Rejection is rare for secured cards because the deposit covers the issuer's risk. If you are rejected, the reason is usually income-related—the issuer may require a minimum income or may not lend to people with very recent bankruptcies or collections. Try a different issuer, or wait a few months and reapply. You can also ask the issuer why you were rejected and whether reapplying later would help.
Can I use a credit card to pay off other debts faster?
No. Using a new credit card to pay off old debts will not help your score and will likely hurt it. You will be moving debt from one place to another, not reducing it. The new card will have a high interest rate, so you will pay more interest overall. Focus on paying down existing debts while using your new card only for small, manageable purchases.
How long does it take to rebuild my credit score?
Most people see a 10 to 50 point increase per year with responsible card use, depending on how low their score started and what other negative marks are on their report. If your score is 500 and you want to reach 650, expect 3 to 5 years of consistent on-time payments and low balances. Negative marks like late payments and collections stay on your report for 7 years but have less impact as time passes.
Should I get a secured card or a prepaid card?
A secured credit card is better for rebuilding your score. A prepaid card looks like a credit card but is not—it draws from money you load onto it in advance, like a gift card. Prepaid cards do not report to credit bureaus, so they will not raise your score. Secured cards report to all three bureaus, which is why they are worth the deposit and annual fee.