What credit cards are available to people with low credit scores

If your credit score is below 620, most mainstream credit cards will decline you. But you have real options: secured cards, store cards, and cards designed for rebuilding credit all accept lower scores. The catch is higher interest rates, lower credit limits, and annual fees. The trade-off is that these cards report to the three major credit bureaus, so on-time payments actually move your score upward over months.

The card you choose depends on what you can afford upfront and how you plan to use it. A secured card requires a cash deposit that becomes your credit limit — you might put down $500 and get a $500 limit. Store cards (like Target or Amazon) often have looser approval standards but only work at one retailer. Cards marketed as "bad credit" cards exist but vary wildly in cost and terms.

The goal is not to find the perfect card. The goal is to pick one you can afford, use responsibly for six to twelve months, and then move to something better. Your score will improve if you keep your balance low and pay on time, even with a card that costs more.

Key Takeaways

  • Secured cards require a cash deposit but report to credit bureaus and often graduate to unsecured cards after six to twelve months of on-time payments.
  • Store cards and gas station cards have lower approval standards than bank cards but only work at that one merchant.
  • Interest rates on low-credit cards range from 18% to 36%, so carrying a balance costs significantly more than it would on a standard card.
  • Annual fees on these cards range from $0 to $95, and some charge additional fees for late payments or going over your limit.
  • Your payment history matters more than the card itself — any card you use responsibly will improve your score over time.

Secured credit cards: how they work and which ones to compare

A secured card is the most common path for people rebuilding credit. You deposit money into a savings account held by the card issuer. That deposit becomes your credit limit. If you deposit $500, you get a $500 limit. You then use the card like any other card, make payments, and the issuer reports your activity to Equifax, Experian, and TransUnion.

The deposit is not a fee — it stays in the account and you get it back. But the issuer holds it as collateral, so you cannot touch it while the account is open. You pay interest on any balance you carry, just like a regular card. After six to twelve months of on-time payments, many issuers will convert your account to an unsecured card and return your deposit.

Compare secured cards on three things: the interest rate (APR), the annual fee, and the conversion path. The Capital One Secured Mastercard charges no annual fee and converts after six months of on-time payments. The Discover Secured Card also has no annual fee and reports to all three bureaus. The OpenBank Secured Visa charges $35 annually but accepts applicants with scores below 600. None of these are "best" — they are best for different situations. If you have $500 to deposit and can pay on time, any of them will work.

Store cards and gas station cards: faster approval, narrower use

Store cards like the Target RedCard, Amazon Prime Store Card, and Walmart Capital One card approve people with lower scores than bank cards do. They also tend to have higher credit limits relative to your score. The trade-off is that you can only use them at that one store or chain.

Gas station cards (Shell, Chevron, Speedway) work the same way. They approve lower scores, but you can only charge gas and in-store purchases at that pump. Interest rates on store cards typically run 18% to 24%, which is lower than dedicated bad-credit cards but higher than mainstream cards.

Store cards make sense if you already shop at that retailer regularly. If you get a Target card and shop there weekly, you build credit history while you spend money you were going to spend anyway. But do not open a store card just to have a card. Opening an account you will not use does not help your score and costs you a hard inquiry.

Cards marketed for bad credit: what to watch for

Cards with names like "Credit One Bank Unsecured Visa" or "Milestone Mastercard" are designed for people with low scores and do not require a deposit. But they come with costs that secured cards do not. Most charge annual fees between $39 and $95. Many charge additional fees: $25 to $35 for a late payment, $25 to $39 for going over your limit, and sometimes a monthly maintenance fee on top of the annual fee.

Before you explore, read the fee schedule on the issuer's website. Add up the annual cost: annual fee plus the fees you are likely to pay. If the card charges $95 annually plus a $35 late fee, and you think there is a chance you will miss a payment, the real cost is $130 or more in year one. A secured card with no annual fee and no late fees is almost always cheaper.

These cards do report to credit bureaus, so they will improve your score if you use them responsibly. But you are paying for the privilege of rebuilding. A secured card lets you rebuild without the extra fees.

Interest rates and how they affect what you owe

Credit cards for low scores charge between 18% and 36% APR. That is the annual interest rate on any balance you carry from month to month. If you carry a $500 balance on a card with 24% APR, you pay roughly $10 per month in interest alone. Over a year, that $500 balance costs you $120 in interest if you only make minimum payments.

The difference between a 18% card and a 36% card is significant. On that same $500 balance, 36% APR costs you $18 per month in interest, or $216 per year. Over time, the lower rate saves you hundreds of dollars.

This is why carrying a balance on these cards is expensive. If you can pay off your statement balance in full each month, the interest rate does not matter — you pay no interest at all. If you cannot, look for the lowest APR you can get approved for, and plan to pay the balance down as quickly as possible.

How to use a low-credit card to actually improve your score

Getting the card is the first step. Using it correctly is what moves your score. The two things that matter most are payment history (35% of your score) and credit utilization (30% of your score).

Payment history means paying on time, every time. Set up automatic payments for at least the minimum due, or better yet, the full statement balance. Missing even one payment will damage your score and trigger late fees. On-time payments for six months start to show up in your score. After twelve months, the improvement is usually noticeable.

Credit utilization is the percentage of your limit that you are using. If your limit is $500 and your balance is $250, your utilization is 50%. Aim to keep it below 30%. If your limit is $500, keep your balance under $150. This shows lenders you can borrow money without maxing out. High utilization (above 70%) signals financial stress and hurts your score, even if you pay on time.

The simplest approach: use the card for one small recurring charge (like a streaming service or gas) and pay it off in full each month. You build history, keep utilization low, and pay no interest. After six to twelve months, your score will improve enough to open doors to better cards.

When to move from a low-credit card to something better

After six to twelve months of on-time payments, your score will likely move into the 620–660 range. At that point, you become may be able to access for mainstream cards with better terms. A card like the Chase Freedom Flex or Capital One Quicksilver has no annual fee, lower interest rates, and cash back rewards. You do not have to wait until your score is perfect — you can start explore once you hit 620.

When you move to a better card, you can close the old one or leave it open with a zero balance. Closing it removes available credit from your profile and can temporarily hurt your score. Leaving it open helps your utilization ratio and keeps your credit history longer. If the old card has an annual fee, close it. If it has no annual fee, leave it open.

Do not explore for multiple new cards at once. Each process is a hard inquiry, and multiple inquiries in a short time signal desperation to lenders and hurt your score. Space applications out by at least three months.

Frequently Asked Questions

Will a secured card hurt my credit score when I explore?

The process itself causes a hard inquiry, which temporarily lowers your score by a few points. But the inquiry fades after three months and disappears after two years. The benefit of building positive payment history outweighs the temporary dip. If your score is already very low (below 550), wait a month or two if you can, but do not avoid explore indefinitely.

What happens if I miss a payment on a low-credit card?

You will be charged a late fee (usually $25–$35), your interest rate may increase, and the missed payment will be reported to the credit bureaus. One missed payment can drop your score 50–100 points. If you miss a payment, call the issuer when ready and ask if they will waive the fee as a one-time courtesy. Then set up automatic payments so it does not happen again.

Can I use a secured card and a store card at the same time?

Yes. Using multiple cards responsibly can actually help your score because it lowers your overall utilization ratio. If you have a $500 secured card and a $300 store card, and you keep both balances under 30%, you are using only $240 of $800 available credit. But only open multiple cards if you can manage them without missing payments.

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

Most people see meaningful improvement (50–100 point increase) within six to twelve months of on-time payments. Larger improvements take longer. A score that dropped due to a recent missed payment can recover faster than a score damaged by collections or bankruptcy. Check your score every three months to track progress.

Should I get a secured card or a bad-credit card?

A secured card is almost always the better choice. It costs less (usually no annual fee), has lower interest rates, and converts to an unsecured card once you prove yourself. A bad-credit card charges more in fees and does not graduate. The only reason to choose a bad-credit card is if you cannot save $300–$500 for a deposit right now.