What credit cards are available to people with low credit scores
If your credit score is below 620, most standard credit cards will reject your process. The cards that will consider you fall into two categories: secured credit cards, which require a cash deposit, and unsecured cards designed for rebuilding credit, which don't require a deposit but come with higher interest rates and lower credit limits. Both types report to the three major credit bureaus, so using them responsibly will raise your score over time.
Secured cards are the most common path. You deposit money into a savings account held by the card issuer—typically $200 to $2,500—and that amount becomes your credit limit. You use the card like any other, paying a monthly bill. After 6 to 18 months of on-time payments, many issuers will convert your account to an unsecured card and return your deposit.
Unsecured cards for low credit exist but are rarer. They skip the deposit requirement but charge annual fees ($39 to $99 is typical) and APRs often above 20%. You'll also get a lower starting limit, usually $300 to $500. These cards make sense only if you can't save a deposit right now.
Key Takeaways
- Secured credit cards require a cash deposit equal to your credit limit but are easier to get approved for than unsecured cards.
- Unsecured cards for low credit skip the deposit but charge higher annual fees and interest rates, making them more expensive to carry a balance on.
- Both types report to credit bureaus, so consistent on-time payments will raise your score within 6 to 12 months.
- Your credit limit on either type will be low at first, usually $300 to $2,500, but can increase after a year of good payment history.
- Avoid cards that charge upfront fees before you're approved, as these are often predatory and waste your money.
How secured credit cards work
You open a savings account with the card issuer and deposit cash. That deposit sits in the account untouched—you cannot withdraw it while the card is active. The card issuer uses that deposit as collateral, so they take almost no risk if you stop paying. This is why they'll approve you even with a low score.
You then use the card to make purchases, just like a regular credit card. You receive a monthly statement and pay a bill. If you carry a balance, you'll pay interest on it, typically 18% to 24% APR. The deposit itself does not earn interest at most issuers, though a few offer a small percentage.
After you've made on-time payments for 6 to 18 months—the timeline varies by issuer—the card issuer will review your account. If your payment history is clean, they'll convert the card to unsecured status, return your deposit, and may raise your credit limit. Some issuers do this automatically; others require you to request it.
Unsecured cards for low credit and their costs
These cards don't require a deposit, but they charge for the risk. Annual fees range from $39 to $99, and APRs typically start at 20% or higher. Your starting credit limit will be low—often $300 to $500—and you may face additional fees for late payments or going over your limit.
The math matters here. If you carry a $500 balance on a card with a 24% APR and a $75 annual fee, you'll pay roughly $120 in interest and fees per year just to hold that debt. That's 24% of your balance in costs alone. Unsecured cards for low credit are most useful if you plan to pay your full balance every month and only need the card to build history.
Some unsecured cards marketed to low-credit borrowers are predatory. Avoid any card that charges an upfront fee before approval, charges a fee just to receive your credit limit, or charges monthly maintenance fees. Legitimate cards charge an annual fee only, and only after you're approved.
Comparing secured and unsecured cards side by side
| Feature | Secured Card | Unsecured Low-Credit Card |
|---|---|---|
| Deposit required | Yes, $200–$2,500 | No |
| Annual fee | $0–$95 | $39–$99 |
| Starting APR | 18%–24% | 20%–29% |
| Starting credit limit | $200–$2,500 | $300–$500 |
| Approval odds | Very high | High |
| Path to unsecured status | 6–18 months of on-time payments | Usually stays unsecured |
Steps to get approved for a low-credit card
First, decide whether you can save a deposit. If you have $200 to $500 available, a secured card is almost always the better choice—lower APR, no annual fee, and a clear path to unsecured status. If you cannot save that amount right now, an unsecured card is your option, though it will cost more.
Next, gather what you'll need. Have your Social Security number, current address, phone number, and employment information ready. For a secured card, you'll also need to fund the deposit account, which usually happens online or by check. For an unsecured card, you just need to complete the process.
Search for cards that match your situation. Look at the issuer's stated minimum credit score requirement—some secured cards say they accept scores as low as 300, while others want 550 or higher. Read the terms for the APR, annual fee, and the timeline for converting to unsecured status if you're explore for a secured card. Then submit your process online.
You'll get a decision within a few days to a week. If approved, you'll receive the card in the mail within 7 to 10 business days. For a secured card, fund your deposit account as instructed—this usually happens before the card arrives. Once you have the card, set up it and make a small purchase to confirm it works.
Building credit with a low-credit card
The card only helps your score if you use it responsibly. Make a small purchase each month—a gas fill-up, a coffee, a subscription—and pay the full balance when the bill arrives. This shows the credit bureaus that you can borrow and repay reliably. Paying in full also means you avoid interest charges.
Never miss a payment, even by a day. A single late payment can drop your score by 100 points or more and will stay on your report for seven years. Set up automatic payments for at least the minimum due, or set a phone reminder a few days before the due date.
Keep your balance low relative to your credit limit. If your limit is $500, try not to carry more than $50 to $100 at any time. This ratio—called your utilization rate—affects your score. The lower it is, the better. After 6 to 12 months of on-time payments and low utilization, you should see your score rise by 50 to 100 points.
When to move beyond your first low-credit card
Once your score reaches 650 or higher, you become may be able to access for standard credit cards with better terms. At that point, you can close your low-credit card or keep it open and inactive. Closing it will lower your available credit and may hurt your score slightly, so many people keep the account open even after they no longer use it.
If you have a secured card, the issuer may offer to convert it to unsecured automatically. If not, request the conversion after 12 to 18 months of perfect payments. Once converted, your deposit will be returned to you, usually within 7 to 10 business days.
Don't explore for multiple new cards at once. Each process triggers a hard inquiry on your credit report, which can lower your score by a few points. Space applications out by at least three months. Focus on using your current card well, and better offers will come to you as your score improves.
Frequently Asked Questions
Will a low-credit card hurt my score when I first open it?
Yes, slightly. The hard inquiry and new account will lower your score by a few points initially. But this dip is temporary. Within a few months of on-time payments, your score will recover and then climb higher than it was before you opened the card.
Can I use a secured card if I don't have $200 saved?
Some issuers allow deposits as low as $200, but a few require $500 or more. If you cannot save that amount, an unsecured low-credit card is your option. You could also wait a few months while you save, then open a secured card—the wait is often worth the lower cost.
What happens if I can't pay my bill one month?
Contact your card issuer when ready and ask about hardship options. Many will work with you on a payment plan. If you miss the payment, it will be reported to the credit bureaus and will lower your score. Late fees will also be added to your balance. Avoid this by setting up automatic minimum payments if you're worried about forgetting.
How long does it take to rebuild my credit with one card?
Most people see a 50 to 100 point increase within 6 to 12 months of on-time payments and low balances. Reaching 650 or higher—where you may have access to for standard cards—typically takes 12 to 24 months, depending on how low your starting score was and whether you have other negative marks on your report.
Should I carry a balance to build credit faster?
No. Carrying a balance costs you money in interest and doesn't build credit any faster than paying in full. Pay your full balance every month. Your payment history and low utilization are what matter to your score, not whether you carry debt.