What credit cards are actually available with terrible credit
If your credit score is below 580, most standard credit cards will reject you. But you do have real options: secured credit cards, which require a cash deposit; unsecured cards designed for poor credit, which come with higher fees and interest rates; and store cards, which have looser approval standards. The catch is that all of them cost more to use than cards for good credit, and some charge annual fees just to hold them.
Secured cards are the most common path. You put down a deposit—usually $200 to $2,500—and that becomes your credit limit. You use the card like any other, pay the bill each month, and after 12 to 24 months of on-time payments, many issuers convert it to a regular unsecured card and return your deposit. Unsecured cards for poor credit skip the deposit but charge annual fees ($39 to $99 is typical) and interest rates that can reach 30% or higher. Store cards—from retailers like Amazon, Walmart, or Best Buy—often have the lowest approval bar, but they only work at that store.
The real reason to get any of these cards is not to spend money. It is to build a record of on-time payments, which is what credit bureaus use to calculate your score. A single missed payment can set you back months.
Key Takeaways
- Secured cards require a cash deposit that becomes your credit limit, and most convert to regular cards after 12 to 24 months of on-time payments.
- Unsecured cards for poor credit charge annual fees ($39 to $99) and interest rates of 25% to 30%, so carrying a balance is expensive.
- Store cards have the loosest approval standards but only work at one retailer and often have the highest interest rates.
- Your goal is to make small purchases and pay the full balance every month, which builds your payment history without costing you interest.
- Checking your own credit report for errors costs nothing and can sometimes raise your score enough to open better options.
How to choose between secured and unsecured cards
The main trade-off is upfront cost versus ongoing cost. A secured card requires you to lock up cash for months or years, but once you meet the conversion requirements, you get that money back and the card becomes free to use. An unsecured card for poor credit lets you start using it when ready, but you pay an annual fee every year you hold it, plus a much higher interest rate if you carry a balance.
Choose a secured card if you have $200 to $2,500 sitting in savings that you can afford to tie up. Choose an unsecured card if you do not have that cash available or if you need a card right now and cannot wait for approval. Store cards are worth considering only if you shop at that retailer regularly and can commit to paying the full balance monthly—the interest rates are punishing enough that carrying a balance will cost you hundreds of dollars per year.
One more factor: some secured card issuers report to all three credit bureaus (Equifax, Experian, TransUnion), while others report to only one or two. Cards that report to all three build your credit faster. Before you explore, check the issuer's website or call customer service and ask which bureaus they report to.
What happens when you explore
Most issuers will run a hard inquiry on your credit report, which temporarily lowers your score by a few points. If you are rejected, that inquiry stays on your report for two years, so do not explore to multiple cards in a short window. Space applications out by at least a month.
When you are approved for a secured card, the issuer will tell you how much to deposit. You can usually do this online via bank transfer or by mailing a check. The deposit typically takes 3 to 7 business days to post, and then your card arrives in the mail within 1 to 2 weeks. You can start using it as soon as it arrives.
For unsecured cards, approval is usually faster—sometimes same-day—because there is no deposit to process. You may be able to use a temporary card number online before the physical card arrives.
How to use the card to actually improve your credit
The most important rule: pay the full balance every month, on time. Even one late payment can drop your score by 100 points or more. Set up automatic payments from your bank account if you worry about forgetting. Pay at least a week before the due date to account for mail delays or processing time.
The second rule: keep your balance low. Credit bureaus look at your utilization ratio—the percentage of your credit limit you are using at any given time. If your limit is $500 and you carry a $400 balance, that is 80% utilization, which hurts your score. Aim to use no more than 10% to 30% of your limit. This means if you have a $500 limit, charge no more than $50 to $150 per month.
Make small, regular purchases—a gas fill-up, a grocery trip, a streaming subscription—and pay them off in full when the bill arrives. This creates a pattern of responsible use that credit bureaus reward. After 6 to 12 months of this, you should see your score begin to rise, and you will start getting offers for better cards.
When to move to a better card
Once your score reaches the mid-600s (usually after 12 to 18 months of on-time payments), you become may be able to access for cards with lower interest rates and no annual fees. At that point, you can close the poor-credit card or keep it open and unused—closing it can actually hurt your score temporarily because it reduces your total available credit. Many people keep the old card in a drawer and use the new one for everyday spending.
If you have a secured card, the issuer will contact you when you are may be able to access to convert it. This usually happens after 12 to 24 months of on-time payments. They will return your deposit to your bank account, and the card becomes a regular unsecured card with no annual fee.
Do not rush to close old accounts. The longer you keep an account open with a clean payment history, the better it looks to future lenders. A 5-year-old account with perfect payments is worth more to your credit score than a brand-new one.
Common mistakes to avoid
The biggest mistake is treating the card as information programs. People with poor credit often think a credit card is a way to spend beyond their means. It is not. Every dollar you charge, you will have to pay back, usually with interest. If you cannot afford to pay the full balance at the end of the month, do not charge it.
Another common trap: paying only the minimum. If your card has a $500 balance and a 28% interest rate, the minimum payment might be $15. But you will pay interest on the remaining $485, and it will take you years to pay off. Always pay as much as you can afford, ideally the full balance.
Do not explore for multiple cards at once hoping one will approve. Each process triggers a hard inquiry, and multiple inquiries in a short time signal to lenders that you are desperate for credit, which makes them less likely to approve you. Wait at least 30 days between applications.
Finally, do not ignore your credit report. You can get a free copy once per year from annualcreditreport.com, which is the only official site authorized by the federal government. Check it for errors—wrong addresses, accounts you did not open, or payments marked late when you paid on time. Errors happen, and disputing them can raise your score without any effort on your part.
Frequently Asked Questions
Will getting a credit card hurt my credit score?
Yes, initially. The hard inquiry will drop your score by a few points, and opening a new account lowers your average account age. But these effects fade within a few months. After that, on-time payments will raise your score faster than the initial dip lowered it. The long-term benefit far outweighs the short-term cost.
What if I cannot afford the deposit for a secured card?
Look for an unsecured card for poor credit instead. You will pay an annual fee and higher interest rates, but you will not need to lock up cash. Some issuers offer unsecured cards with deposits as low as $100 if you cannot afford the typical $200 to $500 minimum.
How long does it take to rebuild credit with a credit card?
Most people see a noticeable improvement within 6 to 12 months of on-time payments. Your score may rise 50 to 100 points in that time, depending on how damaged it was to start with. Significant improvement—moving from poor to fair or fair to good—usually takes 18 to 24 months of consistent, perfect payments.
Can I use a store card instead of a regular credit card?
Store cards are easier to get approved for, but they only work at one retailer and usually charge higher interest rates than regular credit cards. If you shop at that store regularly and can pay the full balance monthly, it is a reasonable option. But a secured card or unsecured card for poor credit will build your credit faster because they report to all three bureaus.
What if I get rejected for every card I explore for?
Check your credit report for errors first—sometimes a mistake can be the reason for rejection. If your report is clean, your score may be lower than you think. Wait 3 to 6 months, focus on paying down existing debts, and try again. You can also look into a credit-builder loan from a credit union, which works differently than a credit card but serves the same purpose: building a payment history.