What credit cards are actually available to you with low credit
If your credit score is below 620, most standard credit cards will reject your process. But you have real options: secured credit cards, credit-builder cards, and cards designed for people rebuilding credit. These cards exist because lenders know that people with low scores often need to rebuild — and that responsible use of credit is how you do it.
The catch is that these cards come with higher interest rates, annual fees, or both. A secured card typically requires a cash deposit that becomes your credit limit. A credit-builder card might charge $25 to $100 annually and report to all three credit bureaus. Neither is free, but both can move your score upward within 6 to 12 months if you use them correctly.
The goal is not to use these cards forever. It is to use them long enough to prove you can handle credit responsibly, then move to a standard card with better terms. That usually takes 12 to 24 months of on-time payments.
Key Takeaways
- Secured cards require a cash deposit (usually $200 to $2,500) that acts as your credit limit, and they report to all three credit bureaus.
- Credit-builder cards charge annual fees but do not require a deposit, and some let you set your own credit limit based on what you can afford to pay monthly.
- Interest rates on these cards range from 18% to 36% APR, so carrying a balance costs significantly more than on standard cards.
- On-time payments are what moves your score — the card type matters less than using it responsibly for at least 12 months.
- Many issuers will upgrade you to a standard card and return your deposit after you demonstrate consistent payment history.
How secured credit cards work
A secured card asks you to put money into a savings account held by the card issuer. That deposit becomes your credit limit. If you deposit $500, your limit is $500. You then use the card like any other — make purchases, receive a bill, pay it — and the issuer reports your activity to Equifax, Experian, and TransUnion.
The deposit stays in the account the entire time you hold the card. You cannot touch it. If you stop paying your bill, the issuer can take the deposit to cover what you owe, but they usually do not — they would rather you pay the bill itself, because that is what builds your credit history.
After 12 to 24 months of on-time payments, many issuers will convert your account to an unsecured card, return your deposit, and give you a higher limit. Some do this automatically; others require you to request it. Check the card's terms before you explore to see what the upgrade path looks like.
Common secured card issuers include Capital One, Discover, and U.S. Bank. Annual fees range from $0 to $95. Interest rates typically fall between 18% and 24% APR. The deposit requirement means you need cash on hand, but it also means approval is nearly certain if you have the deposit.
How credit-builder cards differ from secured cards
A credit-builder card does not require a deposit. Instead, you pay an annual fee — usually $25 to $100 — and the issuer sets your credit limit based on your payment history with them. Some let you choose your limit; others start you at $200 to $500.
The card works backward from how you might expect. You do not charge purchases and then pay the bill. Instead, you decide how much credit you want to build — say, $300 — and you pay that amount upfront into a locked account. The issuer then gives you a $300 credit limit and reports your on-time payments to the three bureaus. After 12 months, they release the money to you and convert the account to a standard card.
This structure appeals to people who want to avoid the temptation to overspend. You cannot charge more than you have already paid. It also means your interest rate is less relevant, because you are not carrying a balance — you are paying in advance.
Issuers like Self, Chime, and LendingClub offer credit-builder cards. Some charge monthly fees instead of annual fees. Read the terms carefully, because the fee structure changes between products.
Interest rates and fees you will encounter
Interest rates on cards for low credit typically range from 18% to 36% APR. That means if you carry a $1,000 balance for a year without paying it down, you will owe $180 to $360 in interest alone. This is why carrying a balance on these cards is expensive — far more expensive than on a standard card, which might be 15% to 21% APR.
Annual fees range from $0 to $95. Some cards charge both an annual fee and a high interest rate. Others charge one or the other. A few charge neither, but they are rare and usually have lower credit limits or longer upgrade timelines.
Beyond the annual fee and interest rate, watch for other charges: foreign transaction fees (usually 2% to 3%), late payment fees ($25 to $40), and over-limit fees if you exceed your credit limit. Some cards charge all three; others charge none. The card's disclosure document will list every fee.
The math is straightforward: if you use the card responsibly — charge small amounts, pay the full balance each month — fees and interest barely matter. If you carry a balance, they matter a lot. Plan to pay in full each month.
How to choose between secured and credit-builder cards
Choose a secured card if you have cash available and want the simplest path. You deposit money, use the card, and after 12 to 24 months of on-time payments, you get your money back and move to a standard card. The approval process is straightforward, and the card behaves like a normal credit card.
Choose a credit-builder card if you do not have a lump sum to deposit, or if you want to avoid the temptation to overspend. You pay monthly into a locked account, the issuer reports your payments, and after 12 months you get the money back. This works well if you want to build credit while also building savings.
If you are torn, compare the total cost. A secured card with a $500 deposit and no annual fee costs you $500 upfront (which you get back). A credit-builder card with a $25 annual fee and a $300 limit costs you $25 per year (which you do not get back). Over two years, the secured card costs nothing; the credit-builder card costs $50. But if the secured card charges a $95 annual fee, the math shifts.
Also consider the upgrade timeline. Some issuers upgrade after 12 months; others require 24. If you want to move to a standard card quickly, choose an issuer with a 12-month timeline.
What happens after you build credit with these cards
After 12 to 24 months of on-time payments, your credit score should rise noticeably — often by 50 to 100 points, depending on where you started and what else is on your credit report. At that point, you become may be able to access for standard credit cards with better terms: lower interest rates, no annual fee, and possibly rewards.
Many issuers will upgrade your secured or credit-builder card automatically. You will receive a letter saying your account has been converted to an unsecured card, your deposit or prepaid balance has been released, and your new interest rate is X%. If your issuer does not upgrade automatically, call and request it after 12 months of perfect payments.
Once you have a standard card, you can close the original card or keep it open. Keeping it open helps your credit score because it lowers your overall credit utilization (the percentage of your total credit limit that you are using). Closing it can hurt your score slightly, because it reduces your available credit. If you keep it, use it occasionally — a small charge every few months — to keep the account active.
The real goal is to build a mix of credit types. A credit card alone is useful, but a credit card plus an installment loan (like a car loan or personal loan) plus on-time bill payments (rent, utilities) creates a stronger credit profile. After you move to a standard card, consider whether other types of credit make sense for your situation.
Common mistakes to avoid
The biggest mistake is carrying a balance. People often think that carrying a small balance helps their credit score — that paying interest proves you are using credit. That is false. Your score improves from on-time payments, not from interest paid. Carrying a balance only costs you money. Charge small amounts and pay the full balance each month.
The second mistake is 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. explore for one card, wait three months, then explore for another if you need it.
The third mistake is ignoring your credit report. Errors on your report — a missed payment that was not yours, a debt listed twice, an account you closed that still shows as open — can keep your score low even if you use your new card perfectly. Request your free credit report from annualcreditreport.com (the only official source) and dispute any errors you find.
The fourth mistake is closing the card too soon. If you upgrade to a standard card after 12 months, keep the original card open for at least a few more years. Closing it removes available credit from your profile and can lower your score. Let it sit with occasional small charges.
Frequently Asked Questions
Will a credit card for low credit hurt my score when I explore?
Yes, but only slightly and temporarily. The process triggers a hard inquiry, which lowers your score by a few points for about three months. After that, the inquiry disappears from your report. The benefit of on-time payments over the next 12 months will far outweigh that initial dip.
What credit score do I need to be approved for these cards?
Secured cards typically have no minimum score requirement — approval depends on your deposit, not your credit history. Credit-builder cards vary; some have no minimum, others require a score of 550 or higher. Check the issuer's requirements before you explore. If you are rejected, try a different issuer or a secured card instead.
Can I use a secured card to pay bills or just for purchases?
You can use it for any purchase or bill payment that accepts credit cards — groceries, gas, utilities, subscriptions. The issuer reports all of it to the credit bureaus. Use it for everyday expenses you would pay anyway, so you can pay the balance in full each month without stretching your budget.
How long does it take to see my score improve?
Most people see a 20 to 50 point increase within three months of on-time payments, and another 30 to 50 points by month six. After 12 months of perfect payments, increases typically slow down unless other factors on your report improve. The exact timeline depends on what else is on your credit report — late payments, collections, or high balances on other cards will slow your progress.
What if I cannot afford the deposit for a secured card?
A credit-builder card is your better option. You pay monthly into a locked account instead of depositing a lump sum upfront. Alternatively, some credit unions offer credit-builder loans, which work similarly but are structured as loans rather than credit cards. Ask your bank or credit union what they offer.