What credit cards will accept you with a lower credit score
Banks and card issuers do offer cards to people with credit scores below 670, though the terms are stricter than cards for people with excellent credit. You will pay a higher interest rate, a yearly fee, or both. The card may come with a lower spending limit. What you get in return is a real credit card that reports to the three major credit bureaus — Equifax, Experian, and TransUnion — which means using it responsibly can gradually raise your score over time.
The main types of cards available to you are secured cards, which require a cash deposit, and unsecured cards designed for lower credit scores, which do not. A secured card is often easier to get approved for because the bank holds your deposit as collateral. An unsecured card for lower credit scores is riskier for the bank, so the interest rate is typically higher. Both types report to the credit bureaus, so both can help you rebuild.
The card issuer will look at more than just your credit score when deciding whether to approve you. They also consider your income, employment history, and whether you have any recent late payments or accounts in collections. Even with a lower score, you may be approved if your income is stable and your recent payment history is clean.
Key Takeaways
- Secured cards require a cash deposit (usually $200 to $2,500) that the bank holds as collateral, making them easier to get approved for with a lower credit score.
- Unsecured cards for lower credit scores do not require a deposit but typically charge higher interest rates and yearly fees.
- Both types report to all three credit bureaus, so responsible use — paying on time and keeping your balance low — can raise your score over months.
- You will likely face an interest rate between 18% and 36% and a yearly fee between $0 and $99, depending on the card and issuer.
- The card issuer looks at your income and recent payment history, not just your credit score, when deciding whether to approve you.
How secured cards work and when to choose one
A secured credit card works like this: you deposit money into a savings account that the bank holds. That deposit becomes your credit limit. You then use the card like any other credit card — swipe it, pay the bill each month, and the bank reports your activity to the credit bureaus.
The deposit is not a fee. It sits in an account at the bank. If you stop paying your bill, the bank can take money from the deposit to cover what you owe. If you pay on time every month, the deposit stays untouched. After 12 to 24 months of on-time payments, many issuers will convert your secured card to a regular unsecured card and return your deposit.
Secured cards are the easier path if your credit score is very low (below 580) or if you have recent late payments or collections accounts. The deposit removes the bank's risk, so approval is more likely. The downside is that your money is tied up — you cannot spend the deposit, and it earns little to no interest while the bank holds it.
Popular secured card issuers include Capital One, Discover, and U.S. Bank. Deposit amounts typically range from $200 to $2,500. Interest rates on secured cards usually fall between 18% and 24%, and yearly fees range from $0 to $95.
Unsecured cards for lower credit scores and their trade-offs
An unsecured card for lower credit scores does not require a deposit. You are approved based on your income, employment, and credit history — not collateral. This means your money is not locked up, and you can start using the card right away.
The trade-off is cost. Because the bank has no deposit to fall back on, it charges higher interest rates to offset the risk. Unsecured cards for lower credit scores typically carry rates between 24% and 36%, and yearly fees between $39 and $99. Some cards charge both a high rate and a high fee.
Unsecured cards are worth considering if your credit score is in the 580 to 669 range and your recent payment history is clean. If you have a late payment from the past six months, a secured card is usually the safer bet because approval is more certain.
Issuers of unsecured cards for lower credit scores include Credit One Bank, OpenSky, and Milestone. Read the terms carefully — some cards charge monthly fees on top of the yearly fee, which adds up quickly.
What to look for when comparing cards
When you are comparing cards, focus on the total cost of carrying a balance, not just the interest rate. A card with a 24% interest rate and no yearly fee may cost less than a card with a 20% rate and a $95 yearly fee, depending on how much you spend and how long you carry a balance.
Check whether the card reports to all three credit bureaus. Some cards report to only one or two, which limits how much your responsible use helps your score. The card issuer's website or the terms document will say which bureaus they report to.
Look for a card with no foreign transaction fees if you travel or shop online internationally. Many cards for lower credit scores charge 3% to 4% on foreign purchases, which adds up fast.
Ask whether the card offers a path to conversion. With a secured card, you want to know the timeline and conditions for converting to unsecured and getting your deposit back. With an unsecured card, some issuers offer a lower interest rate or fee waiver after six to twelve months of on-time payments, which is worth tracking.
How to use the card to raise your credit score
Getting approved is the first step. Raising your score is the second, and it requires discipline. The most important factor in your credit score is payment history — paying on time, every time. Set up automatic payments for at least the minimum due, or set a phone reminder a few days before the due date.
The second factor is your credit utilization ratio, which is the amount you owe divided by your credit limit. If your limit is $500 and you carry a $400 balance, your utilization is 80%, which hurts your score. Keep your balance below 30% of your limit — so on a $500 limit, keep your balance under $150. This is easier to do if you use the card for small, regular purchases and pay the balance down quickly.
Do not close the card once your score improves. Closing it reduces your available credit, which raises your utilization ratio and can lower your score. Keep the card open and use it occasionally, even after you have moved to a better card.
Your score will not jump overnight. Most people see a 50 to 100 point improvement within six months of on-time payments, and larger improvements over 12 to 24 months. The longer your track record of on-time payments, the more your score will rise.
Avoiding fees and interest traps
Cards for lower credit scores often come with hidden or stacked fees. Read the terms document before you explore. Look for monthly maintenance fees, inactivity fees (charged if you do not use the card for a certain period), and fees for going over your limit.
Some cards charge a fee just to set up automatic payments or to check your balance online. These are red flags. Reputable issuers do not charge for basic account management.
If you carry a balance, the interest rate matters far more than the yearly fee. A $50 yearly fee on a card with a 20% interest rate is cheaper than a $0 yearly fee on a card with a 35% interest rate, because the interest will cost you hundreds of dollars per year. Use an online calculator to estimate the total cost before you explore.
Avoid cards that offer a low introductory rate that jumps after a few months. The jump is usually steep, and you may not realize it happened until your next bill arrives. Stick with cards that offer a single, fixed rate.
Alternatives if you cannot get approved for a card
If your credit score is extremely low or you have recent collections or charge-offs, even secured cards may be hard to get. In that case, consider a prepaid card, which works like a debit card but may help you build credit if the issuer reports to the bureaus. Not all prepaid cards report, so ask before you sign up.
Another option is to become an authorized user on someone else's credit card — usually a family member with good credit. Their payment history and low balance will show up on your credit report, which can raise your score. This works only if the primary cardholder has a strong history and keeps the balance low.
You can also ask a bank where you have a checking or savings account about a card designed for their customers. Banks sometimes offer cards to people with lower credit scores if they have an existing relationship and a clean account history.
Frequently Asked Questions
How long does it take to rebuild my credit with a secured card?
Most people see a measurable improvement within three to six months of on-time payments. Larger improvements — 50 to 100 points or more — typically take 12 to 24 months. The timeline depends on how low your score is to start and whether you have other negative items on your report, like recent late payments or collections accounts.
Can I get a credit card if I have an account in collections?
Yes, but approval is less certain. A secured card is your best option because the deposit reduces the bank's risk. Some unsecured card issuers will approve you if the collection is old (more than a year) and you have clean payment history since then. Be honest about the collection on your process — lying will disqualify you.
What is the difference between a secured card and a prepaid card?
A secured card is a real credit card that reports to the credit bureaus and helps you build credit. A prepaid card is more like a debit card — you load money onto it and spend what you have loaded. Most prepaid cards do not report to the credit bureaus, so they do not help your credit score. Check with the issuer before you sign up.
Will explore for a card hurt my credit score?
Yes, but only slightly and temporarily. Each process triggers a hard inquiry, which can lower your score by a few points. Multiple applications in a short time can have a bigger impact. Space out your applications by at least a few weeks, and explore only to cards you are genuinely interested in.
Can I use a secured card to pay bills and build credit faster?
Only if the company reports the payment to the credit bureaus. Most utilities, phone companies, and landlords do not report to the bureaus unless you are late. A credit card is the most reliable way to build credit because the issuer always reports, whether you pay on time or late. Use the card for regular purchases and pay the bill in full each month.