What credit cards are available with a low score
If your credit score is below 620, most standard credit cards will reject your process. But cards designed for people rebuilding credit do exist, and they work differently from the ones you may have used before. These cards come in two main types: secured cards, which require a cash deposit, and unsecured cards for poor credit, which do not but charge higher fees and interest rates.
The purpose of these cards is not to give you spending power — the limits are usually low, between $300 and $2,500. The purpose is to report your payment history to the three credit bureaus (Equifax, Experian, and TransUnion) so that on-time payments gradually raise your score. After 6 to 12 months of consistent use, you may be able to move to a standard card with better terms.
The trade-off is real: you will pay more in fees and interest than someone with good credit. Understanding what you are paying for, and why, helps you decide whether a card makes sense for your situation right now.
Key Takeaways
- Secured cards require a cash deposit equal to your credit limit, but unsecured cards for poor credit do not — each has different costs and risks.
- Annual fees on these cards range from $0 to $100, and interest rates often exceed 25%, so carrying a balance is expensive.
- The main benefit is that on-time payments are reported to all three credit bureaus, which can raise your score by 50 to 100 points over 6 to 12 months.
- Your credit limit is usually low ($300–$2,500), so these cards work best for small, regular purchases you can pay off each month.
- After 6 to 12 months of on-time payments, you can often move to a standard card or request your secured deposit be returned and the card converted.
How secured cards work and what they cost
A secured card requires you to deposit cash 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 card, and the deposit stays in the account untouched — it is collateral, not payment.
The deposit earns little to no interest (usually 0.01% or less), so you are essentially paying the bank to hold your money while you rebuild. After 6 to 18 months of on-time payments, many issuers will convert the card to unsecured, return your deposit, and raise your limit based on your payment history. Some cards charge an annual fee ($0 to $50) on top of the deposit requirement.
Interest rates on secured cards typically range from 18% to 24%. If you carry a balance, you pay that rate on the amount owed. For example, a $300 balance at 20% costs about $5 per month in interest alone. The advantage is that secured cards are easier to get approved for than unsecured cards for poor credit, because the bank's risk is lower — they hold your deposit.
Unsecured cards for poor credit: higher rates, no deposit
An unsecured card for poor credit does not require a deposit. Instead, the issuer takes on the risk that you will not pay. To offset that risk, they charge higher fees and interest rates. Annual fees often range from $35 to $100, and interest rates frequently exceed 25% — sometimes reaching 29.99%.
Because there is no deposit to return, you do not get a tangible benefit beyond the card itself. Your only gain is the credit history reporting. If you carry a balance, the interest cost is steep. A $500 balance at 28% costs roughly $11.67 per month in interest. Over a year, that is $140 in interest alone on a $500 purchase.
Unsecured cards for poor credit make sense only if you plan to pay the full balance each month. If you cannot do that, a secured card with a lower interest rate is usually the better choice, even though it requires a deposit you will not see returned for months.
Comparing secured and unsecured cards side by side
| Feature | Secured Card | Unsecured Card for Poor Credit |
|---|---|---|
| Deposit required | Yes, equal to credit limit | No |
| Typical annual fee | $0–$50 | $35–$100 |
| Typical interest rate | 18%–24% | 24%–29.99% |
| Approval odds with low score | High | Moderate |
| Time to conversion or upgrade | 6–18 months | Not applicable |
| Best for | Building history with cash on hand | Building history with no cash available |
How using these cards actually raises your score
Credit bureaus calculate your score based on five factors: payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new inquiries (10%). A card for poor credit helps with the first three.
Payment history is the largest factor. Every on-time payment is reported to all three bureaus and adds to your history. One missed payment can drop your score 50 to 100 points, so the discipline required is real. Amounts owed (also called utilization) improves when you keep your balance low relative to your limit. If your limit is $500 and you carry a $100 balance, your utilization is 20%, which is good. Carrying $450 on a $500 limit is 90% utilization and hurts your score.
The third benefit is length of credit history. The longer an account stays open and active, the more it helps. This is why keeping the card open after your score improves is often worth doing, even if you stop using it regularly.
Realistic improvement: with on-time payments and low utilization, you might see a 50 to 100 point increase over 6 to 12 months. A score of 580 might become 630 to 680. That is enough to move from poor credit to fair credit, which opens access to better cards and lower rates on loans.
What to watch out for when choosing a card
Not all cards marketed to people with poor credit are worth the cost. Some charge processing fees, setup fees, or monthly maintenance fees on top of the annual fee. Read the terms carefully and add up the total cost before you explore.
Watch for cards that do not report to all three bureaus. If a card only reports to one bureau, your score improvement will be slower. The card issuer should state clearly in the terms that they report to Equifax, Experian, and TransUnion.
Avoid cards with extremely high annual fees ($75 to $100) unless you have no other option. A secured card with a $25 annual fee and 20% interest is usually better than an unsecured card with a $100 annual fee and 29% interest. The math matters more than the label.
Also check whether the card offers a path to conversion. Some secured cards will convert to unsecured after a set period; others require you to request it. Knowing the process in advance helps you plan when to ask for your deposit back.
Steps to use a card responsibly and improve your score
Once you have the card, the goal is straightforward: use it for small purchases you can pay off in full each month, and make every payment on time. Here is the sequence that works:
- Make one small purchase per month (a tank of gas, a grocery item, a utility bill if the company accepts cards).
- Wait for the statement to arrive and review it for accuracy.
- Pay the full balance before the due date — not on the due date, but a few days before.
- Repeat for 6 to 12 months without missing a payment.
- After 6 months, check your credit report at annualcreditreport.com (the free, official source) to see if your score has moved.
- After 12 months, contact the issuer and ask about converting the card to unsecured (if secured) or moving to a standard card.
Do not use the card for large purchases or carry a balance. The interest cost will outweigh the benefit of the credit history. Do not explore for multiple cards at once — each process triggers a hard inquiry, which temporarily lowers your score by a few points. Space applications at least 6 months apart.
Frequently Asked Questions
Will a card for poor credit hurt my score when I first open it?
Yes, slightly. The hard inquiry (when the issuer checks your credit) typically lowers your score by 5 to 10 points. A new account also lowers your average account age. But these effects fade within a few months, and on-time payments begin raising your score after 30 to 60 days. The net effect over 6 to 12 months is positive if you pay on time.
Can I use a secured card if I do not have $500 to deposit?
Yes. Most issuers let you start with a smaller deposit — often as low as $200 or $300. Your credit limit will match that deposit. Starting small is fine; you can always add to the deposit later to increase your limit.
What happens if I miss a payment?
A missed payment is reported to all three bureaus and can drop your score 50 to 100 points. It also stays on your report for seven years. If you miss a payment, contact the issuer when ready and pay as soon as possible. Some issuers will waive a single late fee if you have been on time before, but do not count on it.
How long before I can move to a regular credit card?
Most issuers will consider converting a secured card or moving you to an unsecured card after 6 to 12 months of on-time payments. Some require 18 months. Your credit score also matters — if it reaches 650 or higher, you may be able to move to a standard card from a different issuer even if your current issuer has not offered a conversion yet.
Should I close the card once my score improves?
No. Closing an old account shortens your average account age and can lower your score. Keep the card open and use it occasionally (one small purchase every few months) to maintain the account. The longer it stays open and active, the more it helps your score.