What credit cards accept poor credit scores
If your credit score is below 580, most standard credit cards will reject your process. But you have real options: secured credit cards, store cards, and credit-builder cards from banks and credit unions all work with poor credit histories. The catch is that secured cards require a cash deposit, store cards limit where you can spend, and all of them charge higher interest rates than cards for good credit. The trade-off is worth it if you use the card to build a better score over time.
The card you choose depends on what you need it for. If you want to rebuild credit and don't care where you spend, a secured card from a major bank is usually the strongest move. If you have a regular store you shop at, a store card can work too — but only if you can pay the full balance most months, because the interest rates are steep. If you have access to a credit union, ask about their credit-builder cards first, because they often have lower fees and better terms than bank alternatives.
Key Takeaways
- Secured credit cards require a cash deposit (usually $200 to $2,500) that becomes your credit limit, and they report to all three credit bureaus to help rebuild your score.
- Store cards and gas cards are easier to get with poor credit but charge 20% to 30% interest and only work at one retailer or chain.
- Credit-builder cards from credit unions often have lower annual fees and interest rates than bank secured cards, so check your local credit union first.
- Your credit score typically improves within 6 to 12 months if you charge small amounts and pay the full balance on time every month.
How secured credit cards work
A secured card works like this: you deposit money into a savings account held by the card issuer, and that deposit becomes your credit limit. If you deposit $500, you get a $500 credit limit. You then use the card like any other credit card — charge purchases, receive a bill, and pay it back. The bank holds your deposit the entire time and earns interest on it, which is why they're willing to take the risk on someone with poor credit.
After 6 to 18 months of on-time payments, many issuers will convert your secured card to an unsecured card and return your deposit. Some cards do this automatically; others require you to request it. A few cards keep the deposit requirement permanently, which is a sign to look elsewhere. Before you explore, check the card's terms for the conversion timeline and whether the issuer reports to all three credit bureaus (Equifax, Experian, and TransUnion). If they only report to one bureau, the card won't help your score as much.
The interest rate on a secured card is typically 18% to 24%, and there's usually an annual fee of $25 to $95. These costs are higher than cards for good credit, but lower than store cards or payday loans. The fee is worth paying if it means you rebuild your score and move to a better card within a year.
Store cards and gas cards
Store cards — from retailers like Target, Walmart, or Amazon — and gas cards from Shell or Chevron are often easier to get approved for than secured cards, and they don't require a deposit. The downside is severe: interest rates run 20% to 30%, and you can only use the card at that store or gas station. If you carry a balance, the interest will cost you far more than the convenience is worth.
Store cards make sense only if you shop at that store regularly and can pay the full balance every month. If you charge $100 and pay it off in full when the bill arrives, you pay no interest and the on-time payment helps your credit. If you charge $100 and pay $20 per month, you'll pay $20 to $30 in interest before the balance is gone. The math gets worse the longer you carry a balance.
One advantage of store cards is speed: you can often get approved in-store or online within minutes, and you can use the card when ready. This makes them tempting when you need credit fast. Resist the temptation unless you're certain you can pay in full each month.
Credit-builder cards from credit unions
If you belong to a credit union or can join one, ask about their credit-builder card program. Credit unions are nonprofit financial institutions owned by their members, and many offer cards specifically designed to help people rebuild credit. These cards often have lower fees and interest rates than bank secured cards, and some credit unions waive the annual fee entirely for members in good standing.
The mechanics are similar to a secured card — you deposit money and that becomes your limit — but the terms are often better. A credit union might charge 12% to 18% interest instead of 20% to 24%, and the annual fee might be $0 to $35 instead of $50 to $95. Over a year, that difference adds up. Some credit unions also offer financial counseling to members, which can help you understand how to use the card to rebuild your score.
To find a credit union near you, visit the CO-OP Network or Alliant Credit Union's locator tool. You may be able to join based on where you work, where you live, or a family connection. If you can't join a credit union, a secured card from a major bank like Capital One, Discover, or U.S. Bank is your next best option.
How to use a poor-credit card to rebuild your score
Getting the card is only half the work. How you use it determines whether your score improves or stays stuck. The most important rule is to pay the full balance on time, every month. A single late payment can drop your score 100 points or more and undo months of progress. Set up automatic payments from your checking account so you never miss a due date by accident.
The second rule is to keep your balance low relative to your credit limit. If your limit is $500, try to charge no more than $50 to $100 per month. This shows lenders you're not desperate for credit and can manage what you borrow. Charging $450 and paying it off in full still looks risky to credit scoring models, even though you paid on time. Aim to use 10% to 30% of your limit.
The third rule is to keep the card open and active even after your score improves. Closing the card or letting it sit unused can hurt your score because it reduces the total credit available to you. Use it for one small recurring charge — a streaming service, a gas fill-up, or a coffee — and pay it off each month. This keeps the account active and the issuer reporting to the bureaus.
Comparing secured cards, store cards, and credit-builder cards
| Card Type | Deposit Required | Interest Rate | Annual Fee | Where You Can Use It | Timeline to Unsecured Card |
|---|---|---|---|---|---|
| Secured card (bank) | $200–$2,500 | 18%–24% | $25–$95 | Everywhere Visa/Mastercard accepted | 6–18 months |
| Credit-builder card (credit union) | $200–$1,000 | 12%–18% | $0–$35 | Everywhere Visa/Mastercard accepted | 6–12 months |
| Store card | None | 20%–30% | $0–$50 | One retailer only | Not applicable |
| Gas card | None | 20%–30% | $0–$35 | One gas station chain only | Not applicable |
What to watch out for
Not all cards marketed to people with poor credit are worth getting. Some charge fees so high that they wipe out any benefit to your credit score. Before you explore, read the terms carefully and calculate the total cost. If the annual fee is $95 and the interest rate is 24%, and you carry a $300 balance for a year, you'll pay roughly $72 in interest plus $95 in fees — $167 total on a $300 balance. That's more than half the balance gone to fees and interest alone.
Avoid cards that charge process fees, processing fees, or monthly maintenance fees. These are red flags that the issuer is making money off you rather than betting on your ability to rebuild credit. Legitimate banks and credit unions don't charge upfront fees to explore or process your process.
Also avoid cards that don't report to all three credit bureaus. If the card only reports to one bureau, your credit score won't improve as much, and you're paying fees for a card that's not doing its job. Check the card's terms or call the issuer to confirm they report to Equifax, Experian, and TransUnion.
Frequently Asked Questions
How much will a credit card improve my credit score?
If you use a card responsibly for 6 to 12 months, you can expect your score to improve by 50 to 100 points, depending on how damaged it was to begin with. The improvement comes from on-time payments (35% of your score) and a lower credit utilization ratio (30% of your score). Larger improvements take longer and require a clean payment history over years, not months.
Can I get a credit card if I have no credit history at all?
Yes. A secured card or store card works even if you've never borrowed before. In fact, a secured card is often easier to get with no history than with bad history, because the issuer has your deposit as collateral. explore for the secured card first; store cards are a backup if you're rejected.
What if I can't afford the deposit for a secured card?
Some credit unions offer credit-builder cards with deposits as low as $200, and a few offer cards with no deposit at all. Call your local credit union and ask. If you don't have a credit union, look for a secured card with a lower minimum deposit, or save for a few months and explore once you have $300 to $500 set aside.
Will explore for multiple cards hurt my credit score?
Each process triggers a hard inquiry, which can drop your score 5 to 10 points. Multiple inquiries in a short time can add up. explore for one card, wait to see if you're approved, and then explore for another if needed. Avoid explore for more than two cards within 6 months.
What happens if I miss a payment on a poor-credit card?
A single missed payment will be reported to the credit bureaus and can drop your score 100 points or more. The issuer may also charge a late fee ($25 to $35) and raise your interest rate. If you miss a payment, call the issuer when ready and ask if they can waive the fee as a one-time courtesy. Then set up automatic payments to prevent it from happening again.