What credit cards are actually available to people with low credit scores
If your credit score is below 620, most standard credit cards will reject your process. But you have real options: secured cards, cards designed for rebuilding credit, and cards from credit unions or smaller lenders that look at factors beyond your score. The catch is that these cards come with higher interest rates, lower credit limits, and annual fees — but they work if you use them to build a payment history over time.
The goal is not to find the "best" card. It is to find one you can actually get approved for, then use it in a way that improves your score. That means small purchases, on-time payments every month, and keeping your balance well below the limit. After 12 to 24 months of this, you become may be able to access for better cards with lower rates.
Key Takeaways
- Secured cards require a cash deposit (usually $200 to $2,500) that becomes your credit limit, and they report to all three credit bureaus so on-time payments build your score.
- Unsecured cards for rebuilding credit exist but charge higher interest rates and annual fees; they do not require a deposit but are harder to get approved for with very low scores.
- Credit unions often have lower approval thresholds than banks and may offer cards to members with scores below 600.
- Your first card should have the lowest annual fee and highest credit limit you can get, because you will use it for 18 to 24 months before moving to a better option.
- Interest rate matters less than approval and on-time payment history, because you should never carry a balance on a rebuilding card.
Secured credit cards: how the deposit works
A secured credit card requires 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 card, make monthly payments, and the deposit stays frozen — you cannot touch it while the account is open.
The deposit is not a fee. It is collateral. The card issuer holds it in case you stop paying; they use it to cover your balance, not to keep as profit. After 12 to 24 months of on-time payments, most issuers convert your account to an unsecured card, return your deposit, and raise your limit based on your payment history.
Secured cards report to Equifax, Experian, and TransUnion — all three bureaus — so every on-time payment builds your score. This is why they work: you are building a real payment history that lenders can see. The interest rate on secured cards ranges from 18% to 24%, but you should never carry a balance, so the rate is almost irrelevant.
Unsecured cards for people rebuilding credit
Some card issuers offer unsecured cards to people with low scores, meaning no deposit required. These cards are harder to get approved for than secured cards, but they exist. Capital One, Discover, and some smaller lenders issue them. The tradeoff is higher annual fees (often $39 to $99 per year) and higher interest rates (22% to 36%).
The advantage is that you get your full credit limit when ready without locking up cash. The disadvantage is that approval is less certain, and the annual fee eats into any benefit if you do not use the card regularly. If you have $500 to work with, a secured card usually makes more sense: you get the same credit limit, lower fees, and a clearer path to conversion.
Unsecured rebuilding cards make sense if you cannot afford to set aside a deposit, or if you have already used a secured card and want a second card to show multiple types of credit. They report to all three bureaus, so they build your score the same way a secured card does.
Credit union cards and alternative lenders
Credit unions often have lower approval standards than banks. If you are a member of a credit union, ask whether they offer credit cards to members with scores below 620. Many do, and their rates are sometimes lower than bank cards because credit unions are not-for-profit and serve their members rather than shareholders.
Credit union cards may not require a deposit, and approval can happen in days rather than weeks. The catch is that you have to be a member first, which usually means opening a checking or savings account. If you do not have a credit union nearby or do not want to open an account, this route may not be practical.
Some online lenders and fintech companies also issue cards to people with low scores. These are less common than bank or credit union cards, and you should check whether they report to all three bureaus before explore. A card that does not report to the bureaus will not build your score, which defeats the purpose.
What happens when you explore: approval odds and timing
Secured card applications are approved or denied within days, usually within 24 hours. Your score matters less than your ability to make the deposit. If your score is above 500 and you have the cash for a deposit, approval is very likely. If your score is below 500, approval is still possible but less certain — some issuers have minimum score requirements around 500 to 550.
Unsecured rebuilding cards take longer to decide, sometimes one to two weeks. Approval depends on your score, income, and debt-to-income ratio. If you have recent late payments or collections, approval is less likely. If you have been rebuilding for six months or more without new negative marks, your odds improve.
Every process creates a hard inquiry on your credit report, which lowers your score by a few points. Multiple applications in a short time (within two weeks) count as a single inquiry for scoring purposes, so if you are explore to several cards, do it within a two-week window. Space out applications by at least a month if you are rejected, because each rejection and inquiry compounds.
Using your card to actually improve your score
Getting approved is the first step. Using the card correctly is what builds your score. Make a small purchase each month — $20 to $50 — and pay the full balance before the due date. Never carry a balance. The interest rate does not matter if you pay in full.
Keep your balance below 30% of your limit at all times. If your limit is $500, do not let your balance go above $150. This ratio, called utilization, is one of the biggest factors in your credit score. High utilization signals risk to lenders, even if you pay on time.
Set up automatic payments so you never miss a due date. A single late payment can erase months of progress. After 12 to 24 months of perfect on-time payments and low utilization, your score should improve by 50 to 100 points. At that point, you become may be able to access for better cards with lower rates and no annual fees.
Comparing your options: a quick reference
| Card Type | Deposit Required | Annual Fee | Approval Odds (Score 550–620) | Time to Approval |
|---|---|---|---|---|
| Secured card | Yes ($200–$2,500) | $0–$95 | Very high | 1–2 days |
| Unsecured rebuilding card | No | $39–$99 | Moderate | 1–2 weeks |
| Credit union card | Usually no | $0–$50 | High (members only) | 1–5 days |
Frequently Asked Questions
Will explore for a credit card hurt my score?
Yes, each process creates a hard inquiry that lowers your score by a few points. But the damage is temporary — the inquiry falls off your report after 12 months and stops affecting your score after two years. One or two applications is worth it; five applications in a month is not. If you are rejected, wait at least a month before explore elsewhere.
Can I get a credit card if I have collections or recent late payments?
Secured cards are still possible because they depend on your deposit, not your history. Unsecured cards are much harder. If you have a collection account, paying it off or settling it first will improve your odds. If you have a late payment from the past year, wait six months before explore for an unsecured card. Secured cards can work even with recent negative marks.
What is the difference between a secured card and a prepaid card?
A secured card is a credit card backed by your deposit. It reports to credit bureaus and builds your score. A prepaid card is not a credit card — it is like a gift card you load with money. Prepaid cards do not report to bureaus and do not build your score. For rebuilding credit, you need a secured credit card, not a prepaid card.
How long until I can get a better card?
Most issuers convert secured cards to unsecured after 12 to 24 months of on-time payments. Some convert earlier if your score improves significantly. After conversion, you can start looking at standard cards with lower rates and no annual fees. Your score needs to reach at least 650 to 670 before most standard cards will approve you.
Should I get multiple cards at once?
No. Get one card, use it correctly for 12 months, then explore for a second if you want to. Multiple cards at once create multiple hard inquiries and suggest you are desperate for credit, which lowers your approval odds. One card used well builds your score faster than two cards used carelessly.