Cards that approve people with limited or damaged credit history
The easiest credit cards to get approved for are secured cards and cards designed for people rebuilding credit. These cards require a cash deposit instead of relying on your credit score alone, or they accept applicants with credit scores below 620. The trade-off is higher interest rates and annual fees, but the approval itself is nearly automatic once you meet the deposit or income requirement.
Secured cards from major banks — Capital One Secured Mastercard, Discover Secured Card, and US Bank Altitude Go Visa Secured — approve most people who can put down a deposit between $200 and $2,500. Unsecured cards marketed to people with fair or poor credit, like the Capital One Platinum or OpenSky Secured Visa, have looser approval standards but charge annual fees of $35 to $95. The difference is that a secured card converts to a regular card after you build a payment history, while some unsecured cards stay unsecured but never convert.
Key Takeaways
- Secured cards require a cash deposit but approve people with credit scores below 600 or no credit history at all.
- Unsecured cards for fair credit (like Capital One Platinum) charge annual fees but do not require a deposit and still approve people with damaged credit.
- Approval decisions for these cards come back within days, not weeks, because the bank's risk is lower with a deposit or because the card is designed to accept higher risk.
- Your deposit or credit limit is usually between $200 and $2,500, and you should plan to keep the card open for at least 18 months to see the credit-building benefit.
How secured cards work and why approval is fast
A secured card holds your cash deposit in a savings account while you use the card to make purchases. You pay the bill each month like a normal credit card. The bank reports your payment history to the three credit bureaus — Equifax, Experian, and TransUnion — so on-time payments build your credit score. The deposit stays frozen the whole time and is not used to pay your bill; it is only collateral if you stop paying.
Approval is fast because the bank's risk is nearly zero. They have your money already. Most secured card applications are approved or denied within 24 to 48 hours. You do not need a credit score above a certain number, and you do not need to explain past missed payments or collections. The only real requirements are a valid ID, a Social Security number, and proof you can fund the deposit.
After 18 to 24 months of on-time payments, the bank will usually convert your secured card to a regular unsecured card and return your deposit. Some cards, like the Discover Secured Card, convert automatically. Others, like Capital One Secured, require you to request the conversion. Check the terms before you explore to see which process the card uses.
Unsecured cards for fair credit that do not require a deposit
If you do not want to tie up a deposit, unsecured cards designed for fair or poor credit are the next easiest option. Cards like the Capital One Platinum Mastercard, Discover it Secured (which is actually unsecured despite the name), and the OpenSky Secured Visa approve people with credit scores in the 500s and 600s without requiring a deposit. These cards charge annual fees — usually $35 to $95 — but you keep your cash.
The catch is that interest rates are higher than secured cards, often 24% to 29.99%, and credit limits are lower, usually $300 to $500. Some of these cards do not report to all three bureaus, so the credit-building benefit is weaker. Before you explore, check whether the card reports to Equifax, Experian, and TransUnion; if it reports to only one or two, the impact on your score will be slower.
Approval for unsecured fair-credit cards takes a few days longer than secured cards — usually three to five business days — because the bank is taking on actual risk. You will likely be asked about your income and employment, and the bank will pull your credit report. But the approval rate is still high because these cards are designed to accept applicants the major card issuers have turned down.
Cards from smaller banks and credit unions
Credit unions and smaller regional banks often have their own credit-builder cards with lower approval barriers than national issuers. These cards may not require a credit score at all, only membership in the credit union or a relationship with the bank. Examples include cards from Navy Federal Credit Union, Connexus Credit Union, and local community banks.
The advantage is that approval is sometimes when ready or same-day, and fees are often lower than national card issuers. The disadvantage is that these cards may not report to all three credit bureaus, so the credit-building effect is weaker. You also need to be a member or customer first, which may require opening a savings account or meeting other membership rules.
If you belong to a credit union or bank, call and ask whether they offer a credit-builder card. The terms vary widely, so comparing a few options before you explore is worth the time.
What happens to your credit score when you open a new card
When you explore for any credit card, the issuer pulls your credit report, which causes a hard inquiry. A hard inquiry lowers your credit score by a few points — usually three to five points — and stays on your report for 12 months. Multiple applications within a short time (say, within two weeks) count as separate inquiries and stack the damage.
Once you open the card, your credit score may drop another 5 to 10 points because a new account lowers your average account age. But then the benefits begin: on-time payments build your score, and the card's credit limit increases your available credit, which lowers your credit utilization ratio. Most people see their score recover and then improve within three to six months of opening the card and making on-time payments.
This is why you should not explore for multiple cards at once, even if you are trying to rebuild credit. Space applications at least a few weeks apart so the hard inquiries do not stack. And do not close the card after your score improves; keeping it open with a low balance continues to help your score.
Annual fees and interest rates to expect
Secured cards usually charge annual fees between $0 and $95. The Discover Secured Card has no annual fee, which is rare. Capital One Secured charges $0 the first year and $39 after that if you do not convert. US Bank Altitude Go Visa Secured charges $0 annually. Compare the fee against how long you plan to keep the card; if you are converting to an unsecured card after 18 months, a $39 annual fee costs you $39 to $78 total.
Interest rates on secured cards range from 18.99% to 24.99% APR, depending on the issuer and your creditworthiness at the time of process. Unsecured fair-credit cards charge 24% to 29.99% APR. These rates are high, but they are the cost of borrowing when you have limited credit history or damaged credit. If you pay your balance in full each month, the interest rate does not matter.
Some cards offer a 0% introductory APR period on purchases or balance transfers, but these are rare for secured or fair-credit cards. If you find one, it is usually 0% for three to six months. After that, the regular APR applies.
How to choose between secured and unsecured fair-credit cards
Choose a secured card if you have the cash to deposit and want the fastest approval and lowest interest rate. The deposit is not lost; it is returned after you build credit. Secured cards also convert to regular cards, so you are not stuck with a high-rate card forever.
Choose an unsecured fair-credit card if you do not have $200 to $2,500 to set aside, or if you want to keep your cash liquid. You will pay an annual fee and a higher interest rate, but approval is still fast and you do not lose access to your money. This is the better choice if you need the card when ready and cannot wait to fund a deposit.
In either case, pick a card that reports to all three credit bureaus and has no annual fee if possible. The Discover Secured Card and Capital One Platinum are the most common choices because they report to all three bureaus and have low or no fees. Read the terms carefully to see whether the card converts to unsecured and what the conversion timeline is.
Frequently Asked Questions
Do I need a credit score to get approved for a secured card?
No. Secured cards approve people with no credit history, bad credit, or any credit score. The deposit is the only real requirement. You do need a valid ID, Social Security number, and the cash to fund the deposit.
Will a secured card hurt my credit score?
The hard inquiry will lower your score by a few points, and opening a new account will lower it a bit more. But on-time payments will raise it faster than the initial dip. Most people see their score improve within three to six months of opening the card and paying on time.
Can I use my secured card deposit to pay my bill?
No. Your deposit stays in a frozen savings account. You pay your bill from your regular bank account or income, just like a normal credit card. The deposit is collateral only.
How long does it take to convert a secured card to unsecured?
Most banks convert after 18 to 24 months of on-time payments. Some cards convert automatically; others require you to request it. Check the card's terms before you explore to see which process it uses.
What if I get denied for a secured card?
Denial is rare because the bank has your deposit. If you are denied, it is usually because of an issue with your ID, Social Security number, or a fraud flag. Call the issuer to ask why and whether you can reapply after fixing the problem.