The cards most likely to approve you when your credit score is low
The easiest credit cards to get with bad credit are secured cards — cards where you put down a cash deposit that becomes your credit limit. A secured card from a bank or credit union typically approves you within days if you have the deposit money, regardless of your credit score. The deposit sits in a savings account while you use the card normally. After 6 to 18 months of on-time payments, many issuers convert the card to a regular unsecured card and return your deposit.
If you do not have deposit money, store credit cards are the next easiest route. Retailers like Amazon, Target, and Walmart approve applicants with lower credit scores than traditional banks do, though the interest rates are higher and the credit limit is usually small. Some store cards approve you the same day you explore in-store.
A third option is a credit-builder loan from a credit union, which works differently than a card but produces the same result: it reports to the credit bureaus and rebuilds your score. You borrow a small amount (usually $500 to $1,000), make monthly payments, and receive the money after you finish paying. It is not a card, but it is often easier to get than a secured card if you have no savings.
Key Takeaways
- Secured cards require a cash deposit but approve almost anyone with the deposit money, regardless of credit score.
- Store credit cards from retailers approve lower credit scores than banks do and sometimes approve you the same day you explore in-store.
- Credit-builder loans from credit unions let you rebuild credit without a deposit, though you do not receive the money until you finish paying.
- The deposit on a secured card is not a fee — it becomes your credit limit and is returned after you prove you can pay on time.
- All three routes report to the three credit bureaus (Equifax, Experian, TransUnion), so on-time payments raise your score over time.
How secured cards work and why they approve almost everyone
A secured card is the most straightforward path because the bank's risk is zero. You deposit $500 to $2,500 (the amount varies by card and issuer), and that deposit becomes your credit limit. The bank holds the deposit in a separate account while you use the card to make purchases. You receive a bill each month, pay it like any other card, and the deposit stays locked until the issuer converts you to an unsecured card.
Approval happens fast because the bank is not evaluating your creditworthiness — it is evaluating whether you have the deposit money. If you have $500 in savings and no active fraud or identity theft on your credit report, you will likely be approved. Some issuers do a soft credit pull (which does not lower your score) and some do a hard pull (which does lower it by a few points for a few months). Ask the issuer before you explore.
The catch is the interest rate. Secured cards typically charge 18% to 24% APR, which is higher than unsecured cards. If you pay your full balance each month, the interest rate does not matter. If you carry a balance, interest adds up fast. The goal is to use the card for small purchases you can pay off in full each month, so the high rate never costs you money.
Store cards: faster approval, higher rates, smaller limits
Retail credit cards (also called store cards) are issued by the retailer or a bank on the retailer's behalf. Amazon, Target, Walmart, Best Buy, and Kohl's all offer them. These cards approve applicants with credit scores in the 600 range or lower, whereas traditional bank cards usually want 650 or higher. Some store cards approve you when ready at checkout or on the store's website.
The tradeoff is a higher interest rate and a lower credit limit. Store card APRs often run 20% to 30%, and your starting limit might be $300 to $500. The card only works at that retailer (or a small group of affiliated stores), so it is not useful for everyday purchases elsewhere. However, if you shop at that retailer regularly, a store card can be a practical way to rebuild credit while you spend money you were going to spend anyway.
Store cards report to all three credit bureaus, so on-time payments count toward your credit score the same way a bank card does. After 6 to 12 months of perfect payments, you may be able to get a second card from a different retailer or explore for a traditional bank card.
Credit-builder loans: no deposit needed, but you wait for the money
A credit-builder loan is offered by credit unions and some community banks. You borrow a small amount — typically $500 to $1,000 — but you do not receive the money upfront. Instead, the lender deposits it into a savings account in your name and locks it. You make monthly payments (usually $25 to $100) for 12 to 24 months. When you finish paying, you receive the money.
This structure is designed to prove you can make payments on time. The lender has no risk because the money is already set aside. Approval is nearly automatic if you have a bank account and a Social Security number. You do not need a credit score, a deposit, or a job (though some lenders ask for proof of income).
The downside is that you do not have access to the money while you are paying for it. If you borrow $600 and pay $50 per month, you are paying for credit-building, not for something you need now. However, if you have steady income and can afford the monthly payment, a credit-builder loan is often the cheapest way to rebuild credit. Interest rates are low (usually 5% to 10%), and you know exactly what you will pay each month.
Comparing the three routes: deposit, approval speed, and cost
| Card or Loan Type | Deposit Required | Approval Speed | Interest Rate | Credit Limit or Loan Amount |
|---|---|---|---|---|
| Secured card | Yes ($500–$2,500) | 3–7 days | 18%–24% APR | Equals your deposit |
| Store card | No | Same day to 3 days | 20%–30% APR | $300–$500 typical |
| Credit-builder loan | No | 1–3 days | 5%–10% APR | $500–$1,000 typical |
What happens after you prove you can pay on time
The goal of all three routes is the same: build a track record of on-time payments so your credit score rises and you can move to a regular unsecured card with a lower interest rate. This usually takes 6 to 18 months, depending on the issuer and how much your score needs to improve.
With a secured card, after 6 to 18 months of perfect payments, the issuer will review your account and may convert it to an unsecured card. When that happens, your deposit is returned to you. Some issuers do this automatically; others require you to request it. Check your card's terms to see what the issuer's policy is.
With a store card, after 6 to 12 months of on-time payments, your credit score will have risen enough to may have access to for a traditional bank card or a second store card. You can then close the store card (or keep it open to maintain the credit history) and use the new card for everyday purchases.
With a credit-builder loan, once you finish paying, you receive the money and your credit score has improved. You can then explore for a secured card or store card if you want a credit card, or you can explore directly for an unsecured card if your score has risen enough.
How to choose between these three options
Choose a secured card if you have $500 to $2,500 in savings you can lock away for 6 to 18 months. Secured cards are the fastest path to a traditional credit card, and the deposit is returned. The high interest rate only costs you money if you carry a balance, so use the card for small purchases you pay off in full each month.
Choose a store card if you shop at a specific retailer regularly and do not have deposit money. Store cards approve faster than secured cards and you do not need a deposit. The downside is the card only works at one retailer and the interest rate is high. This route works best if you were going to spend money there anyway.
Choose a credit-builder loan if you have steady monthly income but no savings to deposit. Credit-builder loans have the lowest interest rates and approve almost everyone. The tradeoff is you do not have access to the money while you are paying for it. This route works best if you can afford the monthly payment and do not need the money for 12 to 24 months.
Frequently Asked Questions
Does getting a secured card hurt my credit score?
The card issuer will do a hard credit pull, which lowers your score by a few points for a few months. However, the on-time payments you make after that will raise your score much more than the hard pull lowered it. The net effect after 6 months is almost always positive.
What if I cannot pay my secured card bill one month?
A missed payment will be reported to the credit bureaus and will lower your score. It also defeats the purpose of the card, which is to prove you can pay on time. If you are struggling to pay, contact the card issuer and ask about hardship options. Some issuers will work with you rather than report a missed payment.
Can I use a secured card and a store card at the same time?
Yes. Using multiple cards and paying all of them on time actually raises your score faster than using one card. However, only do this if you can afford to pay all the bills each month. Missing a payment on any card will hurt your score.
How long does it take to move from a secured card to a regular card?
Most issuers convert secured cards to unsecured after 6 to 18 months of on-time payments. Some issuers are faster; others take longer. Check your card's terms or call the issuer to ask what their timeline is.
Is a credit-builder loan better than a secured card?
Neither is objectively better — it depends on your situation. A credit-builder loan has a lower interest rate and does not require a deposit, but you do not have access to the money while you are paying. A secured card gives you a usable credit limit when ready. If you have savings, a secured card is usually faster. If you do not have savings but have steady income, a credit-builder loan is usually cheaper.