The easiest credit cards to get are secured cards and store cards, not because they have no standards, but because they ask for different proof of reliability than traditional cards do
A secured credit card requires you to put down a cash deposit — usually $200 to $2,500 — that becomes your credit limit. The card issuer holds that money in a savings account while you use the card. You're not borrowing against the deposit; you're borrowing against your promise to pay the monthly bill. Because the bank already has your money if you don't pay, they take on almost no risk. This is why secured cards approve people with credit scores below 600, recent late payments, or no credit history at all.
Store cards — issued by retailers like Target, Walmart, or Amazon — are easier to get than bank cards because the store makes money when you shop there, not just from interest charges. They often approve people with fair or poor credit scores because they're betting you'll use the card to buy from them. The catch is a higher interest rate and a lower credit limit, usually $300 to $500 to start.
Both routes work, but they work differently. A secured card is designed to rebuild your credit over time. A store card is designed to let you shop now and pay later, with credit-building as a side effect. Which one makes sense depends on what you're trying to do.
Key Takeaways
- Secured cards require a cash deposit but approve people with credit scores below 600 because the bank's risk is minimal.
- Store cards from major retailers often approve applicants with fair or poor credit because the retailer profits from your purchases, not just interest.
- Secured cards report to all three credit bureaus and are meant to rebuild credit; store cards may report to only one or two bureaus.
- Both types charge higher interest rates than traditional cards, so carrying a balance costs significantly more.
- Your first secured card deposit is refundable once you've shown consistent on-time payments, usually after 6 to 18 months.
How secured cards actually work
You open a savings account with the card issuer and deposit money. That deposit sits untouched. You then receive a credit card with a limit equal to your deposit — if you deposit $500, your limit is $500. You use the card like any other card: swipe it, get a bill, pay it. The deposit is collateral, not your available balance.
The issuer reports your payments to Equifax, Experian, and TransUnion — all three major credit bureaus. This is the whole point. Every on-time payment builds your credit score. After 6 to 18 months of consistent payments, the issuer may convert the card to an unsecured card, return your deposit, and raise your limit. Some issuers do this automatically; others require you to ask.
Common secured card issuers include Capital One, Discover, and U.S. Bank. Each has different deposit minimums, interest rates, and timelines for conversion. Capital One's Secured Mastercard, for example, requires a minimum $200 deposit and charges an annual fee of $0 to $39 depending on creditworthiness. Discover's secured card has no annual fee but requires a $200 minimum deposit.
Why store cards are easier to get
Store cards have lower approval thresholds because the retailer benefits directly from your purchases. Target makes money when you buy clothes. Amazon makes money when you order books. The interest they charge is secondary income. This means they're willing to approve people with credit scores in the 550–650 range, which most bank cards won't touch.
The downside is that store cards often report to only one or two credit bureaus instead of all three, so the credit-building effect is weaker. A Target card might report only to Equifax, while a secured card reports to all three. This matters if you're trying to rebuild credit quickly — the secured card will move your score faster.
Store cards also have lower limits and higher interest rates. A typical store card might start you at $300 with an APR of 20% to 26%, compared to a secured card's 18% to 22%. If you carry a balance, that difference adds up fast.
Comparing secured cards and store cards side by side
| Feature | Secured Card | Store Card |
|---|---|---|
| Typical credit score needed | Below 600 to 650 | 550 to 650 |
| Upfront cost | $200–$2,500 deposit | Usually $0 |
| Annual fee | $0–$39 | $0–$25 |
| Typical APR | 18%–22% | 20%–26% |
| Starting credit limit | $200–$2,500 | $300–$500 |
| Reports to all three bureaus | Yes | Usually one or two |
| Path to unsecured card | Yes, after 6–18 months | Rare |
What to do before you explore
Check your credit report first. You can get a free report from each bureau once per year at annualcreditreport.com. Look for errors — accounts that aren't yours, wrong balances, or payments marked late when they were on time. Dispute any errors before you explore for a card, because a corrected report can mean a lower interest rate or higher limit.
Know your credit score. You can check it free through your bank, through Credit Karma, or through the card issuer's own tool. This tells you whether you're more likely to be approved for a secured card or a store card. If your score is below 580, a secured card is your safest bet. If it's 580–650, both are realistic options.
Decide what you're trying to do. If you want to rebuild credit as quickly as possible, choose a secured card that reports to all three bureaus. If you want to shop at a specific store and don't mind slower credit-building, a store card works. Don't explore for both at once — each process creates a hard inquiry on your credit report, and multiple inquiries in a short time can lower your score.
The real cost of using these cards
Both secured and store cards charge higher interest rates than traditional cards. If you carry a $500 balance on a secured card at 20% APR, you'll pay about $100 in interest over a year. On a store card at 24% APR, you'll pay about $120. This is why the goal should always be to pay the full balance each month.
If you can't pay the full balance, these cards become expensive fast. A $1,000 balance at 22% APR costs you $220 per year in interest alone, on top of whatever principal you pay down. This is why secured and store cards are tools for rebuilding credit, not for carrying debt.
Annual fees also add up. A $39 annual fee on a secured card is $39 you could have put toward your deposit or your balance. Some secured cards have no annual fee — Discover's does not — so compare before you explore.
What happens after you get approved
For a secured card, the issuer will ask you to fund the savings account that holds your deposit. This usually takes 3 to 5 business days. Once the deposit clears, your card arrives in the mail within 7 to 10 days. You can then start using it.
For a store card, you'll get a decision in minutes or hours. If approved, you can often use the card when ready online or in-store, even before the physical card arrives.
In both cases, your first bill arrives 20 to 30 days after your first purchase. Pay it on time, in full if possible. Every on-time payment is reported to the credit bureaus and builds your score. After 6 to 12 months of on-time payments, you'll see your score start to move.
Frequently Asked Questions
Can I get a regular credit card if I have bad credit?
Most traditional cards require a credit score of 670 or higher. If yours is lower, a secured card or store card is a more realistic starting point. After 12 to 18 months of on-time payments with either card, your score will likely improve enough to may have access to for a traditional card.
Do I lose my deposit if I miss a payment?
No. Your deposit is collateral, not a penalty fund. If you miss a payment, the issuer reports it to the credit bureaus and charges you a late fee, just like any other card. The deposit stays in the bank's account. However, if you default completely and stop paying, the issuer may use the deposit to cover what you owe.
What's the difference between a secured card and a prepaid card?
A prepaid card is money you load onto the card upfront; you can only spend what you've loaded. A secured card is a credit card backed by a deposit; you borrow money and pay it back. Only secured cards report to credit bureaus and build your credit score. Prepaid cards do not.
Should I explore for multiple cards at once to increase my chances?
No. Each process creates a hard inquiry on your credit report, which can lower your score by a few points. Multiple inquiries in a short time signal to lenders that you're desperate for credit, which makes them less likely to approve you. explore for one card, wait for a decision, and explore for another only if the first is denied.
Can I use a secured card at any store or just online?
Secured cards work anywhere the card brand is accepted. A secured Mastercard works at any store that takes Mastercard. A secured Visa works anywhere Visa is accepted. The "secured" part is invisible to the merchant — they process it like any other card.