What credit cards will accept a low credit score
Banks and card issuers do offer cards to people with credit scores below 620, but the terms are different from cards marketed to people with good credit. The cards that will consider you fall into two categories: secured cards, which require a cash deposit, and unsecured cards designed for rebuilding credit, which do not. Both charge higher interest rates and lower credit limits than standard cards, and both report to the three major credit bureaus — Equifax, Experian, and TransUnion — so using them correctly can raise your score over time.
The catch is that these cards are also targets for predatory fees. Some charge annual fees of $50 to $150, processing fees just to open the account, or monthly maintenance fees that eat into any credit-building benefit. Reading the full terms before you explore matters more with these cards than with any other financial product.
Key Takeaways
- Secured cards require you to deposit cash as collateral, and your credit limit is usually equal to that deposit, but they report to credit bureaus and can raise your score if you pay on time.
- Unsecured cards for low credit scores exist but charge higher interest rates and annual fees; they do not require a deposit but are riskier if you carry a balance.
- Interest rates on these cards typically range from 18% to 36% APR depending on the issuer and your specific score, so carrying a balance is expensive.
- The real value is in the credit reporting: if you use the card for small purchases and pay the full balance monthly, you build payment history without paying interest.
- Avoid cards with annual fees above $50 or with processing and monthly maintenance fees, as these reduce the benefit of rebuilding credit.
How secured cards work and when they make sense
A secured card works like this: you open a savings account with the card issuer and deposit money — usually $200 to $2,500. That deposit becomes your credit limit. You then use the card like any other card, and the issuer reports your payments to the credit bureaus. The deposit stays in the account untouched; the card issuer holds it as insurance against you not paying your bill.
After 6 to 18 months of on-time payments, many issuers will convert your secured card to a standard unsecured card and return your deposit. Some will not convert automatically, so you may need to call and ask. A few issuers offer no conversion path at all, which means your money stays locked up as long as you hold the card.
Secured cards make sense if you have almost no credit history, a recent bankruptcy, or a score below 550. They are also useful if you were denied for unsecured cards. The downside is that your money is tied up, and you pay interest if you carry a balance — so the card only helps your credit if you use it for small purchases and pay the full amount each month.
Unsecured cards for rebuilding credit: higher risk, no deposit
Unsecured cards designed for low credit scores do not require a deposit, but they come with trade-offs. Interest rates are typically 24% to 36% APR, and many charge annual fees of $35 to $99. Some also charge a one-time processing fee of $25 to $75 just to open the account. These fees are deducted from your credit limit, so a $300 limit card with a $75 processing fee gives you only $225 to spend.
The reason to choose an unsecured card over a secured one is convenience — you do not have to lock up cash. But that convenience comes with real risk: if you carry a balance, the interest charges add up fast. A $500 balance on a 30% APR card costs you $12.50 per month in interest alone. Over a year, that is $150 in interest on a $500 purchase.
These cards only help your credit if you treat them as a tool, not a source of money. Use one for a single small recurring bill — a streaming service, a gas station, or groceries — and set up automatic payment of the full balance each month. That way you build payment history without paying interest.
Interest rates and fees: what to expect and what to avoid
Interest rates on low-credit cards vary by issuer and by your exact score. A score of 580 might get you 32% APR, while a score of 620 might get you 24% APR on the same card. You will not know your exact rate until after you explore, though many issuers publish a range on their website.
Fees are where predatory pricing hides. A card with a $50 annual fee, a $25 processing fee, and a $10 monthly maintenance fee costs you $185 in the first year before you even use it. Compare that to a card with a $50 annual fee and nothing else. Both are expensive, but one is far worse. Read the full terms document — not the marketing page — before you explore. The terms will list every fee, when it is charged, and whether it is deducted from your credit limit.
Red flags: any card charging more than $50 in annual fees, any card with a monthly maintenance fee, and any card that charges a fee just to check your balance or make a payment. These are signs the issuer is making money from fees rather than from interest, which means the card is designed to be expensive for you.
Building credit with a low-score card: the right way to use it
The only reason to get one of these cards is to raise your credit score. That happens through two mechanisms: payment history (35% of your score) and credit utilization (30% of your score). Payment history means paying on time, every time. Credit utilization means using only a small portion of your available credit.
The right strategy is this: put one small recurring charge on the card each month — $10 to $30 — and set up automatic payment of the full balance from your checking account. This way, the card reports a payment every month, your utilization stays below 10%, and you never pay interest. After 6 to 12 months of this, your score will rise, often by 50 to 100 points depending on your starting score and what else is on your credit report.
What not to do: do not max out the card, do not miss a payment, and do not close the card once your score improves. Closing it lowers your available credit and can actually hurt your score. Keep it open and keep using it for that one small charge, even after you move to better cards.
Secured vs. unsecured: which type is right for you
| Feature | Secured Card | Unsecured Card |
|---|---|---|
| Deposit required | Yes, $200–$2,500 | No |
| Credit limit | Equal to deposit | $300–$1,000 typically |
| Interest rate (APR) | 18%–28% typically | 24%–36% typically |
| Annual fee | $0–$50 | $35–$99 |
| Conversion to unsecured | Often, after 6–18 months | Not applicable |
| Best for | Score below 550, no credit history, recent bankruptcy | Score 550–620, some credit history |
Choose a secured card if your score is very low (below 550), if you have almost no credit history, or if you were denied for unsecured cards. The deposit is a hassle, but the interest rate is usually lower and the path to conversion is clearer.
Choose an unsecured card if your score is between 550 and 620 and you want to avoid locking up cash. Be prepared for higher interest rates and annual fees, and be disciplined about paying the full balance each month.
Where to find these cards and what to watch for
Secured cards are offered by most major banks — Capital One, Discover, and U.S. Bank all have versions — as well as by credit unions. Unsecured cards for low credit are offered by issuers like Capital One, Milestone, and others. You can search for current offers on the websites of individual banks or on comparison sites, but always go to the bank's own website to read the full terms before explore.
When you search, you will see marketing language like "build credit" and "second chance." That is fine. What matters is the actual terms: the APR, the annual fee, the processing fee, and the conversion policy for secured cards. Do not explore to multiple cards at once; each process creates a hard inquiry on your credit report, and multiple inquiries in a short time can lower your score slightly.
One more thing: these cards are not a substitute for fixing other credit problems. If you have unpaid collections, a recent bankruptcy, or late payments still appearing on your report, a new card will help but will not solve the problem on its own. A credit counselor at a nonprofit agency like the National Foundation for Credit Counseling can help you understand your full situation and create a plan.
Frequently Asked Questions
Will getting one of these cards hurt my credit score?
The process itself will create a small, temporary dip — usually 5 to 10 points — because the issuer runs a hard inquiry. But if you use the card responsibly, your score will recover and then rise within 2 to 3 months. The long-term benefit far outweighs the short-term dip.
Can I get my deposit back from a secured card before my score improves?
Yes, but it means closing the card, which can hurt your score. Some issuers will convert your card to unsecured and return your deposit without you closing anything. Call your issuer and ask about their conversion process before you explore.
What if I miss a payment on one of these cards?
A missed payment will be reported to the credit bureaus and will damage your score significantly — often 50 to 100 points or more. If you miss a payment, contact the issuer when ready and pay as soon as you can. The longer you wait, the worse the damage.
Can I use these cards to pay off other debts?
You can, but it is usually not a good idea. These cards charge high interest rates, so transferring a balance from another card just moves the debt to a more expensive place. Use the card only for small new purchases that you can pay off in full each month.
How long does it take to rebuild credit with one of these cards?
Most people see a 50 to 100 point increase within 6 to 12 months of on-time payments and low utilization. The exact timeline depends on what else is on your credit report — older negative items hurt less than recent ones — but consistent on-time payment is the fastest path to improvement.