What credit cards are actually available to you with a low score
If your credit score is below 620, most standard credit cards will reject you. But you have real options: secured cards, store cards, and cards designed for rebuilding credit. These cards exist because lenders know people rebuild credit by using credit responsibly, not by avoiding it entirely.
The trade-off is real. Cards for low scores charge higher interest rates (often 20% to 30% APR), annual fees ($25 to $99), and lower credit limits ($300 to $2,500). But they report to all three credit bureaus, which means on-time payments actually move your score up. That's the mechanism: you use the card, pay it on time, and six to twelve months later your score rises enough to move to a better card.
The key is not to treat these cards as normal credit. They are a tool for one specific job: proving you can borrow and repay. Once your score reaches 650 to 680, you can move to a card with lower fees and rates.
Key Takeaways
- Secured cards require a cash deposit ($200 to $2,500) that becomes your credit limit, and they charge annual fees of $25 to $99 plus interest rates of 18% to 30% APR.
- Store cards and cards marketed for credit rebuilding have no deposit requirement but charge higher fees and rates, and some have spending caps that limit how much you can charge per month.
- All three types report to the major credit bureaus, so consistent on-time payments will raise your score within six to twelve months.
- The goal is to use the card for small, regular purchases you can pay off in full each month, not to carry a balance and pay interest.
- Once your score reaches 650 to 680, you can move to a standard card with lower rates and no annual fee.
How secured cards work and when they make sense
A secured card requires you to deposit cash with 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, and the deposit sits in a separate account earning minimal interest (usually 0.01% to 0.5% APY).
The deposit is not a fee — you get it back. But you do pay an annual fee ($25 to $99), and you pay interest on any balance you don't pay off in full. The interest rate is typically 18% to 30% APR, which is why carrying a balance costs real money.
Secured cards make sense if your score is below 580 or if you have no credit history at all. They are also the fastest way to rebuild because the deposit proves to the lender that you are serious. Issuers know they can recover their money from your deposit if you default, so they approve people with very low scores.
After twelve to eighteen months of on-time payments, most secured card issuers will convert your account to an unsecured card and return your deposit. Some will do this automatically; others require you to request it. Check the card's terms before you open it.
Store cards and credit-builder cards without a deposit
If you do not want to tie up cash in a deposit, store cards and cards marketed as "credit builder" cards offer an alternative. These have no deposit requirement, but they come with higher fees and often lower limits.
Store cards (like those from Target, Amazon, or Walmart) typically have annual fees of $0 to $99 and APR of 18% to 29%. Some have spending caps — you might be limited to $300 per month even though your credit limit is $1,000. These caps exist because the issuer is managing risk; they want to see you use the card responsibly before they raise the limit.
Credit-builder cards from companies like Self, Chime, or Deserve work differently. Some require you to make a monthly payment to a savings account, and that payment becomes your credit limit. Others charge a monthly fee ($5 to $15) and give you a credit limit based on your payment history. These cards report to the bureaus just like any other card, so they build credit the same way.
The advantage of store and credit-builder cards is that you keep your cash. The disadvantage is that the fees and rates are often higher than secured cards, and the limits are lower. Choose a secured card if you have $200 to $500 to deposit; choose a store or credit-builder card if you do not.
How to use a low-score card without making your situation worse
The single most important rule: pay the full balance every month. If you carry a balance, you pay interest at 20% to 30% APR. On a $500 balance, that is $100 to $150 per year in interest alone. You are rebuilding credit, not paying to borrow money.
Use the card for small, regular purchases you were already planning to make. Buy groceries, gas, or a monthly subscription. Pay the bill in full when it arrives. This shows the credit bureaus that you can borrow and repay consistently, which is what raises your score.
Do not max out the card. Even if your limit is $1,000, try to keep your balance below 30% of the limit ($300). Credit bureaus track your utilization ratio — the percentage of your limit you are using at any given time. High utilization (above 50%) signals risk, even if you pay on time. Low utilization (below 10%) signals control.
Set up automatic payments if the card issuer offers them. Missing a payment by even one day can trigger a late fee ($25 to $35) and damage your score. Automatic payments eliminate that risk. If you cannot afford to pay the full balance, pay as much as you can, but understand that you are paying interest on the rest.
When to move to a better card
After six to twelve months of on-time payments, check your credit score. If it has risen to 650 or above, you are ready to move. At that point, you can explore for a standard card with lower rates and no annual fee.
Do not close the low-score card when ready after you get approved for a better one. Closing the account can actually hurt your score because it reduces your total available credit and shortens your average account age. Instead, keep the card open, use it occasionally (one small purchase every few months), and pay it off in full. This keeps the account active and reporting positive history.
If the low-score card has an annual fee and you have moved to a better card, you can call the issuer and ask them to waive the fee or close the account. Some will waive it if you have been a good customer; others will close it without penalty. Either way, your credit history stays on your report for seven years, so the positive payment history remains.
Comparing secured cards, store cards, and credit-builder cards
| Card Type | Deposit Required | Annual Fee | APR Range | Credit Limit | Best For |
|---|---|---|---|---|---|
| Secured Card | $200–$2,500 | $25–$99 | 18%–30% | Equals deposit | Score below 580; fastest rebuilding |
| Store Card | None | $0–$99 | 18%–29% | $300–$1,500 | No cash to deposit; regular retail purchases |
| Credit-Builder Card | None (or monthly payment) | $5–$15/month | 0%–25% | $300–$1,000 | Building credit from scratch; no retail preference |
What happens to your score as you use these cards
Your credit score is built from five factors: payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%). A low-score card affects all of them.
Payment history is the biggest factor. One on-time payment does not move your score much, but six months of on-time payments will. You should see a 20- to 50-point increase within six months if you pay on time and keep your balance low. After twelve months, the increase is often 50 to 100 points.
Amounts owed matters when ready. If you open a card with a $500 limit and charge $450, your utilization is 90%, which hurts your score. If you charge $150, your utilization is 30%, which helps it. This is why keeping your balance low matters even in the first month.
Length of credit history and credit mix take longer to help you. The card itself adds to your credit mix (showing you can handle revolving credit), but that benefit is small. The real benefit comes from time: after two years of on-time payments, this card becomes part of your established history, and that helps your score more.
Frequently Asked Questions
Will opening a low-score card hurt my credit score right away?
Yes, but only slightly and temporarily. The card issuer will do a hard inquiry, which typically drops your score by 5 to 10 points. This effect fades within three to six months. The on-time payments that follow will more than make up for it, so the short-term dip is worth it.
Can I use multiple low-score cards at the same time?
You can, but it is usually not necessary. One card is enough to rebuild your score. Multiple cards mean multiple annual fees and multiple hard inquiries, which costs you money and hurts your score more. Open one card, use it responsibly for six to twelve months, then move to a better card.
What if I cannot pay the full balance one month?
Pay as much as you can. A partial payment is better than a missed payment. You will pay interest on the remaining balance (at 20% to 30% APR), but you will not trigger a late fee or damage your payment history. Try to catch up the next month so you do not carry the balance forward.
Do I need to use the card every month to rebuild my credit?
No, but regular use is better. One purchase every three months is enough to keep the account active and reporting to the bureaus. If you do not use the card for six months or more, the issuer might close it for inactivity, which removes it from your credit report.
How do I know when I am ready to move to a standard card?
Most lenders approve standard cards for scores of 650 and above. Check your score after six to twelve months of on-time payments. If it has reached 650 or higher, you can explore for a standard card with no annual fee and a lower APR. You do not have to wait for a perfect score — 650 is the threshold where your options improve significantly.