Credit card issuers that work with lower credit scores
You can get a credit card with bad credit, but not from the same places someone with a 750 credit score applies. Banks that serve people rebuilding credit fall into three categories: secured card issuers, subprime credit card companies, and credit unions. Each has different deposit requirements, fee structures, and paths to a regular card later.
Secured cards require a cash deposit — usually $200 to $2,500 — that becomes your credit limit. You use the card like any other, make monthly payments, and the deposit stays in the bank's account as collateral. After 12 to 24 months of on-time payments, many issuers convert you to an unsecured card and return your deposit. Capital One Secured Mastercard, Discover Secured Card, and U.S. Bank Altitude Go Visa Secured are the most common options.
Subprime issuers approve people with credit scores below 620 without requiring a deposit, but charge higher interest rates and annual fees. Milestone Mastercard, OpenSky Secured Visa, and Credit One Bank are examples. These cards cost more to carry but may be faster to obtain if you cannot save a deposit right now.
Credit unions often have more flexible approval standards than banks. If you are a member or can join one in your area, ask whether they offer cards for members rebuilding credit. Some unions have no annual fee and lower rates than subprime issuers.
Key Takeaways
- Secured cards require a cash deposit but offer the clearest path to rebuilding credit and converting to a regular card within two years.
- Subprime cards approve without a deposit but charge annual fees and higher interest rates, making them more expensive to use.
- Credit unions may offer better terms than banks if you are a member or can join one in your area.
- Every card you open will show up on your credit report, so opening multiple cards in a short time can lower your score further.
- The goal is not to get approved — it is to use the card responsibly for six to twelve months, then look for a better card with lower fees.
What happens when you explore with bad credit
When you submit an process, the issuer will pull a hard inquiry on your credit report. This inquiry stays on your report for two years and lowers your score by a few points. If you are denied, that inquiry still counts, so explore to multiple cards in one week can damage your score more than the bad credit itself.
Issuers that work with lower scores use different approval criteria than mainstream banks. Instead of relying on your credit score alone, they may look at your income, employment history, and whether you have had a bank account for a certain length of time. Some ask whether you have been turned down for credit recently — answering honestly matters, because lying on an process is fraud.
Approval decisions usually come within one to three business days. If you are approved, the card arrives in seven to ten business days. If you are denied, the issuer must send you a written notice explaining why, and you have the right to request a free copy of the credit report they used.
Secured cards versus subprime cards: which costs less
A secured card costs less over time if you can save the deposit. Here is why: a $500 deposit on a secured card from Capital One or Discover typically has no annual fee and a 19–24% interest rate. A subprime card like Credit One Bank charges a $39–99 annual fee plus a 24–29% interest rate, and some charge a processing fee just to open the account.
If you carry a $500 balance for one year on a subprime card at 27% interest with a $75 annual fee, you pay roughly $210 in interest plus the annual fee. On a secured card with no annual fee at 21% interest, you pay roughly $105 in interest. The secured card saves you over $100 in the first year alone.
The trade-off is that you need cash available right now. If you do not have $200–500 saved, a subprime card may be your only option. In that case, use it for small purchases you would make anyway — gas, groceries — and pay the full balance every month to avoid interest charges altogether.
How to choose between issuers
Before you explore, compare three things: annual fee, interest rate, and the path to conversion. Some secured cards promise conversion to unsecured after 12 months; others take 24 months or require a higher credit score at conversion time. Discover Secured Card converts after seven months of on-time payments, which is faster than most competitors.
Check whether the issuer reports to all three credit bureaus — Equifax, Experian, and TransUnion. If they report to only one bureau, your credit-building progress will not show up on your full credit report. Capital One, Discover, and U.S. Bank report to all three; some smaller issuers do not.
Read the fine print for fees beyond the annual fee. Some cards charge a processing fee, a program fee, or a monthly maintenance fee. These hidden costs add up. A card with a $39 annual fee and no other charges is better than a card with no annual fee but a $15 monthly maintenance fee.
What to do after you get approved
Your first month matters more than your credit score. Set up automatic payments for at least the minimum due, so you never miss a payment by accident. Missing even one payment will set back your credit rebuilding by months.
Use the card for small, regular purchases — $50 to $100 per month — and pay the full balance every month if you can. This shows lenders you can manage credit responsibly. Carrying a balance does not help you rebuild faster; it just costs you interest.
After six months of on-time payments, contact the issuer and ask whether they will increase your credit limit without a hard inquiry. Some will. A higher limit lowers your credit utilization ratio — the percentage of available credit you are using — which improves your credit score.
After 12 months, start looking at cards with better terms. You may now may have access to for a mainstream card with a lower interest rate and no annual fee. When you explore for the new card, you can close the secured card or keep it open with a small balance to maintain your credit history length.
Why your credit score matters less than your payment history
Lenders that work with bad credit are not betting on your score — they are betting on your behavior going forward. A score of 580 with two missed payments in the last year is riskier than a score of 600 with no missed payments in three years. Issuers know this, which is why they focus on recent payment history, not the number itself.
This is good news for you. You cannot change your credit score overnight, but you can start making on-time payments today. After three months of on-time payments, you will see your score begin to move. After six months, the improvement becomes noticeable. After 12 months, you will likely may have access to for better cards.
The card you get today is not the card you will have in two years. Think of it as a tool to prove you can handle credit responsibly, not as a permanent solution.
Frequently Asked Questions
Will explore for a credit card hurt my credit score?
Yes, the process triggers a hard inquiry that lowers your score by a few points. But the damage is temporary — the inquiry falls off your report after two years. The bigger risk is explore to multiple cards in a short time, which can lower your score by 10–20 points. explore to one card, wait for a decision, and only explore elsewhere if you are denied.
Can I get a credit card if I have no credit history at all?
Yes. Issuers that work with bad credit also work with people who have no credit history. A secured card is your best option because it does not require a credit score to approve. You will need a bank account, a Social Security number, and proof of income. Some issuers will approve you based on employment alone.
What if I cannot afford a deposit for a secured card?
A subprime card is your option. You will pay higher fees and interest rates, but you can get approved without a deposit. Use it for small purchases and pay the balance in full each month to avoid interest charges. After six months of on-time payments, you may may have access to for a secured card or a mainstream card with better terms.
How long does it take to rebuild my credit with a new card?
You will see movement in three to six months of on-time payments. Significant improvement — enough to may have access to for better cards — usually takes 12 months. The older the negative marks on your report, the longer they take to stop affecting your score. A missed payment from last month hurts more than one from two years ago.
Should I close my old cards after I get a new one?
No. Closing old cards lowers your available credit and can hurt your score. Keep them open with zero balance if possible. The longer your credit history, the better your score. If an old card has an annual fee, you can close it, but keep newer cards open even after you stop using them.