Secured credit cards and cards for people rebuilding credit are your best bet if you have a low credit score or limited credit history
The easiest cards to get are secured credit cards, which require a cash deposit that becomes your credit limit. You put down $500 to $2,500, and that money sits in a bank account while you use the card. Because the bank holds your deposit as collateral, they approve almost anyone with a valid ID and a bank account — even people with no credit history or recent missed payments.
The second-easiest category is cards designed for people rebuilding credit. These typically have higher interest rates and annual fees than standard cards, but approval odds are high if you have a Social Security number and a checking account. They don't require a deposit, but they do require you to prove you can pay the monthly bill.
The hardest cards to get are premium rewards cards and cards for people with excellent credit. Those require a credit score of 750 or higher, significant income, and a clean payment history. If your score is below 650, you will not be approved for those cards.
Key Takeaways
- Secured cards require a cash deposit but have the highest approval odds because the bank's risk is nearly zero.
- Cards marketed for rebuilding credit have no deposit requirement but charge higher fees and interest rates in exchange for easier approval.
- Your credit score, income, and payment history are the three things card issuers check most carefully when deciding whether to approve you.
- Getting approved for an easier card now can help you move to a better card in 6 to 12 months if you pay on time.
How secured cards work and why approval is nearly automatic
A secured card works like this: you deposit money into a savings account held by the card issuer, and that deposit becomes your credit limit. If you deposit $1,000, your credit limit is $1,000. You then use the card like any other card — swipe it, pay the bill each month, and build a payment history.
Banks approve secured cards at high rates because they have almost no risk. If you stop paying, they straightforward take the money from your deposit. This is why secured cards are available to people with credit scores below 600, people with recent bankruptcies, and people with no credit history at all.
The catch is the cost. Most secured cards charge an annual fee of $25 to $95, and interest rates typically run 18% to 24% if you carry a balance. You also earn little to no rewards on purchases. But if your goal is to rebuild credit or get your first card, the cost is worth it because you will move to a better card within a year or two if you pay on time.
After 6 to 18 months of on-time payments, most issuers will convert your secured card to a regular unsecured card and return your deposit. Some will do it automatically; others require you to ask.
Cards for rebuilding credit: higher fees, but no deposit needed
These cards are marketed directly to people with damaged credit or thin credit files. They do not require a deposit, but they do require proof of income and a checking account. Approval odds are high — often 50% to 70% — if you meet those basic requirements.
The trade-off is cost. Annual fees range from $35 to $99, and interest rates are typically 24% to 29% if you carry a balance. Some cards also charge a one-time processing fee of $75 to $150 when you open the account. Rewards are minimal or nonexistent.
These cards make sense if you do not have $500 to $2,500 for a secured card deposit, or if you want to start rebuilding when ready without waiting for a deposit to clear. The higher fees mean you should plan to pay off your balance in full each month to avoid interest charges.
What card issuers look at when they decide to approve you
Card issuers use three main signals to decide whether to approve you: your credit score, your income, and your payment history. If you are explore for a secured card, your credit score matters less because the deposit covers the bank's risk. If you are explore for an unsecured card, all three matter.
Credit score: Most cards for rebuilding credit want to see a score of 550 or higher. Secured cards have no minimum score requirement. Your score is calculated from your payment history (35%), amounts owed (30%), length of credit history (15%), new credit inquiries (10%), and credit mix (10%).
Income: Card issuers want proof that you can pay your monthly bill. You do not need a high income — many cards approve people making $20,000 to $30,000 per year — but you do need to show you have a job or other regular income. Self-employment income counts, but you may need to provide tax returns or bank statements as proof.
Payment history: If you have missed payments in the past 12 months, approval odds drop sharply. If your last missed payment was more than 2 years ago, most issuers will overlook it. Recent bankruptcies (within the last 2 years) make approval harder but not impossible for secured cards.
How to choose between a secured card and a rebuilding card
Choose a secured card if you have $500 or more available to deposit and you want the lowest possible interest rate. Secured cards typically charge 18% to 24%, while rebuilding cards charge 24% to 29%. Over time, that difference adds up if you carry a balance.
Choose a rebuilding card if you do not have money for a deposit, or if you want to avoid locking up cash. You will pay higher fees and interest, but you keep your money in your checking account instead of tying it up in a savings account.
Either way, your goal should be the same: use the card for small purchases you would make anyway, pay the full balance each month, and keep your credit utilization below 30% of your limit. After 6 to 12 months of on-time payments, you will be ready to move to a standard card with better terms.
What happens after you get approved and start using the card
Once you have the card, your payment behavior is what matters. The card issuer reports your activity to the three credit bureaus — Equifax, Experian, and TransUnion — every month. On-time payments build your score; late payments damage it.
A single late payment can drop your score by 100 points or more. A payment that is 30 days late stays on your credit report for 7 years. This is why paying on time is more important than the card's interest rate or annual fee — one missed payment can undo months of progress.
Use the card for small, regular purchases: groceries, gas, a subscription you already pay for. Then pay the bill in full when it arrives. This shows lenders that you can manage credit responsibly. After 6 to 18 months, you will see your score improve, and you will start receiving offers for better cards.
Frequently Asked Questions
Can I get a credit card if I have no credit history at all?
Yes. A secured card is your best option because approval does not depend on credit history — only on having a valid ID, a bank account, and money for the deposit. After 6 to 18 months of on-time payments, you will have enough history to move to a standard card.
What is the difference between a secured card and a prepaid card?
A secured card reports your payment activity to credit bureaus and helps you build credit. A prepaid card does not report to credit bureaus and does not help your credit score. If your goal is to rebuild credit, you need a secured card, not a prepaid card.
How long does it take to get approved for a secured card?
Most secured card applications are approved or denied within 1 to 3 business days. Once approved, the card itself arrives in 7 to 10 business days. The deposit usually clears and becomes your credit limit within 1 to 2 weeks after that.
Will explore for multiple cards at once hurt my credit score?
Yes. Each process creates a hard inquiry on your credit report, and multiple inquiries in a short time can lower your score by 5 to 10 points. Space out applications by at least 30 days if you are considering more than one card.
What if I get denied for a secured card?
Denial is rare for secured cards, but it can happen if you do not have a valid ID, a bank account, or money for the deposit. If you are denied, ask the issuer why — they are required to tell you. You can then address that specific issue before explore elsewhere.