Credit cards come from banks, credit unions, and online lenders — each with different approval standards and card types

You can get a credit card from three main sources: traditional banks (Chase, Bank of America, Wells Fargo), credit unions you belong to, and online-only lenders (Discover, Capital One, American Express). Each source has different approval rules, card designs, and what they charge in fees. Where you can get approved depends mostly on your credit score, income, and whether you have a banking relationship with them already.

Banks tend to offer the most rewards and lowest interest rates, but they usually want a credit score of 670 or higher. Credit unions often approve people with lower scores if you've been a member for a while. Online lenders approve the widest range of credit histories, including people rebuilding credit, but their cards usually come with higher annual percentage rates (APRs) and annual fees.

Key Takeaways

  • Banks offer the best rewards and lowest rates but require higher credit scores, while online lenders approve lower scores but charge more in interest and fees.
  • Credit unions often have lower approval standards for existing members and may offer cards designed for people building credit.
  • You can explore online, by phone, or in person at a branch, and most decisions come within minutes to a few days.
  • Your credit score, income, and existing banking relationship all affect which cards will approve you.
  • Comparing cards before you explore helps you avoid multiple hard inquiries that temporarily lower your credit score.

Banks: Where most people get credit cards

The largest card issuers are banks. Chase, Bank of America, Wells Fargo, Citibank, and Capital One all issue credit cards directly. You can explore online on their websites, call their phone number, or walk into a branch. Most online applications take 15 minutes and give you a decision within minutes or a few business days.

Banks separate their cards into tiers based on your credit score. Premium cards (like the Chase Sapphire Preferred) want a score of 750 or higher and offer travel rewards, cash back, and low APRs. Mid-tier cards (like the Chase Freedom Unlimited) typically want 670 to 749 and offer modest rewards. Starter or "secured" cards from banks want a score of 580 to 669 and require a cash deposit, but they help you build credit.

The catch: banks deny applications from people with scores below 580 or with recent late payments, collections, or bankruptcy. If you explore and get denied, you can ask why — the bank must tell you under the Fair Credit Reporting Act. Asking why does not hurt your score further.

Credit unions: Lower approval standards for members

Credit unions are member-owned financial institutions, and many issue their own credit cards. You must be a member to get one. Membership usually requires living or working in a specific area, belonging to a certain employer, or being related to someone who is already a member. You can search for credit unions near you at CO-OP.org or CUServiceCenters.org.

Credit unions often approve people with credit scores as low as 600 if you have been a member for at least six months. Some credit unions have cards specifically for people rebuilding credit, with lower limits and higher APRs than their standard cards, but they report to all three credit bureaus so your payments help your score. The process process is usually slower than banks — expect one to two weeks — but the approval standards are more flexible.

Credit unions also tend to charge lower annual fees and have lower APRs than online lenders, even for people with lower credit scores. If you do not belong to a credit union yet, joining takes 10 to 15 minutes online or in person.

Online lenders: Fastest approval for lower credit scores

Online-only card issuers like Discover, Capital One, and American Express approve people with credit scores as low as 500. They do not require you to have a banking relationship with them first. You explore entirely online, and most give you a decision within minutes. If approved, your card ships within five to seven business days.

The trade-off is cost. Online lenders' cards for people with lower credit scores usually have APRs between 24% and 36%, compared to 15% to 22% at banks or credit unions. Many also charge annual fees of $25 to $99. Some online lenders offer cards with no annual fee but higher APRs. Read the terms carefully before you explore — the APR and annual fee are the two numbers that matter most.

Online lenders are useful if you have been denied by banks and credit unions, or if you need a card when ready. They also report to all three credit bureaus, so on-time payments help you build credit and move toward approval for better cards later.

Retail and store cards: Easier approval, higher interest rates

Stores like Target, Walmart, Amazon, and Costco issue their own credit cards. These cards work only at that store (or a small network of stores), but approval standards are much looser — many approve people with credit scores below 600. You can explore at checkout, on the store's website, or by phone.

Store cards have very high APRs, often 24% to 30%, and limited usefulness outside that store. They are worth considering only if you shop at that store regularly and can pay the balance in full each month. If you carry a balance, the interest charges will quickly exceed any discount the store offers.

Secured credit cards: Building credit when you have been denied

A secured card requires you to put down a cash deposit, usually $200 to $2,500, which becomes your credit limit. Banks, credit unions, and online lenders all offer secured cards. You use the card like a normal card, and your on-time payments are reported to the credit bureaus.

Secured cards are designed for people rebuilding credit after a late payment, collection, or bankruptcy. After 12 to 24 months of on-time payments, the issuer usually converts your card to a regular (unsecured) card and returns your deposit. Some issuers will convert sooner if your credit score improves.

The deposit is not a fee — you get it back. But the card usually charges an annual fee of $25 to $75 on top of the deposit. Compare secured cards by APR and annual fee before you choose one. Discover and Capital One both offer secured cards with no annual fee, which is rare.

What happens when you explore

When you explore for a credit card, the issuer pulls your credit report from one or more of the three bureaus (Equifax, Experian, TransUnion). This is called a hard inquiry and temporarily lowers your credit score by a few points. The inquiry stays on your report for two years but stops affecting your score after about three months.

Multiple applications in a short time (within 14 days) usually count as one inquiry for scoring purposes, so comparing cards and explore to a few on the same day is better than spreading applications over weeks. Avoid explore to more than three cards in 30 days — each additional process signals to lenders that you are desperate for credit, which makes approval less likely.

After you explore, the issuer checks your income, employment, and debt. They may ask for documents like a recent pay stub or tax return. If approved, you get a card number when ready (sometimes to use online right away) and a physical card ships within five to seven business days. If denied, you have the right to know why.

Frequently Asked Questions

Can I get a credit card with no credit history?

Yes, but your options are limited. Secured cards from banks or online lenders are the most common path. You put down a deposit, use the card responsibly, and after 12 to 24 months you move to a regular card. Some credit unions also offer starter cards for members with no credit history.

What credit score do I need to get approved?

It depends on the card. Premium bank cards want 750 or higher. Mid-tier bank cards want 670 to 749. Starter bank cards and credit union cards want 600 to 669. Online lenders approve as low as 500. Store cards often approve below 600. If you do not know your score, you can check it free at AnnualCreditReport.com or through your bank.

Does explore for a credit card hurt my credit score?

Yes, temporarily. Each process triggers a hard inquiry that lowers your score by a few points. The impact fades after three months and disappears after two years. Multiple applications within 14 days usually count as one inquiry, so explore to several cards on the same day if you are comparing options.

What is the difference between a secured card and a regular card?

A secured card requires a cash deposit that becomes your credit limit. A regular card does not. Secured cards are for people rebuilding credit. After 12 to 24 months of on-time payments, most issuers convert your secured card to a regular card and return your deposit.

Can I get a credit card if I have been denied before?

Yes. If a bank denied you, try a credit union (if you can join one) or an online lender. If both deny you, a secured card is your next step. Each issuer uses different criteria, so denial from one does not mean denial from all. Wait at least 30 days before explore again to the same issuer — reapplying when ready will be denied.