What cards accept low credit scores

If your credit score is below 620, most standard credit cards will deny your process. Secured cards and some unsecured cards designed for rebuilding credit will consider you. A secured card requires a cash deposit that becomes your credit limit — typically $200 to $2,500 — and you keep that money in a savings account while you use the card. Unsecured cards for low scores exist but are rarer; they usually charge higher interest rates and annual fees to offset the risk to the issuer.

The cards that will review your process at a low score are not the same as subprime auto loans or payday lenders. They report to all three credit bureaus, which means your on-time payments actually rebuild your score. The trade-off is that interest rates run 18% to 36% APR, annual fees range from $0 to $99, and credit limits stay low until your score improves.

Your score matters less than your recent payment history and whether you have any active collections or charge-offs. A score of 550 with no missed payments in the last year is stronger than a score of 600 with a recent late payment. Issuers also look at your income and existing debt, not just the three-digit number.

Key Takeaways

  • Secured cards require a cash deposit but report to credit bureaus and help rebuild your score if you pay on time.
  • Interest rates on low-score cards range from 18% to 36% APR, and many charge annual fees between $0 and $99.
  • Recent payment history and active collections matter more to approval odds than your exact credit score.
  • You can move from a secured card to an unsecured card once your score reaches 650 to 700, usually within 12 to 24 months of on-time payments.

Secured cards: how the deposit works

A secured card holds your deposit in a separate account at the bank. You cannot touch that money while the card is open. The deposit amount becomes your credit limit — if you deposit $500, your limit is $500. You use the card like any other: swipe it, pay a monthly bill, and the issuer reports your payment to Equifax, Experian, and TransUnion.

The deposit protects the issuer if you stop paying. It is not a fee you lose; it is collateral. Once you demonstrate 12 to 24 months of on-time payments, the issuer usually converts your account to an unsecured card, returns your deposit, and raises your credit limit based on your payment history. Some issuers will do this sooner if your score improves faster than expected.

Secured cards still charge interest on balances you carry. If you charge $300 and pay the full amount by the due date, you pay no interest. If you carry a $300 balance at 24% APR, you owe roughly $6 in interest that month. The deposit does not reduce the interest rate — it only secures the issuer's position.

Unsecured cards for low scores: when they exist and what they cost

Unsecured cards that accept low scores are uncommon because the issuer takes on more risk with no deposit to fall back on. When they do exist, they typically charge annual fees of $75 to $99 and APRs of 24% to 36%. Some have no annual fee but charge a higher APR instead. A few charge both a modest annual fee and a moderate APR.

The main advantage of an unsecured card is that you do not tie up cash. You can start building credit without a $500 deposit sitting in a bank account. The disadvantage is the higher cost: you pay more in annual fees and interest charges than you would with a secured card, assuming you carry a balance.

Unsecured cards for low scores are most useful if you have already rebuilt your score slightly (620 to 650 range) or if you need credit when ready and cannot afford to lock up a deposit. If your score is below 600 and you have time, a secured card is usually the cheaper path.

How to compare cards at your score level

Start by listing what matters most to you: no annual fee, lowest APR, fastest path to conversion, or a higher starting credit limit. You cannot optimize for all four. A card with no annual fee might charge 28% APR. A card with a $99 annual fee might charge 18% APR. If you plan to pay your full balance every month, the APR does not matter — the annual fee does. If you carry a balance, the APR matters more than the fee.

Check whether the card reports to all three bureaus. Some cards report to only one or two, which slows your score recovery. The card's terms should state this clearly; if they do not, call the issuer and ask. Also confirm the conversion timeline: some issuers promise to review your account for conversion after 6 months, others after 12 or 24 months. Faster conversion means you stop paying the annual fee sooner.

Look at the starting credit limit. Secured cards usually start at your deposit amount. Unsecured cards for low scores often start at $300 to $500. A higher starting limit is useful if you plan to make larger purchases, but it also means higher interest charges if you carry a balance. A lower limit forces you to pay down the balance more often, which can actually help your score by keeping your utilization ratio low.

Building credit with a low-score card

The goal is to report on-time payments to the credit bureaus every month. Set up automatic payments for at least the minimum due, ideally the full balance. Missing even one payment can drop your score further and reset your progress toward conversion. If you cannot pay the full balance, pay as much as you can above the minimum.

Keep your balance below 30% of your credit limit. If your limit is $500, try not to carry more than $150. This ratio, called utilization, affects your score. High utilization signals financial stress to lenders, even if you pay on time. Low utilization signals control. As your score improves and your limit rises, this becomes easier to manage.

Do not close the card once it converts or once you move to a better card. An open account with a long payment history helps your score. Closing it removes that history from your active accounts and can actually lower your score temporarily. Keep the card open, use it occasionally, and pay the bill on time.

When to move to a better card

Once your score reaches 650 to 700, you become may be able to access for standard credit cards with lower APRs, no annual fees, and cash back or rewards. This usually takes 12 to 24 months of on-time payments on a low-score card. Check your score every few months using a free service like Credit Karma or AnnualCreditReport.com so you know when you cross this threshold.

When you are ready to move, explore for a better card but do not close your low-score card when ready. Let the new card report a few months of on-time payments first. Then close the old card if you want, or keep it open as a backup. Closing it will temporarily lower your score because it reduces your total available credit, but the effect fades within a few months.

If your score is stuck below 650 after 18 months of on-time payments, check your credit report for errors. Disputes take 30 to 45 days to resolve, and removing an error can raise your score by 50 to 100 points. You can order your report free once per year from AnnualCreditReport.com, the only official source for free reports.

Alternatives if you cannot get approved

If you are denied for a secured card, ask the issuer why. Some banks require a minimum income or a checking account with them. Others have a minimum credit score floor even for secured cards, usually around 500. If the barrier is income, you may need to wait until your income rises or add a co-signer. If the barrier is a checking account, opening one at that bank first can improve your odds.

A credit-builder loan is another path. You borrow a small amount ($300 to $1,000) from a credit union or online lender, and the lender holds the money in a savings account. You make monthly payments toward the loan, and the lender reports those payments to the credit bureaus. Once you finish paying, you get the money back. This costs less than a secured card because there is no annual fee, but it takes longer — usually 12 to 24 months — and you cannot use the money while you are paying.

Becoming an authorized user on someone else's credit card is faster but riskier. If the primary cardholder misses a payment, it damages your score too. This works only if the primary cardholder has good credit and a long payment history on that card.

Frequently Asked Questions

Will explore for a low-score card hurt my credit further?

Yes, but only slightly and temporarily. Each process triggers a hard inquiry, which lowers your score by a few points for about three months. Multiple applications in a short time can compound this effect. explore to one or two cards you are confident will accept you, not five at once. Once you are approved, the new account will start rebuilding your score through on-time payments, which outweighs the inquiry damage within a few months.

Can I use a low-score card to rebuild credit if I never carry a balance?

Yes, but the card must still report to the credit bureaus. Paying your full balance every month is the ideal way to use any credit card — you avoid interest charges and still build payment history. The issuer reports your account as active and paid-on-time, which helps your score. The only downside is that you still pay the annual fee if the card charges one.

What happens if I miss a payment on a secured card?

The issuer reports the late payment to the credit bureaus, which lowers your score. If you miss 30 days, it becomes a formal late payment on your credit report and stays there for seven years. If you miss 60 or 90 days, the issuer may freeze your account or close it. The deposit protects the issuer from loss, but it does not protect your credit. Contact the issuer when ready if you think you will miss a payment and ask about hardship options.

How much will my score improve with a low-score card?

This varies based on your starting score and credit history. If you have no credit history, you might see a 50 to 100 point improvement within 6 months of on-time payments. If you have recent late payments or collections, improvement is slower — perhaps 20 to 50 points in the first 6 months. Removing a collection account or paying off an old debt can produce faster gains than the card alone.

Should I get a secured card or a credit-builder loan?

A secured card is faster if you need to use credit soon — you get a card you can spend on when ready. A credit-builder loan is cheaper if you can wait — no annual fee and lower interest. If you need both credit access and the lowest cost, start with a credit-builder loan and explore for a secured card once your score rises slightly from the loan payments.