Secured cards and store cards approve more applicants with low credit scores
The easiest cards to get approved for when you have poor credit are secured credit cards and retail store cards. Secured cards require a cash deposit that becomes your credit limit — typically $200 to $2,500 — and issuers approve most applicants who can put down that deposit, regardless of credit score. Store cards from retailers like Amazon, Target, and Walmart often approve people with credit scores in the 550–650 range because the issuer makes money on purchases, not just interest.
The approval odds shift in your favor because these issuers take on less risk. A secured card issuer holds your deposit as collateral. A store card issuer knows you shop there already and can track your spending in their system. Both reduce their loss if you default, so they approve applicants that traditional issuers would decline.
The trade-off is that these cards come with higher interest rates (often 18–25% APR), annual fees on secured cards ($0–$95), and lower credit limits. But they work: secured cards are designed to rebuild credit, and after 12–24 months of on-time payments, many issuers convert them to unsecured cards with better terms.
Key Takeaways
- Secured cards approve applicants with credit scores below 600 because your cash deposit acts as collateral, and most people who can deposit $200–$2,500 will be approved.
- Retail store cards from major chains often approve people with scores in the 550–650 range because the issuer profits from your purchases, not just interest charges.
- Both card types carry higher interest rates and fees than traditional cards, but they report to all three credit bureaus and rebuild your score when you pay on time.
- After 12–24 months of on-time payments, many secured cards convert to unsecured cards with lower rates and no annual fee, making them a path rather than a permanent solution.
How secured cards work and why approval is nearly automatic
A secured card requires you to open a savings account with the card issuer and deposit money — usually $200 to $2,500 — that the bank holds. Your credit limit equals your deposit (or sometimes a percentage of it). Because the bank has your money as collateral, they approve you even if your credit score is 500 or lower, as long as you can make the deposit and pass basic identity checks.
The issuer makes money through interest charges on your balance and annual fees, not by taking risk on your creditworthiness. This is why approval is nearly may provide: the bank's downside is capped. If you stop paying, they keep your deposit. You lose the money you put down, but the bank does not lose money on the loan itself.
The deposit stays in the savings account and earns little to no interest (usually 0.01% APR or less). You cannot touch it while the card is active, though some issuers let you withdraw it after you convert to an unsecured card or close the account. The card itself works like any other: you charge purchases, receive a statement, and pay a bill each month.
Retail store cards and why they approve lower credit scores
Store cards from Amazon, Target, Walmart, Kohl's, and Best Buy often approve people with credit scores between 550 and 650 — ranges where traditional issuers would decline you. These cards are easier to get because the retailer profits from your purchases, not from interest income. If you use the card to buy things at their store, they win even if you carry a balance.
Store card issuers also have data you do not realize they have. If you shop at Target regularly, Target's credit subsidiary (Synchrony) has a record of your purchase history, how often you visit, and whether you have ever missed a payment to them before. That history matters more than your credit score. A person with a 580 credit score who has shopped at Target for three years and never missed a payment is a lower risk to Target than a person with a 650 score who has never shopped there.
The downside is that store cards have higher interest rates (often 20–25% APR) and limited use — you can only use them at that retailer (or a small network of affiliated stores). Some store cards have annual fees, though many do not. The credit limit is usually lower than a traditional card, often $300–$1,000 to start.
Comparing approval odds: secured cards versus store cards
| Feature | Secured Card | Store Card |
|---|---|---|
| Typical credit score approved | 500 and up (nearly all applicants) | 550–650 (varies by retailer) |
| What you need to get approved | Cash deposit ($200–$2,500) | Active shopping history at that store (helpful but not required) |
| Interest rate (APR) | 18–25% | 19–25% |
| Annual fee | $0–$95 | Usually $0 |
| Where you can use it | Anywhere that accepts Visa or Mastercard | Only at that retailer (or affiliated stores) |
| Path to unsecured card | Yes, after 12–24 months of on-time payments | Rarely; most stay store-only |
| Reports to credit bureaus | Yes, all three | Yes, all three |
Other cards with higher approval rates for poor credit
Credit builder cards are a newer category that works similarly to secured cards but with a twist: you do not deposit money upfront. Instead, you make monthly payments to a savings account, and the card issuer reports those payments to the credit bureaus. After 12 months, you own the savings account and the card converts to unsecured. These cards approve people with credit scores below 600 and charge annual fees ($48–$99) but no interest if you pay on time. The catch is that your credit limit is low (usually $200–$500) and you are paying to build credit rather than using credit to build it.
Gas station and grocery store cards from chains like Shell, Chevron, or Kroger sometimes approve people with lower credit scores because they are co-branded with a bank and the retailer has a financial incentive to sign you up. These cards are easier to get than traditional bank cards but harder than secured cards. Approval depends on your recent payment history and income, not just your credit score.
Second-chance checking accounts with debit cards are not credit cards, but they are worth mentioning: if you cannot get approved for any credit card, some banks offer checking accounts designed for people with poor banking history. These come with a debit card (not a credit card) and do not build credit, but they let you access banking services when traditional banks decline you.
What happens after you get approved
Once approved, your card issuer reports your account to Equifax, Experian, and TransUnion — the three major credit bureaus. This means every payment you make (or miss) affects your credit score. If you pay on time every month, your score rises. If you miss a payment, it drops and stays on your report for seven years.
The goal with a secured card is to use it lightly and pay it off in full each month. Charge a small recurring bill (like a streaming service at $10–$15 per month) and set up automatic payments. This shows the issuer you can handle credit responsibly without risking a missed payment. After 12–24 months, the issuer will review your account and may convert it to an unsecured card, returning your deposit and lowering your interest rate.
With a store card, the same principle applies: use it for small purchases you would make anyway, and pay the full balance each month. Store cards are harder to convert to traditional cards, so think of them as a tool to rebuild credit at that specific retailer, not as a stepping stone to a general-purpose card.
Mistakes to avoid when explore
Do not explore for multiple cards in a short time. Each process triggers a hard inquiry, which temporarily lowers your credit score by a few points. Multiple inquiries in a month signal to issuers that you are desperate for credit, which raises their risk perception. Space applications out by at least two weeks.
Do not assume you will be approved just because the card markets itself as straightforward to get. Even secured cards and store cards have minimum requirements: you need a valid Social Security number, a U.S. address, and proof of income (for some issuers). If you have unpaid collections or a recent bankruptcy, some issuers will still decline you.
Do not carry a balance on a secured card thinking it will rebuild your credit faster. Paying interest does not rebuild credit; paying on time does. Carrying a balance costs you money and does not improve your score any more than paying in full does.
Do not close the secured card when ready after it converts to unsecured. Closing it removes available credit from your credit report, which can lower your score. Keep it open and use it occasionally, even after you have other cards.
Frequently Asked Questions
What credit score do I need to get approved for a secured card?
Most secured card issuers approve applicants with credit scores of 500 and above, and many approve people with no credit score at all. The main requirement is having the cash deposit. Some issuers have a minimum income requirement ($10,000–$25,000 per year) but do not check your credit score at all.
Will a store card help me rebuild credit as much as a secured card?
Yes, both report to all three credit bureaus and rebuild your score equally well if you pay on time. The difference is that a store card only works at one retailer, while a secured card works everywhere. If you shop at that store regularly, a store card is easier (no deposit required), but a secured card is more flexible.
How long does it take to convert a secured card to unsecured?
Most issuers review your account after 12–24 months of on-time payments. Some convert automatically; others require you to request the conversion. A few issuers never convert secured cards to unsecured, so check the issuer's policy before you explore. When conversion happens, your deposit is returned to you.
Can I get approved for a secured card if I have a recent bankruptcy?
Yes, most secured card issuers approve people with recent bankruptcies as long as the bankruptcy is discharged (closed). Some issuers have a waiting period of 12–24 months after discharge. A store card may be harder to get when ready after bankruptcy, but secured cards are designed for people rebuilding from serious credit damage.
What if I cannot afford the deposit for a secured card?
Credit builder cards do not require an upfront deposit; instead, you make monthly payments that build a savings account. Some charge annual fees ($48–$99) but no interest. Alternatively, look for store cards at retailers where you already shop, since they do not require a deposit and may approve you based on your shopping history.