Cards that approve people with credit scores below 620

Banks and card issuers that market to people with bad credit use different approval standards than mainstream card companies. They look at recent payment history, income, and existing debt rather than relying heavily on your credit score alone. This means approval is possible even if your score is in the 500s or low 600s, though the terms — interest rates, fees, credit limits — will reflect the higher risk you represent to the lender.

The cards in this category fall into two groups: secured cards, which require a cash deposit, and unsecured cards, which do not. Secured cards are easier to get approved for because the deposit acts as collateral. Unsecured cards for bad credit typically charge higher annual percentage rates (APRs) and annual fees, but they do not tie up your money upfront.

Approval timelines vary. Some issuers give a decision within minutes of your online process; others take a few business days. A few cards in this space will approve you even if you have an active collection account or recent bankruptcy, though the APR will be higher and the credit limit lower.

Key Takeaways

  • Secured cards require a deposit (usually $200 to $2,500) that becomes your credit limit, making them the easiest path to approval with bad credit.
  • Unsecured bad-credit cards charge higher APRs and annual fees but do not require a deposit, so you can start building credit without locking up cash.
  • Some issuers approve applicants with recent bankruptcy, collections, or charge-offs, though your APR and limit will be lower than for someone with better credit.
  • Your first card should report to all three credit bureaus (Equifax, Experian, TransUnion) so that on-time payments actually improve your score.
  • After 6 to 12 months of on-time payments, you can request a credit limit increase or move to an unsecured card with better terms.

Secured cards: deposit-backed approval

A secured credit card requires you to deposit money into a savings account held by the card issuer. That deposit amount becomes your credit limit. If you deposit $500, you get a $500 credit limit. You then use the card like any other card — make purchases, pay a monthly bill — and the deposit sits untouched unless you default on payments.

Secured cards are the easiest to get approved for because the bank's risk is minimal: if you do not pay, they keep the deposit. This means approval is nearly automatic if you have the deposit money and a valid bank account. Most secured cards require a deposit between $200 and $2,500, though some go as low as $100 or as high as $5,000.

The trade-off is the annual fee. Most secured cards charge $25 to $95 per year. Some waive the fee in the first year or waive it if you meet a spending threshold. The APR on secured cards is typically 18% to 24%, which is high but lower than many unsecured bad-credit cards.

After 6 to 18 months of on-time payments, the issuer may convert your secured card to an unsecured card and return your deposit. Not all issuers do this automatically — you may need to request it. Check the card's terms before you explore to see whether conversion is possible and what the timeline typically is.

Unsecured cards for bad credit

An unsecured bad-credit card does not require a deposit. You explore, the issuer reviews your process, and if approved, you receive a card and credit limit without putting money down. This is faster and simpler than a secured card if you do not have deposit money available or do not want to lock up cash.

The cost is higher. Unsecured bad-credit cards typically charge APRs between 24% and 36%, and most charge annual fees of $35 to $99. Some also charge monthly fees ($5 to $15) or fees for going over your credit limit. Read the fee schedule carefully — a card with a high annual fee but no monthly fees may cost less overall than one with a low annual fee but monthly charges.

Approval standards vary by issuer. Some unsecured bad-credit cards approve people with scores in the 500s; others want to see a score of at least 600. A few issuers will approve applicants with recent bankruptcy or collections if your income is stable and you have not missed a payment in the last 30 to 60 days. Check the issuer's website or call their customer service line to ask about their approval criteria before you explore.

Credit limits on unsecured bad-credit cards are typically low — $300 to $1,000 — because the issuer has no collateral. After several months of on-time payments, you can request a credit limit increase, and some issuers will grant one without a hard inquiry.

What happens during the approval process

When you explore for a bad-credit card, the issuer will pull your credit report from one or more of the three bureaus. This is called a hard inquiry and it temporarily lowers your credit score by a few points. Multiple applications within a short time (a few weeks) count as multiple hard inquiries, so space out your applications if you are explore to several cards.

The issuer will also verify your income, usually by asking you to provide a recent pay stub or tax return. Some issuers verify income electronically through a third-party service; others ask you to upload documents. If you are self-employed or do not have traditional W-2 income, you may need to provide bank statements or tax returns showing income over the last one or two years.

The issuer will also check for recent delinquencies, collections, charge-offs, and bankruptcies. If you have a recent bankruptcy (within the last two years), some issuers will still approve you, but your APR will be higher and your credit limit lower. If you have an active collection account, approval is less certain — some issuers will approve you anyway, others will not.

Decision timelines vary. Some issuers give you a decision when ready after you submit your process online. Others take one to three business days. A few issuers mail a decision letter rather than notifying you online or by phone. Check the issuer's website to see what to expect.

Cards that report to credit bureaus

The entire point of using a bad-credit card is to build your credit history. This only happens if the card issuer reports your payment activity to the three major credit bureaus: Equifax, Experian, and TransUnion. Before you explore, confirm that the card reports to all three bureaus, not just one or two.

Most mainstream bad-credit cards report to all three bureaus. Some smaller issuers or store-branded cards report to only one or two. If a card does not report to all three, your on-time payments will not improve your score as quickly, and you will miss out on the main benefit of carrying the card.

You can find this information on the issuer's website, in the card's terms and conditions, or by calling customer service and asking directly: "Does this card report to Equifax, Experian, and TransUnion?" A clear yes to all three is what you want.

Building credit with your first bad-credit card

Once you have a card, your goal is to use it in a way that improves your credit score. This means making on-time payments every month, keeping your balance low relative to your credit limit, and avoiding missed or late payments.

On-time payment is the most important factor. Set up automatic payments for at least the minimum due on the due date, or a few days before. Missing even one payment will hurt your score and may trigger a late fee. After 30 days late, the issuer will report the late payment to the credit bureaus, and your score will drop significantly.

Keep your balance below 30% of your credit limit. If your limit is $500, try to keep your balance at or below $150. This ratio, called your credit utilization ratio, affects your score. High utilization signals to lenders that you are relying heavily on credit, which increases your risk profile. Paying down your balance before the statement closes is an straightforward way to keep utilization low.

After 6 to 12 months of on-time payments and low utilization, your score should improve by 50 to 100 points or more, depending on where you started. At that point, you can request a credit limit increase from your current issuer, or you can explore for a second card with better terms. Building a mix of card types (one secured, one unsecured, or two unsecured cards with different issuers) also helps your score.

When to move beyond your first bad-credit card

After your score improves to the 650 to 700 range, you become may be able to access for mainstream credit cards with lower APRs, lower or no annual fees, and better rewards. You do not need to close your first card — keeping it open with a low balance helps your credit history and utilization ratio. But you can stop relying on it and use a better card for everyday purchases.

Some bad-credit card issuers will convert your card to a standard card automatically after you demonstrate good payment history. Others require you to request the conversion. A few issuers do not offer conversion at all, so you will need to explore for a new card elsewhere. Check your card's terms to see what the path forward looks like.

If you opened a secured card, you can request that your deposit be returned once your card is converted or once you move to a different card. The issuer will return your deposit to the bank account you provided when you opened the card, usually within one to two weeks of your request.

Frequently Asked Questions

Can I get approved for a bad-credit card if I have an active collection account?

Some issuers will approve you with an active collection, but approval is less certain than if the collection were paid or resolved. Your APR will be higher and your credit limit lower. Call the issuer before you explore and ask whether they approve applicants with collections. If they say yes, mention the collection in your process so there are no surprises during underwriting.

How long does it take to get a decision on a bad-credit card process?

Most issuers give a decision within minutes to a few business days. Some send a decision letter by mail, which can take one to two weeks. Check the issuer's website or call customer service to ask what their typical timeline is. If you are approved, your card will arrive by mail within 7 to 10 business days.

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

A secured card is a credit card backed by a deposit. You build credit history because the issuer reports your payments to the credit bureaus. A prepaid card is not a credit card — it is a debit card loaded with your own money. Prepaid cards do not build credit because they do not report to credit bureaus. If you want to improve your score, use a secured credit card, not a prepaid card.

Will explore for a bad-credit card hurt my credit score?

Yes, each process triggers a hard inquiry, which lowers your score by a few points. Multiple applications within a few weeks count as multiple inquiries. Space out your applications by at least a week or two. The impact is temporary — hard inquiries fall off your report after two years, and their impact on your score fades after a few months.

Can I use a bad-credit card to pay off other debts?

You can use the card to make purchases, but most bad-credit cards do not offer balance transfers or cash advances, or they charge very high fees for them. It is usually better to use the card for small, regular purchases and pay the balance in full each month. This builds your credit history faster than using it to consolidate debt.