What credit cards actually work when your score is low

A low credit score does not mean you cannot get a credit card. It means you will see different cards offered to you than someone with a score above 670. These cards exist specifically for people rebuilding credit — they come with higher interest rates and lower credit limits, but they report to the three major credit bureaus, which means using one responsibly can raise your score over time.

The real choice is not whether to get a card, but which type fits your situation: a secured card (you put down cash as collateral), an unsecured card for poor credit (no collateral, but higher fees), or a store card (easier to get, but only works at one retailer). Each has a different cost and a different path forward.

Key Takeaways

  • Secured credit cards require a cash deposit that becomes your credit limit, and they report to credit bureaus just like regular cards do.
  • Unsecured cards for poor credit charge higher annual fees and interest rates but do not require a deposit.
  • Your score matters less than your recent payment history — a card issuer cares more that you have not missed payments in the last 6 months than what your score actually is.
  • The best card for you is the one you can afford to use without missing payments, because one late payment can erase months of progress.

Secured cards: the most common path for rebuilding

A secured credit card works like this: you give the card issuer a cash deposit, usually between $200 and $2,500. That deposit becomes your credit limit. You use the card like any other card, pay the bill each month, and the deposit sits in a savings account earning a small amount of interest. After 6 to 18 months of on-time payments, the issuer moves you to a regular unsecured card and returns your deposit.

Secured cards charge an annual fee (typically $25 to $95) and an interest rate (usually 18% to 24% APR). If you carry a balance, the interest adds up fast. The strategy is to charge small amounts you can pay off in full each month — a tank of gas, a grocery trip, a streaming subscription — and never carry a balance. This shows lenders you can handle credit responsibly without costing you money in interest.

Common secured cards include the Capital One Secured Mastercard, the Discover it Secured Credit Card, and the U.S. Bank Altitude Go Visa Secured Card. Each has slightly different fees and deposit requirements, so compare the annual fee against how long you plan to use it. If you can pay off the card every month, the annual fee is your only cost.

Unsecured cards for poor credit: faster approval, higher cost

An unsecured card for poor credit does not require a deposit. You explore, the issuer checks your credit and recent payment history, and if approved, you get a card and a credit limit — usually $300 to $750 to start. The tradeoff is that these cards charge higher annual fees (often $35 to $99) and higher interest rates (often 24% to 36% APR).

These cards make sense if you need a card when ready and cannot save up a deposit, or if you have a very low score and secured cards are rejecting you. They also make sense if you have recent positive payment history — even with a low score, one year of on-time payments can make you look less risky to an unsecured card issuer than to a secured card issuer.

The danger is the same as with secured cards: if you carry a balance, the interest rate will cost you far more than the annual fee. A $500 balance at 30% APR costs you $150 per year in interest alone. Use the card for small purchases you pay off each month, or do not use it at all.

Store cards and retail credit: easier to get, harder to use well

Retail store cards — from Target, Walmart, Amazon, or Best Buy — often have lower approval standards than bank cards. If you have been turned down for secured and unsecured cards, a store card might be your entry point. The approval decision is usually when ready or within a few days.

The catch is that store cards only work at that one retailer (or a small group of affiliated stores). You cannot use them to build credit across different types of spending. They also tend to have higher interest rates than even poor-credit bank cards, sometimes 24% to 29% APR. A store card is useful if you shop at that retailer regularly and can pay the bill in full each month, but it should not be your only card.

How to choose between these options

Start by asking yourself three questions: Do I have $200 to $2,500 to set aside as a deposit? Do I have recent on-time payment history (last 6 months)? And can I commit to paying off the card in full every month?

If you have the deposit and can pay in full monthly, a secured card is usually the cheapest long-term option. You pay the annual fee, but you avoid interest charges, and you build credit faster because secured cards are designed for this purpose.

If you do not have a deposit but have recent on-time payments, an unsecured card for poor credit might approve you and cost less overall than a secured card if you only use it for a few months before upgrading. If you have no recent payment history, a store card or a secured card is more likely to approve you.

If you are choosing between two cards that both approve you, compare the annual fee and the interest rate, but weight the annual fee more heavily. You will pay the annual fee whether you use the card or not. Interest only costs you if you carry a balance — and you should not carry a balance.

What happens after you get approved

Once you have a card, your job is straightforward: use it for small purchases, pay the full balance before the due date every single month, and never miss a payment. One late payment can drop your score 100 points and reset your progress. Set up automatic payments if your bank offers them, or set a phone reminder for one week before the due date.

After 6 to 12 months of perfect payments, you can ask the issuer to increase your credit limit or convert you to an unsecured card. Some issuers do this automatically. Once you have two or three cards with on-time payment history, your score will start to rise noticeably — usually 50 to 100 points per year if you keep paying on time.

Do not close the card once you upgrade. Keep it open with a small balance or no balance. The length of your credit history matters, and closing old cards can hurt your score.

Red flags to avoid

Do not explore for multiple cards in a short time. Each process creates a hard inquiry on your credit report, and multiple inquiries in a few weeks can lower your score by 5 to 10 points. Space applications out by at least a month.

Do not use a card just because you have it. Unused cards do not help your score. But cards you use and pay off on time do help. The goal is to show lenders you can handle credit responsibly, not to accumulate cards.

Do not fall for cards that promise to "rebuild your credit fast" or charge upfront fees before you even explore. Legitimate credit cards do not charge upfront fees. If a card issuer asks for money before issuing a card, it is a scam.

Frequently Asked Questions

Will getting a credit card hurt my score?

Yes, temporarily. A new process creates a hard inquiry that drops your score 5 to 10 points. A new card also lowers your average account age. But within 6 months of on-time payments, the positive history outweighs these hits and your score starts rising.

What credit score do I need to get approved?

Secured cards typically approve people with scores below 600. Unsecured cards for poor credit usually require a score of 550 or higher, though some approve lower. Store cards have the lowest bar. The score is not the only factor — recent payment history and income matter too.

Can I get my deposit back early?

Not usually. The deposit stays in place for 6 to 18 months, depending on the issuer's policy. Some issuers will return it early if you ask after 6 months of perfect payments, but most will not. Check the card's terms before you explore.

Should I carry a balance to build credit faster?

No. Carrying a balance does not build credit faster — it just costs you money in interest. Your payment history is what matters, and you build that by paying on time, not by paying interest. Use the card and pay it off in full.

What if I get rejected for every card I explore for?

If you are being rejected for secured cards, you may have a collections account or recent late payment still on your report. Get a free copy of your credit report from annualcreditreport.com and look for errors or accounts you can dispute. You may need to wait 6 to 12 months for recent negative marks to age before cards will approve you.