Cards that approve people with limited or poor credit history
The easiest credit cards to get are secured credit cards and cards designed for people building credit. These require either a cash deposit or accept applicants with credit scores below 600. Secured cards ask you to put down $200 to $2,500 as collateral, and your credit limit matches that deposit. Unsecured cards for people building credit have no deposit requirement but charge higher interest rates and annual fees.
The actual approval odds depend on what you're starting with. If you have no credit history at all, a secured card from your own bank is often the fastest path — you already have a relationship there, and the deposit removes the lender's risk. If you have a credit score between 550 and 669, cards marketed toward "fair credit" or "rebuilding credit" will review your application seriously. If your score is below 550, a secured card is almost always your only option.
Approval timelines vary. Some cards give you an answer within minutes of applying online. Others take three to five business days. A few still require you to apply in person at a branch or by mail. The deposit-based cards tend to move faster because the underwriting is simpler — they're mainly checking that you're not on a fraud list.
Key Takeaways
- Secured credit cards require a cash deposit but approve people with credit scores below 600 or no credit history at all.
- Unsecured cards marketed for "fair credit" or "rebuilding credit" have no deposit but charge annual fees and higher interest rates.
- Your own bank or credit union often approves you faster than a national card issuer because they already know your account history.
- Approval can happen in minutes online or take up to five business days by mail, depending on the card and how you apply.
- The easiest cards to get are not the best cards to keep — compare annual fees, interest rates, and whether the card reports to all three credit bureaus before you choose.
Secured cards versus unsecured cards for rebuilding credit
A secured card requires you to deposit money into a savings account held by the card issuer. That deposit becomes your credit limit. You then use the card like any other — make purchases, pay a monthly bill — and the issuer reports your payment history to the credit bureaus. After 12 to 24 months of on-time payments, many issuers will convert your account to an unsecured card and return your deposit.
An unsecured card for fair credit works like a regular credit card but with stricter terms. You don't put down a deposit. Instead, the issuer takes on the risk by charging you a higher interest rate (often 24% to 36% annual percentage rate) and an annual fee ($39 to $99). These cards still report to the credit bureaus, so they help you build history the same way a secured card does.
The choice between them depends on whether you have cash available. If you can set aside $300 to $500, a secured card usually costs less over time because the interest rate is lower and there's no annual fee. If you don't have that cash, an unsecured card for fair credit is your option, though you'll pay more in fees and interest if you carry a balance.
Where to look: banks, credit unions, and card companies
Your own bank or credit union is the first place to check. They already have your account history, employment information, and payment patterns. Many will approve you for a secured card or a basic unsecured card even if you have poor credit, because they're not starting from zero. Call the branch or log into your online account to see what they offer.
National card issuers like Capital One, Discover, and Chime also offer cards specifically for people building credit. These companies have approval criteria published on their websites, so you can read what they're looking for before you apply. Discover's secured card, for example, reports to all three credit bureaus and has no annual fee — unusual for a secured card. Capital One's Platinum card is unsecured and approves people with limited credit history.
Credit unions sometimes have better terms than banks or national issuers. If you're a member of a credit union, ask whether they offer a secured card or a card for people with fair credit. Credit unions are nonprofits and often charge lower fees and interest rates than for-profit card companies.
What happens during the approval process
When you apply, the card issuer will pull your credit report and check your credit score. They'll also verify your income, employment status, and whether you have any recent late payments or collections accounts. If you're applying for a secured card, they'll confirm you have the cash to deposit.
The issuer is looking for signs that you'll repay what you borrow. A low credit score doesn't automatically disqualify you — many people with scores below 600 get approved for secured cards. What matters more is whether you have recent missed payments or unpaid debts. If your last late payment was three years ago and you've been on time since, you have a better chance than someone who missed a payment last month.
If you're denied, ask why. The issuer must tell you the reason under the Fair Credit Reporting Act. Common reasons include too many recent credit inquiries, too much existing debt relative to your income, or a recent bankruptcy. Some of these you can fix before reapplying — paying down debt, waiting a few months for inquiries to age off your report, or reapplying after a bankruptcy has been on your record for longer.
Annual fees, interest rates, and credit bureau reporting
Before you choose a card, compare three things: the annual fee, the interest rate, and whether the card reports to all three credit bureaus (Equifax, Experian, and TransUnion).
Annual fees range from $0 to $99 on cards for people building credit. Secured cards often have no annual fee. Unsecured cards for fair credit usually charge $39 to $99. If you're paying an annual fee, make sure the card reports to all three bureaus — otherwise you're paying to build credit history that only one or two bureaus see.
Interest rates (called the annual percentage rate, or APR) on these cards typically run 18% to 36%. The rate you get depends on your credit score and the card issuer's decision. You won't know your exact rate until after you're approved. If you plan to carry a balance, a lower APR saves you money. If you'll pay off the card in full each month, the APR matters less.
Credit bureau reporting is what actually builds your credit score. If a card reports only to one bureau, you're missing out on two-thirds of the benefit. Most major card issuers report to all three, but some smaller ones don't. Check the card's terms or call the issuer to confirm before you apply.
How to use a card to actually improve your credit score
Getting approved is the first step. Building credit requires using the card the right way. Make a small purchase each month — $20 to $50 — and pay the full balance before the due date. This shows the credit bureaus that you can borrow and repay reliably.
Avoid carrying a balance. If you charge $100 and pay $50, you'll owe interest on the remaining $50, and the card issuer will report that you're using part of your credit limit. Credit scores reward people who use less than 30% of their available credit. If your limit is $500 and you charge $200, you're at 40% utilization, which hurts your score.
Keep the card open even after your credit improves. Closing old accounts shortens your credit history and can lower your score. Once you've built credit and moved to a better card, keep the old one in a drawer with a small charge on it every few months to keep the account active.
Frequently Asked Questions
Can I get a credit card with no credit history at all?
Yes. A secured card from your bank or credit union is your best option. You'll need to show you have the cash for the deposit and a valid ID. Some card issuers also offer unsecured cards to people with no credit history, though they charge higher fees and interest rates.
What's the difference between a credit card and a debit card?
A debit card draws money directly from your bank account and doesn't build credit history. A credit card is a loan you repay monthly, and the issuer reports your payment history to credit bureaus. Only credit cards help you build a credit score.
How long does it take to build credit with a new card?
Credit bureaus need at least six months of payment history to calculate a score. You'll see improvement after three to four months of on-time payments, but the biggest gains come after six to twelve months. Building credit is a slow process by design.
What if I'm denied for a secured card?
Denial for a secured card is rare because the deposit removes most of the lender's risk. If you're denied, the issuer must tell you why. Common reasons include being on a fraud list or having an unpaid debt with that specific bank. Try a different issuer or wait a few months before reapplying.
Do I have to use the card to keep it open?
Most card issuers will close accounts that sit unused for six to twelve months. Make a small charge every few months and pay it off to keep the account active. This also keeps your credit history longer, which helps your score.