Cards designed for people building credit are your best bet
If you have no credit history, a recent negative mark, or a low credit score, you are not locked out of credit cards — but you will not may have access to for the cards with the best rewards or lowest interest rates. Instead, you will find cards specifically designed for people in your situation: secured cards, student cards, and unsecured cards for fair credit. These cards exist because card companies know that people starting out need a way to build a payment history.
The trade-off is real. These cards charge higher interest rates, have lower credit limits, and often come with annual fees. But they work: if you use one responsibly and pay your bill on time each month, you build a credit record that qualifies you for better cards within one to two years.
Key Takeaways
- Secured cards require a cash deposit that becomes your credit limit, and they are the easiest type to get approved for if you have no credit history or a poor one.
- Student cards are designed for people in college or graduate school and typically have lower approval standards than regular unsecured cards.
- Unsecured cards for fair credit do not require a deposit but charge higher interest rates and annual fees than standard cards.
- All three types report to the credit bureaus, so on-time payments build your credit score even though the card itself is harder to get.
- The card you get approved for depends on your credit score, income, and whether you have a bank account with the issuer.
Secured cards: the easiest approval route
A secured credit card requires you to put down a cash deposit, usually between $200 and $2,500. That deposit becomes your credit limit. You then use the card like any other card — swipe it, pay the bill each month — and the deposit sits in a bank account untouched. You do not lose the money; it just collateralizes the card.
Secured cards are the easiest to get approved for because the card company's risk is minimal. They hold your money. Most banks will approve you if you have a valid ID, a Social Security number, and the cash to deposit. Your credit score barely matters, and some issuers do not even check it.
The catch is the fee structure. Secured cards often charge annual fees ($25 to $95 is common), and the interest rate is higher than unsecured cards — often 18% to 24%. But if you pay your full balance each month, you never pay interest, and the annual fee is the only cost. After 12 to 24 months of on-time payments, many issuers convert your secured card to an unsecured card and return your deposit.
Student cards for people in school
If you are a full-time student at a four-year college or university, you have a separate category of cards designed for you. Student cards have lower approval standards than regular unsecured cards because card companies view students as a long-term customer base — they are betting you will stay with them after graduation.
Student cards typically do not require a deposit, and many have no annual fee. The interest rate is still higher than premium cards (usually 18% to 22%), but lower than secured cards. Some student cards offer small rewards — 1% cash back on all purchases, for example — which secured cards rarely do.
To may have access to, you will need to prove you are a full-time student. Most issuers ask for your school name and enrollment status during the application, and some require you to upload a student ID or class schedule. You will also need a Social Security number and a valid ID. A credit score is not usually required, though the issuer may check your credit report.
Unsecured cards for fair credit
If you have a credit score in the 550 to 669 range — what credit bureaus call "fair" credit — you can may have access to for unsecured cards that do not require a deposit. These cards are riskier for the issuer than secured cards, so they charge higher fees and interest rates to offset that risk.
Expect annual fees of $39 to $99 and interest rates of 18% to 29%. Some cards in this category offer a small sign-up bonus (like $50 or $100 in cash back after you spend a certain amount), which can offset the first year's annual fee. Others offer no bonus but lower annual fees.
Approval depends on your credit score, income, and whether you have existing accounts with the issuer. If you already have a checking account at a bank, that bank's credit card division may approve you more easily than a card company that knows nothing about you. Some issuers also consider your employment history and whether you have been at your current job for at least a few months.
What happens after you get approved
Once you receive your card, your credit limit will be low — often $300 to $500 for secured cards and $200 to $750 for unsecured cards. This is intentional. A low limit reduces the issuer's risk and forces you to use the card responsibly.
The card issuer reports your account to the three credit bureaus — Equifax, Experian, and TransUnion — every month. They report whether you paid on time, how much of your limit you used, and your account status. This information builds your credit score. After 12 to 24 months of on-time payments, your score will improve, and you will may have access to for cards with better terms.
Do not close the card once you upgrade to a better one. Closing it removes a positive account from your credit history and can lower your score. Instead, keep it open with a small balance or occasional purchase to keep it active.
How to compare cards in this category
When you are looking at secured or fair-credit cards, focus on three things: annual fee, interest rate, and whether the issuer reports to all three credit bureaus.
Annual fee matters because you will pay it whether you use the card or not. A $95 annual fee on a card you use once a month is expensive. A $25 annual fee on a card you use regularly is a small cost of building credit. Interest rate matters only if you carry a balance — if you pay your full bill each month, the rate is irrelevant.
Reporting to all three bureaus is crucial. Some smaller card issuers report to only one or two bureaus, which means your on-time payments do not build your credit as quickly. Before you apply, check the issuer's website or call customer service and ask: "Does this card report to Equifax, Experian, and TransUnion?" If the answer is anything other than yes to all three, keep looking.
Red flags to avoid
Some companies prey on people with poor credit by charging extreme fees or making false promises. Watch out for cards that charge a fee just to apply, cards that require you to pay money upfront before you receive the card, or cards that promise to "fix" your credit or "erase" negative marks. None of those are real.
Legitimate card issuers do not charge application fees. They do not ask for money before sending you a card. And no card can erase accurate negative information from your credit report — only time and on-time payments improve your score.
If a card offer sounds too good to be true, it is. Stick with cards from established banks and credit unions, or cards you find through the Consumer Financial Protection Bureau's website or major financial publications.
Frequently Asked Questions
What credit score do I need to get a credit card?
Secured cards typically do not require a minimum credit score — some issuers do not even check. Student cards also have no score requirement if you can prove enrollment. Unsecured cards for fair credit usually require a score of 550 to 669. If your score is below 550, a secured card is your best option.
Can I get a credit card if I have no credit history?
Yes. Secured cards are designed for people with no history. You deposit cash, use the card, and build a record of on-time payments. After 12 to 24 months, you have enough history to may have access to for unsecured cards. Student cards are also an option if you are enrolled in school.
How long does it take to build credit with these cards?
Credit bureaus update your report monthly, so you will see small score improvements within three to six months of on-time payments. Meaningful improvement — enough to may have access to for better cards — usually takes 12 to 24 months. The longer your payment history, the bigger the impact on your score.
Will getting a credit card hurt my credit score?
When you apply for a card, the issuer checks your credit, which causes a small temporary dip in your score — usually 5 to 10 points. This dip fades within a few months. Once the card is open and you make on-time payments, your score will rise. The short-term dip is worth the long-term gain.
What should I do if I get denied for a card?
If you are denied for an unsecured card, apply for a secured card instead. If you are denied for a secured card, the issue is usually that you do not have the cash deposit or you have a very recent negative mark like a recent bankruptcy. In that case, wait a few months and try again, or contact the issuer to ask what would make you approvable.