What works when your score is below 670

If your credit score is below 670, most standard credit cards will reject you. The cards that will accept you fall into two categories: secured cards (you put down cash as collateral) and unsecured cards designed for rebuilding (no collateral, but higher fees and lower limits). Both exist specifically because lenders know people rebuild credit—they are not charity, but they are real options.

The choice between them depends on whether you have cash to lock away and how much you can afford to pay in fees. A secured card is usually cheaper over time if you have $200 to $2,500 available. An unsecured rebuilding card costs more but keeps your cash free. Neither is permanent; both are designed as a stepping stone to a regular card once your score climbs.

Key Takeaways

  • Secured cards require a cash deposit that becomes your credit limit, and they typically charge $0 to $95 annual fees, but they report to all three credit bureaus and usually graduate to unsecured cards within 18 months.
  • Unsecured rebuilding cards charge $39 to $99 annual fees with no deposit required, but they come with lower credit limits and higher interest rates than secured cards.
  • The card itself matters less than whether it reports to Equifax, Experian, and TransUnion—if it does not report to all three, it will not rebuild your score.
  • Your first card should have no foreign transaction fees, no penalty APR, and a clear path to graduation so you know what happens after you rebuild.

Secured cards: how the deposit works

A secured card requires you to open a savings account with the card issuer and deposit money—usually $200 to $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 untouched in the savings account. After 18 to 24 months of on-time payments, the issuer converts it to a regular unsecured card, returns your deposit, and you keep the account open with a higher limit.

The deposit is not a fee; you get it back. But the card will charge an annual fee ($0 to $95 depending on the issuer), and the interest rate is usually 18% to 24% APR. If you carry a balance, you pay interest on top of the annual fee. The real cost is the annual fee plus interest if you do not pay in full each month.

Secured cards work because they are low-risk for the lender—if you do not pay, they keep the deposit. That low risk is why they report to all three credit bureaus and why they graduate. The Capital One Secured Mastercard, the Discover Secured Card, and the OpenSky Secured Visa are widely available, but dozens of banks offer them. Check whether the issuer reports to all three bureaus before you apply; some do not.

Unsecured rebuilding cards: no deposit, higher fees

An unsecured rebuilding card does not require a deposit. You apply, the issuer checks your credit, and if they approve you, you get a card and a credit limit—usually $300 to $750. You use it and pay the bill. No deposit to worry about, and your cash stays in your pocket.

The tradeoff is cost. Annual fees run $39 to $99, and APR is usually 24% to 36%. If you carry a balance, the interest adds up fast. The card also typically has a lower limit than a secured card with the same deposit amount, so you have less room to build a payment history.

Unsecured rebuilding cards include the Chime Credit Builder Visa, the Petal 2 Visa, and the Mission Lane Visa. Like secured cards, they only help your score if they report to all three bureaus. Some report to only one or two, which means your payments do not reach the credit agencies that matter most. Ask the issuer directly before you apply.

Annual fees, interest rates, and what to avoid

Annual fees on rebuilding cards range from $0 to $99. A $0 annual fee is rare for unsecured rebuilding cards but common for secured cards from large banks. If you are choosing between two similar cards, the one with no annual fee saves you money, but do not let a $39 fee stop you from choosing the card that reports to all three bureaus—the credit-building benefit is worth more than $39 a year.

Interest rates (APR) on these cards are high: 18% to 36% depending on the card and your credit. The APR matters only if you carry a balance. If you charge $500 and pay it off in full the next month, you pay $0 in interest. If you charge $500 and pay $100 a month, you pay interest on the remaining $400. With a 24% APR, that costs you roughly $8 per month in interest alone. The math gets worse with higher APR.

Avoid cards that charge penalty APR (a higher rate if you miss a payment), cards that do not report to all three bureaus, and cards with foreign transaction fees if you travel. Also avoid cards that charge a fee just to check your credit limit or that charge monthly fees on top of annual fees. These are warning signs of a card designed to extract fees rather than help you rebuild.

How to compare secured and unsecured cards for your situation

Start by asking yourself: do I have $200 to $2,500 I can lock away for 18 to 24 months? If yes, a secured card is usually the better choice. The annual fee is lower, the APR is lower, and the credit limit is higher. You get more credit-building power for less money.

If you do not have cash to deposit, or if you need your cash available, choose an unsecured rebuilding card. You will pay higher fees and interest, but you keep your money. The credit-building effect is the same—both report to all three bureaus and both help your score climb if you pay on time.

Once you have narrowed it down, check three things: (1) Does it report to Equifax, Experian, and TransUnion? (2) What is the annual fee? (3) Is there a clear path to graduation or conversion to a regular card? If the issuer cannot answer these questions, move to the next card.

What happens after you rebuild

After 18 to 24 months of on-time payments, your score will usually climb 50 to 100 points (the exact amount depends on your starting score and other factors on your credit report). At that point, you become may be able to access for regular credit cards with lower fees and interest rates. Many issuers will automatically convert your secured card to an unsecured card and return your deposit. Some require you to ask.

Once you graduate, keep the old card open even if you do not use it. Closing it lowers your available credit and can dip your score. Instead, use it occasionally (one small charge every few months, paid in full) to keep the account active. Your new regular card becomes your primary card, and the old one becomes a backup that helps your credit profile.

If you started with an unsecured rebuilding card, the path is less clear. Some issuers do not convert these cards; they simply keep them as rebuilding cards. Before you apply, ask the issuer what happens after you rebuild. If they cannot tell you, that is a sign the card is not designed as a stepping stone.

Red flags and cards to skip

Avoid any card that charges a fee to check your balance, a monthly maintenance fee, or a fee to make a payment. These are signs the card is designed to profit from fees rather than help you rebuild. Also skip cards that charge a "setup fee" or "processing fee" upfront—legitimate rebuilding cards do not do this.

Be cautious of cards that do not clearly state their APR or annual fee before you apply. If the issuer hides this information, that is a warning. Also avoid cards that report to only one or two credit bureaus; you need all three to rebuild effectively.

Finally, do not apply for multiple cards at once. Each application triggers a hard inquiry, which lowers your score by a few points. Space applications out by at least a few months. One card is enough to rebuild; more cards just create more accounts to manage and more fees to pay.

Frequently Asked Questions

Will a secured card hurt my score when I apply?

Yes, but only slightly and temporarily. The application triggers a hard inquiry, which lowers your score by a few points for a few months. The benefit of the card (on-time payments reported to all three bureaus) outweighs this small dip. After six months of on-time payments, the inquiry's impact fades and your score starts climbing.

Can I use a secured card right away or do I have to wait?

You can use it immediately after approval. The issuer will give you a card number (sometimes digital, sometimes physical) within days. Start using it for small purchases you would make anyway, then pay the full balance each month. This builds your payment history without forcing you to spend money you would not otherwise spend.

What if I miss a payment on a rebuilding card?

A missed payment will be reported to all three credit bureaus and will lower your score significantly. It also stays on your report for seven years. If you miss a payment, contact the issuer immediately and pay as soon as you can. One missed payment is recoverable; multiple misses make rebuilding much slower.

Do I need to carry a balance to build credit?

No. Paying in full each month is better for your credit and your wallet. Credit bureaus care about whether you pay on time, not whether you carry a balance. Carrying a balance costs you interest and does not help your score any faster than paying in full.

How long until I can get a regular credit card?

Most people see their score climb enough to may have access to for a regular card within 18 to 24 months of on-time payments on a rebuilding card. Some issuers will convert your card automatically; others require you to ask. Check your card's terms to know what to expect.