Which Credit Cards Have the Loosest Approval Standards
Secured cards and store cards approve people with no credit history or poor credit
The easiest cards to get approved for are secured credit cards and store cards. Both exist specifically to help people build credit when traditional cards would reject them. A secured card requires you to put down a cash deposit — usually $200 to $2,500 — that becomes your credit limit. A store card is issued by a retailer like Target or Kohl's and has looser approval standards than bank cards, though it only works at that store.
Secured cards are the most straightforward path if you have no credit history, a thin credit file, or a low credit score. You control the deposit amount, so you can start small. The card issuer reports your payments to the three credit bureaus, which means on-time payments actually build your credit score over time. After 12 to 24 months of responsible use, many issuers will convert your account to a regular unsecured card and return your deposit.
Store cards approve faster and with lower credit score thresholds than bank-issued cards, but they come with trade-offs. The interest rates are typically higher, and the card only works at that specific retailer. However, they do report to credit bureaus, so they still help you build credit. If you shop at a particular store regularly, a store card can be a practical first step.
Key Takeaways
- Secured cards require a cash deposit but approve people with no credit or poor credit, and the deposit becomes your spending limit.
- Store cards from retailers like Target, Kohl's, and Amazon approve with lower credit score requirements than traditional bank cards.
- Both secured and store cards report to credit bureaus, so on-time payments build your credit score for future card applications.
- Secured cards typically convert to unsecured cards after 12 to 24 months of on-time payments, and the issuer returns your deposit.
- Store cards carry higher interest rates and only work at one retailer, but they are easier to get approved for if you have limited credit history.
How secured cards work and why they approve almost everyone
A secured card works like this: you deposit money into a savings account held by the card issuer, and that amount becomes your credit limit. If you deposit $500, your limit is $500. You then use the card like any other credit card — make purchases, receive a bill, and pay it back. The issuer reports your payment history to Equifax, Experian, and TransUnion, the three major credit bureaus.
Issuers approve secured cards for nearly everyone because they have already collected the money you might owe. If you stop paying, they simply take the money from your deposit. This removes the risk that makes traditional cards reject people with no credit or bad credit. You are not borrowing against your creditworthiness; you are borrowing against cash you have already handed over.
The deposit stays in the account as long as you hold the card. You cannot spend it — it sits there as collateral. Some issuers charge a small annual fee on top of the deposit requirement, typically $25 to $50. Interest rates on secured cards are higher than on unsecured cards, often in the 18% to 24% range, but if you pay your full balance each month you will not pay interest at all.
Store cards approve faster but with higher costs
Retail store cards — issued by Target, Kohl's, Amazon, Best Buy, and others — have approval standards that sit between secured cards and traditional bank cards. They approve people with lower credit scores or thinner credit histories than a bank would, but they do require some credit history or a recent positive payment record. The approval decision often comes within minutes if you apply in-store, or within a few days if you apply online.
The trade-off is cost and flexibility. Store card interest rates run 18% to 27%, higher than most bank cards. The card only works at that retailer and its affiliated stores — a Target card works at Target and Target.com, but nowhere else. Annual fees are usually waived, but the limited usefulness means you are building credit on a card you can only use in one place.
Store cards make sense if you shop at that retailer regularly and plan to pay your balance in full each month. If you carry a balance, the high interest rate will cost you significantly. Some retailers offer promotional 0% interest periods on store card purchases, which can reduce the cost if you pay off the balance before the promotion ends.
Credit score requirements vary by card type
Secured cards have no stated credit score minimum because they do not check your credit score at all — only your ability to make the deposit. You can have a 300 credit score, no credit history, or recent bankruptcy and still get approved for a secured card. The only requirements are that you are at least 18 years old, have a valid Social Security number, and can deposit the required amount.
Store cards typically want a credit score of 600 or higher, though some approve people in the 550 to 600 range. A few store cards will approve people with no credit history if they have a recent positive payment record — for example, on-time rent or utility payments. Each retailer sets its own standards, so approval odds vary by store.
Traditional bank credit cards usually want a score of 670 or higher for approval. Cards marketed to people rebuilding credit may approve at 600 to 650, but these are still harder to get than secured or store cards. If your score is below 600, a secured card is your most reliable option.
What happens after you build credit with a secured card
The point of a secured card is to build credit history so you can eventually move to a regular unsecured card. After 12 to 24 months of on-time payments, most issuers will automatically review your account and convert it to an unsecured card. When this happens, your deposit is returned to you — you get your money back and keep the card with a higher credit limit.
Some issuers let you request conversion earlier if your credit score has improved significantly. Others require you to wait the full 24 months. A few will not convert at all; they keep the card as a secured product indefinitely. Before you open a secured card, check the issuer's conversion policy so you know what to expect.
The timeline matters because during those 12 to 24 months, you are building credit history that makes you approvable for other cards. Once you have six months of on-time payments on a secured card, you may be able to get approved for a store card or a beginner-level bank card. After 12 months, your options expand further. By the time your secured card converts, you will likely have multiple cards and a credit score high enough to get approved for cards with better rewards or lower interest rates.
Comparing secured cards, store cards, and traditional cards
| Card Type | Approval Odds | Credit Score Needed | Deposit Required | Interest Rate Range | Annual Fee |
|---|---|---|---|---|---|
| Secured Card | Very High | None | $200–$2,500 | 18%–24% | $0–$50 |
| Store Card | High | 550–650 | None | 18%–27% | Usually $0 |
| Traditional Bank Card | Moderate | 670+ | None | 16%–25% | $0–$95 |
Steps to get approved for a secured card
Start by choosing an issuer. Major banks like Capital One, Discover, and U.S. Bank all offer secured cards. Credit unions often offer them too, and sometimes with lower fees. Compare the deposit requirements, annual fees, interest rates, and conversion policies before you apply.
Gather what you will need: a valid government-issued ID, your Social Security number, proof of income or employment (usually a recent pay stub), and proof of address (a utility bill or bank statement). Some issuers ask for all of these; others ask for less. Have your deposit amount ready — you will fund the account when you open the card, either online or at a branch.
Apply online or in person. The approval decision usually comes within minutes to a few days. Once approved, you will fund your deposit account and receive your card in the mail within 7 to 10 business days. Start using it for small purchases you would make anyway, and pay the full balance each month. This builds credit history faster than carrying a balance and paying interest.
Frequently Asked Questions
Can I get a credit card with no credit history?
Yes. A secured card will approve you with no credit history because it does not rely on your credit score — only your ability to make the deposit. Some store cards also approve people with no credit history if you have a recent positive payment record on rent or utilities. Traditional bank cards are much harder to get without any credit history.
What is the difference between a secured card and a prepaid card?
A secured card is a credit card backed by your deposit; it reports to credit bureaus and builds your credit score. A prepaid card is not a credit card at all — you load money onto it and spend that money, like a gift card. Prepaid cards do not build credit because they do not report to credit bureaus. If you want to build credit, use a secured card, not a prepaid card.
Will applying for multiple cards hurt my credit score?
Each application triggers a hard inquiry, which temporarily lowers your score by a few points. Multiple applications in a short time can add up. If you are applying for your first card, apply for one secured card and wait to see if you get approved before applying elsewhere. Once you have one card with a few months of payment history, you will have more options and will not need to apply for multiple cards at once.
Do I have to use a store card at that specific store?
Yes, most store cards only work at that retailer and its website. Some retailers have co-branded cards that work elsewhere — for example, an Amazon card that also works as a Visa anywhere. Check the card details before you apply to see where you can use it.
How long does it take to convert a secured card to an unsecured card?
Most issuers convert after 12 to 24 months of on-time payments. Some may convert sooner if your credit score improves significantly. A few issuers do not convert at all. Before you open a secured card, ask the issuer about their conversion timeline so you know what to expect.