Credit Cards for Subprime Credit Users

What Is Subprime Credit?

Subprime typically refers to credit scores below 670, particularly those below 580. This includes people rebuilding after bankruptcies, foreclosures, or extended periods of late payments.

Card Options for Subprime Credit

Secured Credit Cards

The most accessible option, requiring a security deposit but offering approval even with very low scores.

Credit Builder Cards

Specifically designed for credit rebuilding with educational tools and clear upgrade paths.

Subprime Unsecured Cards

Some unsecured cards target subprime borrowers but typically have high fees and APRs.

What to Expect

Higher Fees

Annual fees ranging from $25-$99 are common. Some cards also have monthly maintenance fees.

High Interest Rates

APRs typically range from 24% to 29.99%. This doesn't matter if you pay in full monthly.

Lower Credit Limits

Initial limits often start at $200-$500.

Limited Rewards

Most subprime cards don't offer cash back or rewards programs.

Red Flags to Avoid

• Application fees (legitimate cards don't charge to apply)
• High processing fees ($50-$100 upfront)
• Monthly fees over $10
• Cards that don't report to all three bureaus
• Extremely high annual fees ($100+)
• Pre-qualification that requires payment

Building Strategy for Subprime Users

Start with Secured Cards

They offer the best combination of accessibility and credit-building power.

Keep Utilization Below 10%

With already-damaged credit, low utilization is critical for rebuilding.

Never Miss a Payment

Set up autopay for at least the minimum payment.

Be Patient

Credit rebuilding takes 6-24 months of consistent positive behavior.

Timeline for Improvement

• 3-6 months: Score starts improving from on-time payments
• 12 months: Negative items age, new positive history accumulates
• 18 months: May qualify for better card offers
• 24+ months: Transition to prime or near-prime credit

Alternative Building Methods

• Credit builder loans from credit unions
• Becoming an authorized user on someone else's good account
• Rent reporting services
• Secured loans from local banks