A credit score of 500 or less gives you plenty of room for growth when building your credit, and it won’t exclude you from qualifying for a good credit card. Plenty of credit cards for a 500 credit score or lower offer credit-building tools to help you achieve a higher score; others even offer rewards. The cards featured here could get you on the right track for a better score and better cards.
Comparing the best cards for a 500 credit score
| Card name | Annual fee | Security deposit | Bankrate review score |
|---|
| Capital One Platinum Secured Credit Card | $0 | Your minimum security deposit amount will be either $49, $99 or $200 | 4.1 / 5 |
| Petal® 1 “No Annual Fee” Visa® Credit Card | $0 | None | 4.4 / 5 |
| Discover it® Secured Credit Card | $0 | $200 | 4.5 / 5 |
| Petal® 2 “Cash Back, No Fees” Visa® Credit Card | $0 | None | 5 / 5 |
| Mission Lane Visa® Credit Card | $0 to $59 | None | 3.4 / 5 |
| Indigo® Mastercard® | $0 to $99 | None | 2.2 / 5 |
Top cards for a 500 credit score (or less)
Best for a low security deposit
Capital One Platinum Secured Credit Card
Rating: 4.1 stars out of 5
Best unsecured option
Petal 1 “No Annual Fee” Visa
Rating: 4.4 stars out of 5
Best for earning cash back
Discover it® Secured Credit Card
Best for flat-rate cash back
Petal 2 “Cash Back, No Fees” Visa
Best for rebuilding credit
Mission Lane Visa
Rating: 3.4 stars out of 5
Best for a low APR
Indigo Mastercard
Rating: 2.2 stars out of 5
How to choose a credit card for bad credit
If you want to pick the right card for you, you should consider the following factors. Prioritizing these will help you decide on a card that meets your needs without straining your credit-building efforts.
Know your credit score
You can request a free credit report every year.
The credit cards you’re eligible for vary based on your credit score and other credit-related factors like age of credit history. Knowing your credit score can help you navigate the cards you qualify for and help you avoid behaviors that could damage your score, like applying for too many credit cards at once. To find your score and view your report, visit Annualcreditreport.com.
Many issuers provide free access to your credit score, but you can access your credit report through the three credit bureaus for free once a year if you don’t have a credit card.
Familiarize yourself with fees
Avoid cards that charge an annual fee and a security deposit.
Issuers often require security deposits upfront to open secured credit cards for bad credit. This collateral is a refundable amount used to fund your credit limit; other cards may charge annual fees, which are non-refundable.
Credit cards for bad credit also tend to have high ongoing APRs and rarely have intro APR offers. The best credit cards for bad credit have either a reasonable annual fee or a reasonable security deposit, a lower ongoing APR and plenty of credit-building incentives.
Focus on building credit
Develop positive credit-building habits to keep your score on the rise.
An advantage of credit cards for bad to fair credit scores is the potential to help you build an even better score over time. You should always look for a card that reports to the major credit bureaus because this will ensure there is a record of your progress. Also, look for cards with incentives for positive credit habits, like credit limit increases or cards that offer the chance to graduate to a more lucrative or unsecured credit card.
From our experts: 6 tips for applying for a credit card with bad credit
How to improve bad credit
The more you can improve your credit score, the better your chances of accessing higher-quality cards over time. As a lower-risk borrower, you won’t have to spend as much on the collateral requirements for cards geared toward people with 500 credit scores or lower. Consider the following tips to build your credit consistently over time.
- Always pay on time. Your payment history makes up 35 percent of your credit score, and missing a payment can have drastic consequences. Consider setting up automatic payments or making a note in your calendar to ensure you always pay your bill on time.
- Keep credit utilization ratio low. Use only a small amount of your available credit by setting up a few recurring bills on your card or only using it for budgeted outings. Your credit utilization ratio makes up the second-largest chunk of your credit score after payment history.
- Watch your credit report. Understand how to read your credit report and keep a keen eye out for errors like an unfamiliar employer or an incorrect middle initial. Small errors like these can lower your credit score or even hint at identity theft, so it’s best to be aware of your financial standing.
- Keep your starter credit card. The longer your credit history, the better. Your starter card will often be your first and oldest credit account, which can boost your score after you outgrow the card. Consider keeping the account open (as long as it doesn’t charge maintenance fees), even if you don’t use it.
The bottom line
Don’t think a low credit score leaves you out for the count on accessing decent credit cards. You may not get the most lucrative rewards rates and lowest fees, but you can build your way to better cards with responsible habits. Be sure to pick a card that reports your progress to the major credit bureaus, never miss a payment and keep your credit utilization low. When done consistently over time, these steps can lead you in the right direction.
FAQs
The best unsecured credit card for a 500 credit score (and one of the easiest to get) is the Credit One Visa card. This card offers a $300 starting credit limit, the potential for automatic credit line increases, and rewards on select purchases.
What credit card approves a 500 score? ›
The best unsecured credit card for a 500 credit score (and one of the easiest to get) is the Credit One Visa card. This card offers a $300 starting credit limit, the potential for automatic credit line increases, and rewards on select purchases.
What credit card will approve you no matter what? ›
The OpenSky® Plus Secured Visa® Credit Card is the easiest credit card to get because you can qualify even with bad credit as there's no credit check for new applicants. The OpenSky Plus Card also has a $0 annual fee and reports to the major credit bureaus, making it easy to save money and build credit.
What is the easiest card to get with bad credit? ›
Easiest credit cards to get approved for
- Best for no credit: Petal® 2 “Cash Back, No Fees” Visa® Credit Card.
- Best for cash back: U.S. Bank Cash+® Visa® Secured Card.
- Best for small businesses: Bank of America Business Advantage Unlimited Cash Rewards Secured credit card.
- Best for Chase customers: Chase Freedom Rise℠
Loan choices are severely limited with a 500 credit score. And some, like payday or title loans are not recommended. You can improve your chances of loan approval by adding a co-borrower or co-signer. Expect to pay higher loan fees and interest rates when you borrow with a 500 credit score.
Which bank approves a credit card easily? ›
Comparing the easiest cards to get
| Card Name | Annual fee | FICO score required |
|---|
| Bank of America® Unlimited Cash Rewards Secured credit card | $0 | No credit history |
| Capital One Platinum Secured Credit Card | $0 | No credit history |
| Indigo® Mastercard® | $0-$99 depending on creditworthiness | 300 to 670 |
| Capital One Platinum Credit Card | $0 | 580 to 740 |
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Some of the easiest unsecured cards to get approved for are the Indigo® Mastercard®, Mission Lane Visa® Credit Card and Milestone® Mastercard®. While these cards are geared toward people with bad credit and have easy approval odds, they tend to charge high fees and interest, which can make building credit costly.
What store card is easiest to get approved for? ›
Here's a Summary of the Best Instant Approval Store Credit Cards
- Prime Visa.
- Costco Anywhere Visa® Card by Citi *
- Gap Good Rewards Mastercard® *
- Key Rewards Visa *
- Target Circle™ Credit Card *
- MyLowe's Rewards Credit Card *
- Kohl's Card *
Leading credit card issuers in India like HDFC Bank, SBI Card, Axis Bank, IndusInd Bank and Standard Chartered Bank offer a number of cards, each catering to unique individual needs like fuel, online shopping, dining, movies, groceries, or a mix of all. Before choosing a card, you must compare the available options.
What is an instant approval credit card? ›
Select issuers, including American Express, provide instant credit card numbers to eligible card members immediately upon approval. This allows you to shop online and take immediate advantage of card benefits, instead of waiting for a physical card to arrive in the mail.
You need a credit score of 550 to 750 to be approved for most unsecured credit cards. The higher your credit score is, the better your chances of getting approved for one of the best credit cards with no security deposit will be.
What is the easiest bank to get approved for? ›
- Key takeaways.
- What are the easiest bank accounts to open online?
- Discover: Best for getting cash back on purchases.
- SoFi Checking and Savings: Best for high APY.
- U.S. Bank: Best mobile app.
- Truist: Best for no overdraft fees.
- Bank of America: Best for flexible banking.
- Chime®: Best for bad credit.
The Discover it® Secured Credit Card is our top pick for easiest credit card to get because it's geared toward those with limited / poor credit. It offers great rewards and charges a $0 annual fee.
What kind of credit card can I get with a 500 credit score? ›
If you have a 500 credit score or lower, you'll likely have trouble qualifying for most credit cards. Try secured cards, which require a cash security deposit, or credit cards geared toward those rebuilding credit.
Who will give me a loan with a 500 credit score? ›
Reputable lenders who offer emergency loans for 500 credit score borrowers include Avant, LendingPoint, and OneMain Financial. Pro Tip: Some personal loans are tailored for specific needs, such as medical bills, funeral costs, or debt consolidation.
Why did my credit score go from 524 to 0? ›
Credit scores can drop due to a variety of reasons, including late or missed payments, changes to your credit utilization rate, a change in your credit mix, closing older accounts (which may shorten your length of credit history overall), or applying for new credit accounts.
Can I get credit with a score of 500? ›
You could get a credit card or loan with a 500 credit score. However, because it's a low credit score, it may be more difficult to be accepted for credit. Because of your lower credit score, you should also expect higher interest rates, a smaller credit limit and loan amount.
What's the lowest credit score to get a credit card? ›
If your credit score lands around 500 or lower, your chances of getting the credit card of your choice is significantly reduced. You may want to consider improving your score so you can have better chances of getting the card of your choice.
Can you get approved for a credit card with a 540 credit score? ›
With an 540 credit score, you're unlikely to get approved for a traditional credit card. Credit cards are unsecured forms of debt, so banks tend to be a bit more cautious compared to loans backed by specific assets, like mortgages and auto loans. Having said that, there are a couple of options.
What credit card can I get with a 555 credit score? ›
The best type of credit card for a 555 credit score is a secured credit card. Secured cards give people with bad credit high approval odds and have low fees because cardholders are required to place a refundable security deposit. The amount you put down usually becomes your credit limit.
