Best Credit Cards for a 500 Credit Score or Less
Find the best credit cards for 500 credit scores with low fees, rewards, and credit-building features.
Having a credit score of 500 or less doesn’t mean you’re shut out of the credit card market. In fact, a score in this range provides ample opportunity for growth and credit-building when you choose the right card. Many financial institutions offer credit cards specifically designed for individuals with poor credit scores, and several of these cards include valuable credit-building tools and even rewards programs to help you get back on track toward financial health.
Understanding your options is the first step toward rebuilding your credit. Whether you’re starting from scratch or recovering from past financial challenges, selecting a card that aligns with your needs without straining your budget is crucial. This guide explores the best credit cards available for those with 500 credit scores or lower, helping you make an informed decision about which card might work best for your situation.
Top Credit Cards for 500 Credit Scores
Several credit cards are specifically marketed for individuals with credit scores of 500 or below. These cards vary in their approach to helping you rebuild credit, offering different combinations of security deposits, annual fees, rewards, and credit-building features.
Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Credit Card is an excellent choice for those looking to minimize upfront costs. This card requires no annual fee and offers flexible security deposit options starting as low as $49, with alternatives at $99 or $200. The security deposit directly becomes your credit limit, making it an accessible entry point for individuals with no credit history or very poor credit scores. Capital One reports your account activity to all three major credit bureaus, ensuring your positive payment behavior contributes to building your credit profile over time.
Discover it® Secured Credit Card
For those interested in earning rewards while rebuilding credit, the Discover it® Secured Credit Card stands out as a particularly valuable option. This card carries no annual fee and requires a $200 security deposit that becomes your credit limit. What makes this card particularly attractive is its rewards structure—you can earn cash back on your purchases, a rare feature among secured credit cards. Discover matches all the cash back you earn during your first year, effectively doubling your rewards potential and providing real value as you rebuild your credit.
The Secured Self Visa® Credit Card
The Self Visa® Credit Card offers a unique approach to credit building by emphasizing credit mix diversity. This card requires a $100 security deposit and has no annual fee for the first year, though a $25 annual fee applies thereafter. The card’s primary advantage lies in how it helps establish credit mix, which accounts for approximately 10% of your FICO score. By using this card alongside other credit accounts, you can demonstrate your ability to manage different types of credit responsibly.
Petal 2 Visa® Credit Card
If avoiding fees is your primary concern, the Petal 2 Visa® Credit Card deserves consideration. This unsecured card requires no security deposit and carries no annual fee, making it an unusual option in the bad credit market. Petal uses alternative underwriting criteria, evaluating factors beyond your credit score to determine eligibility. For those who qualify, this card eliminates the upfront costs associated with most secured cards while still providing a path to credit improvement.
Mission Lane Silver Line Visa® Credit Card
The Mission Lane Silver Line Visa® Card offers no security deposit requirement and no annual fees, though it typically targets individuals with credit scores in the 580 to 740 range. This card is designed to be accessible to those just above the very poor credit range while still being available to lower-score applicants who demonstrate other positive financial indicators.
How to Choose a Credit Card for Bad Credit
Credit cards marketed toward individuals with bad credit often come with higher fees and fewer perks than traditional cards, but significant variation exists among them. To select the right card for your situation, you should evaluate several key factors that will help you minimize costs while maximizing your credit-building potential.
Monitor Your Free Credit Report
Before applying for any credit card, understanding your current credit situation is essential. Your eligibility for specific cards depends on your exact credit score and other credit-related factors such as the age of your credit history and any negative marks on your record. Accessing your free credit score and credit reports through the three major credit bureaus—Equifax, Experian, and TransUnion—provides crucial information about which cards you’re likely to qualify for.
Knowing your score also helps you avoid behaviors that could further damage your credit, such as applying for multiple cards in a short period. Each application generates a hard inquiry that temporarily lowers your score, so strategic application is important. Additionally, some card issuers provide free access to your credit score as a cardholder benefit, which can help you monitor your progress and understand which actions are improving your score most effectively.
Evaluate Fees Carefully
Fees represent one of the most significant considerations when selecting a bad credit card. Secured credit cards typically require an upfront security deposit—a refundable amount held as collateral that establishes your credit limit. While this deposit is returned once you upgrade to an unsecured card or close the account responsibly, it does represent money you must have available immediately.
Annual fees, by contrast, are non-refundable charges you’ll pay yearly to keep the card open. Many bad credit cards charge annual fees ranging from $25 to $99 or higher. Beyond these primary fees, watch out for additional charges that can quickly accumulate: ATM fees for cash withdrawals, fees for maintaining a low balance, monthly maintenance fees, or fees for using the card at all. Cards that charge numerous small fees often end up costing more than premium cards designed for good-credit customers, defeating the purpose of using them to rebuild credit affordably.
The best bad credit cards strike a balance between either a reasonable security deposit or annual fee and a lower ongoing interest rate. Compare the total first-year cost of different options to determine which provides the best value for your situation.
Look for Credit-Building Features
One significant advantage of cards designed for bad credit is their focus on credit-building functionality. As you evaluate options, prioritize these key features:
Bureau Reporting: Ensure your card issuer reports your account activity to all three major credit bureaus. This reporting is what actually improves your credit score—without it, your responsible payment behavior won’t be reflected in your score.
Credit Limit Increases: Look for cards that offer automatic credit limit increases based on positive payment history. Some issuers reward cardholders who make on-time payments by raising their credit limit, which can improve your credit utilization ratio and further boost your score.
Graduation Opportunities: The best bad credit cards provide a clear path to graduation into better cards. Some issuers allow you to upgrade from a secured card to an unsecured card after demonstrating responsible use, or they offer their own premium card options with better terms once your credit improves.
Understanding Credit Score Ranges
Credit scores follow standardized ranges that help both consumers and lenders understand creditworthiness. The FICO score model, the most widely used in credit card lending decisions, uses the following scale:
| Credit Score Range | Classification |
|---|---|
| 300-579 | Poor |
| 580-669 | Fair |
| 670-739 | Good |
| 740-799 | Very Good |
| 800-850 | Exceptional |
Most credit cards require credit scores of 670 or above for standard approval. The cards featured in this guide specifically serve those with scores below 500, recognizing that building credit is a journey requiring appropriate products at each stage.
Comparing Your Options: Key Features
| Card Name | Best For | Annual Fee | Security Deposit | Key Benefit |
|---|---|---|---|---|
| Capital One Platinum Secured | Low deposit requirements | $0 | $49-$200 | Flexible deposit options |
| Discover it® Secured | Earning rewards | $0 | $200 | Doubled first-year cash back |
| Self Visa® Secured | Credit mix building | $25 after year one | $100 | Diverse credit building |
| Petal 2 Visa® | Avoiding deposits | $0 | None | No security deposit required |
| Mission Lane Silver Line | No deposit cards | $0 | None | Accessible approval |
Building Credit Responsibly
Selecting the right card is only the first step. Maximizing the credit-building potential of your card requires disciplined financial habits. Pay your balance in full and on time every month—payment history accounts for 35% of your FICO score, making it the most important factor. Even one late payment can significantly harm your progress.
Keep your credit utilization ratio low by using only a small percentage of your available credit limit. Financial experts generally recommend using less than 30% of your limit. For example, if your card has a $500 limit, try to keep your balance below $150. This demonstrates to credit bureaus that you can manage credit responsibly without maxing out available limits.
Avoid closing your card after your credit improves. The length of your credit history matters, so keeping old accounts open—even if you’re no longer using them actively—helps maintain a longer average account age, which positively impacts your score.
Frequently Asked Questions About Cards for a 500 Credit Score
Q: Can I actually get approved for a credit card with a 500 credit score?
A: Yes, absolutely. The cards featured here are specifically marketed for credit scores in the poor range, including those below 500. If your score falls below 580, you could potentially qualify for any of these cards. Approval is generally easiest with secured cards that require a security deposit, though you may also receive approvals for annual fee cards designed for bad credit. Most traditional cards require scores of 670 or above, so bad credit cards fill an important market need.
Q: What’s the difference between a secured and unsecured card for bad credit?
A: Secured cards require a cash security deposit that becomes your credit limit, while unsecured cards do not. Because secured cards have collateral backing them, issuers take on less risk and approve more applicants with poor credit. Unsecured bad credit cards typically have higher interest rates and more fees since they lack this collateral protection. However, unsecured cards don’t tie up your cash upfront, making them attractive if you don’t have funds available for a deposit.
Q: How long does it take to improve my score using a bad credit card?
A: Credit score improvement is gradual. Most people see noticeable improvements within 3-6 months of responsible card use, with more significant gains typically visible after 12-24 months. Factors like payment history, credit utilization, and account age all play roles in this timeline. Consistency is key—making on-time payments and keeping balances low every single month compounds positive effects on your score over time.
Q: Should I get a secured or unsecured card if I have a 500 credit score?
A: With a 500 credit score, a secured card is typically your best option due to higher approval rates and lower interest rates. Secured cards also help you build credit effectively since you control the credit limit through your deposit. If you qualify for an unsecured card, carefully evaluate whether the fees justify avoiding the security deposit. For most people at this credit level, a secured card offers better terms and faster credit improvement.
Q: What should I avoid when using a bad credit card?
A: Avoid late payments at all costs—they severely damage credit scores. Don’t max out your credit limit; keep utilization below 30%. Avoid applying for multiple cards in a short period, as each application temporarily lowers your score. Don’t ignore cards with excessive fees just because you have bad credit; calculate total costs before applying. Finally, don’t close your card once your credit improves; keeping it open maintains your credit history length.
Q: Can I upgrade from a secured card to an unsecured card?
A: Yes, many issuers offer upgrade opportunities. Capital One, Discover, and other major issuers typically allow you to graduate from a secured card to an unsecured card after demonstrating consistent on-time payments and credit improvement. This upgrade returns your security deposit and transitions you to better card terms, making it an important milestone in your credit-building journey. Check with your card issuer about their specific upgrade criteria.
References
- Best Credit Cards for Bad Credit — Bankrate. November 2025. https://www.bankrate.com/credit-cards/bad-credit/credit-cards-for-500-credit-score/
- What Credit Score Do You Need For A Credit Card? — Bankrate. November 2025. https://www.bankrate.com/credit-cards/advice/what-credit-score-for-credit-card/
- How To Get A Credit Card With Bad Credit — Bankrate. November 2025. https://www.bankrate.com/credit-cards/bad-credit/how-to-get-a-credit-card-with-bad-credit/
- The Best Unsecured Cards for Bad Credit — Bankrate. November 2025. https://www.bankrate.com/credit-cards/bad-credit/unsecured-bad-credit/
- FICO Score Ranges and Credit Categories — Fair Isaac Corporation. November 2025. https://www.myfico.com/credit-education/credit-scores
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