If you are looking for the Best Credit Cards for 500 Credit Score then you are at the right place.
In this article, we are providing all the information about Credit Cards for 500 Credit Scores.
Credit cards are available for people with a score of 500 if you’re wondering if you can qualify or not. If your credit score is lower, you may find it harder to find an unsecured credit card. This is because lenders are less likely to lend to people with bad credit. The good news is that you still have options to choose from.
It is unlikely that you will qualify for most traditional unsecured credit cards with a credit score below 500. A secured credit card is an excellent way to slowly rebuild your credit score if you fall into this credit score bracket.
Those with poor credit are usually limited to basic credit cards, and some may charge fees. Some credit-building cards stand out from the rest because they offer cardholder-friendly features.
Credit Cards for 500 Credit Score
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Today’s market offers many options of Credit Cards for 500 Credit Score for people with bad credit, but getting one may be better than getting one with a top credit score.
There is no even split, however. The median credit score in the United States is 600, and the median in the United States is 500. However, a credit score at or below 600 is considered bad credit. Getting credit with Credit Cards for 500 Credit Score or less is not entirely impossible, but it makes things more challenging financially. Read our article on Credit Cards for 650 Credit Score to learn how you can get a credit card if you have a 650 or more credit score.
Best Credit Cards for 500 Credit Score in 2023?
There are several Credit Cards for 500 Credit Score available that can help you improve your credit score. Some secured, and credit builder card issuers can even switch you to a traditional credit card after some time.
Here are the list of 5 Best Credit Cards for 500 Credit Score –
Capital One Platinum Credit Card
Capital One Platinum Secured Credit Card requires a security deposit. The credit line can also be increased if you make a security deposit of up to $1,000. If you use it correctly, it can be an excellent way to improve your credit score. A steady, on-time payment will earn your security deposit back and allow you to upgrade to an unsecured card.
The card suits people with fair credit scores or limited credit histories. Five consecutive months of on-time payments are required to increase the credit limit. There is no annual fee.
Pros & Cons Capital One Platinum Credit Card –
| Pros | Cons |
| All three credit bureaus are notified |
Approval is not guaranteed
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| High credit lines can result in a lower security deposit | APR is high |
| A user can be added as an authorized user |
Credit line increases require approval even with a higher security deposit
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Features of Capital One Platinum Credit Card –
| Feature | Value |
| Annual Fee | $0 |
| Security Deposit | $49 – $200 |
| Credit Limit | Starts at $200 |
| APR | 30.49% |
Discover It Secured Credit Card
The Discover It Secured Credit Card also has a rewards component. The rewards program offers 2% cash back at gas stations and restaurants, and 1% on other purchases. You will also receive a dollar-for-dollar match in your first year on money back earned.
There is a minimum deposit of $200 for credit lines up to $200. If you are eligible for an unsecured card after seven months, Discover can decide if you qualify.
Pros and Cons of Discover It Secured Credit Card –
| Feature | Pros | Cons |
| Credit scores are not required | This means that even if you have bad or limited credit, you may still be eligible for the card. |
The APR is high, so you’ll want to pay your balance in full each month to avoid interest charges.
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| Discover’s match and your spending can earn you cashback | You can earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Discover will also match all of your cash back earnings at the end of your first year. |
An upgrade to an unsecured card takes at least 7 months.
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| A cashback offer never expires | Once you earn cashback, it will never expire. This means that you can keep earning and redeeming cashback for as long as you have the card. |
There is only a one-year cashback match. After your first year, you will no longer earn double cashback.
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| All three credit bureaus are notified |
This helps to build your credit history and improve your credit score over time.
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Features of Discover It Secured Credit Card –
| Feature | Value |
| Annual Fee | $0 |
| Security Deposit | $200 |
| Credit Limit |
Same as deposit, starting at $200
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| APR | 28.24% |
U.S. Bank Cash+ Visa Signature Card
Another reward credit card for people with bad credit is the U.S. Bank Cash+ Visa Signature Card. A security deposit of at least $300 is required, but every purchase will earn you cashback.
This program allows you to earn 5% cash back on two categories you choose each quarter. You will also receive 5% cash back on air, hotel, and car fees when they are booked through the Rewards Travel Center. The card also offers 2% cash back on gas, groceries, or restaurants and 1% on everything else.
Pros and Cons U.S. Bank Cash+ Visa Signature Card –
| Pros | Cons |
| No annual fee |
Select categories quarterly to manage your rewards
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| Bonus categories to boost your cashback |
The Fee for foreign transactions is 3%
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| Secured credit cards that offer some of the best rewards |
Your rewards will be deposited only if you bank with U.S. Banking; otherwise, they will be credited to your statement
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Features of U.S. Bank Cash+ Visa Signature Card –
| Feature | Value |
| Annual Fee | $0 |
| Security Deposit | $300 – $5,000 |
| Credit Limit |
Same as your deposit
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| APR |
19.74% – 29.74%
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Citi Secured Mastercard
If you don’t have any credit, Citi Secured Mastercard might be a good option for you. When you apply for an unsecured card, Citi checks your credit score, but it is less rigorous than when you apply for a secured card. Your income and debt determine whether you qualify.
This card has no annual fee, and it reports to all three credit bureaus to help you build credit. Your Citi account will also receive automatic alerts to keep you informed.
Pros and Cons of Citi Secured Mastercard –
| Pros | Cons |
| Check your credit score for free to see how well you’re doing in building your credit |
There are no introductory offers
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| Make your life easier by choosing your payment due date |
Deposits cannot be refunded until the card is closed and no outstanding payments are owed
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| No credit score is required to qualify |
The credit line must be funded within 14 days of approval
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Features of Citi Secured Mastercard –
| Feature | Value |
| Annual Fee | $0 |
| Security Deposit | $200 to $2,500 |
|
Credit Limit:
|
As much as your deposit |
| APR: | 26.74% |
Capital One Quicksilver Secured Cash Rewards Credit Card
Capital One Quicksilver Secured Cash Rewards Credit Card stands out because it rewards its customers. The Capital One card offers 1.5% cash back on purchases (no categories to manage). The cardholder can also upgrade to a Capital One unsecured card if they make on-time payments and earn back their deposit.
Pros and Cons of Capital One Quicksilver Secured Cash Rewards Credit Card –
| Pros | Cons |
| A $200 minimum deposit is required | APR is high |
| Your cashback can be redeemed as a statement credit, a check in the mail, or a gift card to your favorite store |
There is no bonus for cash back (it’s a flat rate for all categories)
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You can earn as many rewards as you want
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All three credit bureaus receive reports
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An automatic increase in credit lines
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Fraud liability is zero
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Features of Capital One Quicksilver Secured Cash Rewards Credit Card –
| Feature | Value |
| Annual Fee | $0 |
| Security Deposit |
$200 minimum refundable deposit
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| Credit Limit |
$200 to $3,000 depending on creditworthiness
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| APR | 30.49% |
How Much Can anyone Borrow With 500 Credit Score?
Credit limits for unsecured cards for bad credit typically range between $300 and $1,000. Some secured cards can go up to $5,000, but a security deposit is required.
If you are a subprime borrower looking for a personal loan, you can get a small loan of about $2,500, depending on where you get the loan and your income.
You can use credit cards to make recurring purchases. Credit cards have a low spending limit, which may make a personal loan a better option if you need cash for an immediate expense. Credit utilization ratios and credit scores are negatively affected by maxing out your credit cards’ available credit limits.
If you are a person with no credit history you can get Best First Time Credit Card with No Credit History or Guaranteed Credit Card Approval With No Deposit. If you are a student you can apply for Best College Student Credit Cards with No Income and Credit Historyto start with credit card with no credit history.
What to look for while selecting a Credit Cards for 500 Credit Score?
Consider these factors when choosing a Credit Cards for 500 Credit Score –
No Annual Fee
The credit card company shouldn’t charge you for poor credit. It is possible to find many options which do not charge annual fees. You can even get rewards without paying a yearly fee on some cards.
Low Minimum Security Deposit
Having a vast credit line as you build credit is unnecessary. Make sure the security deposit is low on the card you choose. To build your credit score, use the smallest possible amount responsibly.
Reports to All Three Credit Bureaus
The purpose of opening a credit building credit card is to build credit. But it is only helpful if they report to all three credit bureaus. So, when looking for a creditor, always ask which credit bureaus they report to. If the answer is just one or two, keep looking. There is no way to predict which credit bureau a future lender will pull from. Your score should be fixed with all three bureaus to maximize your chances of approval.
Allows You to Monitor Your Credit Score Easily
A credit-building credit card is designed to help you build your credit score. Monitoring your credit score is the only way to determine whether you’re successful. You can access your FICO score for free through many credit card companies. Watch your score and take advantage of this.
Allows You to Upgrade to a Better Card
The reward program on your current credit card needs to be fixed in a different ethan xpect. You need to upgrade. Credit utilization can be kept low, and your credit score can be improved.
FAQs
Can I get a home or auto loan with a credit score in the 500s?
There are indeed mortgage and car loan companies that specialize in providing loans to people with poor credit. These loans have a high-interest rate, which is one of their disadvantages.
Will two credit cards build credit faster?
Two credit cards can help you build credit faster if you can use them and pay them off on time. The credit bureaus will report each card’s payment history and credit line. It can help your credit score increase more quickly and give it more substance.
How Long Will It Take Before I Can Apply for a Better Credit Card?
This depends on two factors: how bad your credit situation is now and how well you manage your current credit card. It may take a few months for your credit score to rise dramatically if you have little credit in conjunction with some late payments. It may be necessary to use one of these cards for a couple of years before you can upgrade if you have a history of late payments or a recent bankruptcy.
Are 500 Credit Score Credit Cards A Good Option?
A 500 credit score could make it challenging to obtain a credit card. It is possible that any cards you qualify for will not provide the rewards you desire from a credit card. As well as lower credit limits and higher interest rates, you’ll likely have to deal with higher interest rates_.
