Key takeaways
- Find easy-approval cards with minimum credit limits of $500+ and no security deposit.
- Use your low limit credit card to build credit.
- Access more spending power and better financial products with a higher score.
A $500 credit card limit gives you more than a little buying power; it gives you a spending limit that can make a difference. Whether it’s for an emergency purchase, a small project, or to have as a safety net, a $500 credit card limit can be a lifeline.
The amount of $500 is still a modest limit, but when most unsecured cards for low scores start you off with only $200 or $300, a $500 credit limit can seem like you’ve hit the jackpot. It means you can spend more per month and gives you greater flexibility in improving your credit score.
We’ve compiled a list of the best $500+ limit credit cards for poor scores so you can get an idea of what limits each company offers and what you can qualify for. Take a look at the list below and see if there’s a card for you.
Jump to:
- Best unsecured cards with $500+ limits
- How to compare $500 credit cards for bad credit
- Is $500 a low credit limit?
- Can I get a high-limit credit card with a poor score?
- How to apply for a credit card with a $500 limit guaranteed approval?
- What is the highest-limit card you can get?
- How to improve your credit score with a $500 credit card
- Bottom line
Best unsecured cards with $500+ limits
Financial institutions understand that mistakes happen, and not everyone has money lying around for a secured credit card, so many offer unsecured cards for poor scores. Most of them aim to improve your score, and a few even offer cash back rewards. Use your unsecured card responsibly, and you’ll qualify for one with an even higher limit.
Take a look at the cards below to find a $500 credit card limit for bad credit that suits your needs.
How to compare $500 credit cards for bad credit
When comparing cards consider more than the initial credit limit. Take a look at the score requirements, fees, and interest rates to make sure you take the best offer.
Credit score requirements
Look for subprime cards specifically designed for applicants with poor scores. These cards require a lower minimum credit score, often below 600.
Fees and interest rates
Another important factor is the cost of the card. Many credit cards for low scores come with higher annual, monthly maintenance, or one-time processing fees. Plus, there are standard foreign transactions and late payment fees. Compare the annual percentage rates (APRs) as well. Finding the lowest possible APR can save you money on carried balances.
Rewards and benefits
Even with a $500 credit line, some cards offer rewards and benefits. You may be able to earn cash back or receive free monthly credit score updates.
Security deposits
For secured credit cards, the security deposit is a key consideration. This deposit typically sets your limit. So if you want $500, you’ll have to put down a $500 deposit. Some secured card issuers will give you a higher credit line without additional deposits, based on your responsible usage, while others don’t require a security deposit at all.
By carefully evaluating these factors, you can choose the best $500 credit card for bad credit that fits your budget.
Tired of being turned down?
Is $500 a low credit limit?
For most people, a $500 limit credit card is considered very low. According to 2023 data from Experian, the average American has a cumulative credit limit of $29,855 across four cards.
Now, this is an average. If you break it down by score range, those with higher scores have higher limits, and those with lower scores have lower limits. If you fall into the subprime category, any score below 580, your credit limit will be on the low side.
For example, we looked at a few credit cards for low scores and found initial limits ranging from $300 up to $1,000. Surge Mastercard® offers an initial limit between $300 and $1,000. The Fortiva® Mastercard® offers an initial limit range of $350 up to $1,000. Indigo® Mastercard® and Destiny Mastercard® both have an initial limit of $700.
An initial credit limit of $500 is fine. Everyone has to start somewhere. A $500 credit limit is a lot better than a $300 one. A $300 limit means you can only spend $90 a month if you want to improve your credit score.
A $500 limit gives you some wiggle room to buy groceries and cover unexpected expenses without overextending yourself. However, it would still be great to have a higher limit. Pay off your low-balance credit card each month, and you should be entitled to a limit increase.
Need money now and can’t wait?
How much should you spend on a $500 credit limit?
A $500 limit gives you modest purchasing power – not a lot. So managing your spending is crucial. While you can choose to spend as much or as little as you like, here are some recommendations to keep in mind, especially if you aim to raise your rating.
First, a card can be a good way to cover unexpected expenses if you lack an emergency savings fund. If you max out your card, it won’t be available as a safety net when needed. Keeping some of your limit unused can help ensure you have access to funds in an emergency.
Secondly, experts recommend using only 30% or less of your limit, which amounts to $150 on a $500 card. Staying well below your limit shows lenders that you are a responsible borrower. A high credit card balance can negatively impact your score, as it suggests you may be over-reliant on borrowing.
One way to keep your usage low is to make payments throughout the month. If you spend $150 and then pay it off, your usage is back at 0%. The issuer only reports your utilization at the end of the month so you can spend, pay your bill, and bring it down again.
Can I get a high-limit credit card with a poor score?
There are hundreds of card options for every score type. Your score determines your initial limit, interest rate, annual fee, and additional fees.
Financial institutions try to avoid risk. The lower your score, the higher the risk you are considered to be. Not without reason. FICO has compiled data showing that consumers with poor scores are much more likely to default than those with good to excellent scores. Not all banks will even work with people with low scores. The ones that do charge more for their financial products to offset the risk. Basically, they want to make money upfront.
Think about it this way: If you default on an unsecured credit card, the bank can do very little to get its money back. As a precaution, the bank charges applicants with low scores higher interest rates and more fees. If you default, the bank won’t lose money.
Banks will also give high-risk applicants low credit limits before they’ve proved themselves responsible. If they default on a $300 balance it costs the bank a lot less than defaulting on a $10,000 one.
It’s tough to get a high limit if you have a poor score, but not impossible. Plenty of unsecured cards come with $500+ limits, up to $2,000. You have to demonstrate that you can pay your bills on time and keep your usage low to get a higher limit.
New
You can also get a secured credit card and set your own limit. Secured cards are easier to get since you have to put down a refundable security deposit. The deposit determines your limit and acts as collateral, reducing the issuer’s risk. Some secured cards even offer a higher limit with no deposit and no credit check!
How to apply for a credit card with a $500 limit guaranteed approval
Applying for a card is one of the basic parts of adult life. Most people have three to four cards and see offers for more all the time. Now, guaranteed approval is a term you’ll often hear, but unfortunately, there’s no such thing. No card issuer approves every single candidate. That said, the cards we’ve listed offer ‘almost’ guaranteed approval. They have lenient requirements and many offer a $500 credit limit to applicants with bad credit. Some cards even let you earn cash-back rewards.
To apply for any card, follow these steps:
- Research: Compare different cards to find the one that suits your needs. Look at the potential limits and rewards. Consider the foreign transaction fee, annual fee, and APR range. Check out the issuer as well. See if they have a good reputation and if they offer easy online access or mobile apps.
- Check eligibility: Ensure you meet the card’s requirements, such as minimum income and score. There is no point in applying for a card you don’t qualify for.
- Gather information: Have your personal, financial, and employment details ready, including your Social Security Number, employment status, and housing expenses. Accurate and complete information increases your chances of approval.
- Prequalify: Try to prequalify to see the minimum credit limit you’ll be offered, the APR (annual percentage rate), and any associated fees. Prequalification doesn’t give guaranteed approval but lets you assess your chances and compare offers without affecting your score.
- Read terms and conditions: Pay attention to the fine print – annual fee, late payment fee, interest rates, and repayment terms – to avoid any surprises. Many cards for poor scores come with high interest rates and extra fees.
- Apply online: Choose the credit card you want, then vVisit the issuer’s website and fill out the application. You may get instant approval or have to wait a few days.
- Get your card: Once you’re approved, you’ll receive your card in the mail. This can take up to 10 business days. Many issuers give you your electronic card number instantly so you can start making purchases online right away.
Looking for a card that gives you more spending power?
What is the highest-limit card you can get?
Limits vary widely based on your income, score, and the lender’s policies. For individuals with excellent scores and substantial income, some premium cards offer limits that can reach tens of thousands of dollars. These high limits are often accompanied by lucrative rewards and benefits.
For instance, the Chase Sapphire Reserve® has a high minimum credit limit of $10,000. The Chase Sapphire Preferred® Card’s minimum credit limit is only $5,000 but Credit Karma reports that limits can be as high as $100,000. Most credit card issuers only disclose the minimum limit so if you start out with $5,000 you can expect it to go higher.
The correlation between your score, income, and limit is straightforward: the higher your score and income, the higher your limit will likely be. Maria Adams from WalletHub writes, “In order to get $100,000+ in spending power, you need a lot of assets and income, little debt, and a spotless credit history.” This is expected since credit card issuers want to be paid back. A good credit score indicates that you are low risk and likely to repay what you owe on time. A high income and little debt tells issuers you can afford to spend more. Credit card companies want to minimize their risk. They will reserve high limits for those with adequate income to support them. They do not want you to be tempted to spend more than you can afford.
A more modest limit, such as $500, can be a smart choice to get you started. It offers some spending flexibility while keeping your potential debt manageable. You can easily pay off your balance in full each month, helping you avoid interest charges and build a positive payment history.
As you demonstrate responsible habits, you can request a limit increase. Alternatively, you can look for new cards that offer higher limits and better terms. Gradually increasing your limit while maintaining a low balance will improve your score over time.
How does the issuer set your initial credit limit?
Every issuer has slightly different criteria for determining your limit, but all have the same goal: to let you borrow only what you can reasonably repay.
In order to set your limit, Chase considers your:
- Income and expenses
- Debt
- Credit utilization
- Payment history
Income and expenses: The more you earn, the more you can afford to borrow. The Credit Card Act of 2009 requires issues to consider your ability to pay when setting limits. This is why applications ask for your income and many for other monthly payments like rent or mortgage. Knowing how much you spend on housing each month in addition to your annual salary helps issuers know what you can afford to spend on credit.
Existing debt: Lenders are interested in your debt-to-income ratio (DTI) – the debt you have versus how much you earn. A low ratio shows you can handle debts responsibly. Lendingtree found that a good DTI is anything below 35%, but the general rule is to keep it below 43%. The lower your ratio, the higher the limit you’ll likely receive.
Credit utilization: Credit utilization is the percentage of credit you use versus how much is available. Lenders use this figure to calculate risk. A utilization rate higher than 30% indicates that you are reliant on borrowing and at risk of defaulting. A lower utilization shows you don’t over spend and may result in a higher credit limit.
Payment history: A history of timely payments with few to no missed payments signals that you’re a low-risk borrower. It tells creditors that you are likely to pay your bills when they are due. So they are more likely to issue a higher credit limit.
Next time you apply for a $500 credit card, consider these factors. To get the limit you want, you might want to pay down some debt, establish a positive payment history, or ask for a raise.
How to request an increase
Your limit is not set in stone. Card companies want to give you higher credit limits. The more you spend, the more likely you are to spread payments out over a few months, and they’ll earn interest. Many review your account periodically to see if you qualify for an increase. If you don’t want to wait, you can go online or call a representative to request one.
The issuer will want to know your salary and rent or mortgage payments to determine what you can afford. If you’ve received a raise or changed to a higher-salaried job, let them know. That might be enough to get you the limit you want.
Tell them how you’ve improved your score and how responsible you’ve been. A history of consistent on-time payments will prove your case.
If there’s no limit increase for your current card, ask if you can upgrade to one with a higher starting line and no annual fee.
Do not ask for too large a limit increase. You will be viewed with suspicion and appear desperate. It’s best to ask for a 10% to 25% increase.
If you’re approved, the increase will take effect right away. Note that some issuers perform hard inquiries to evaluate your request, which can temporarily lower your score.
Want to start building credit?
How to improve your credit score with a $500 credit card
Raising your rating with a $500 credit card limit is perfectly doable. You just have to be disciplined and stay on top of your usage and payments.
The first thing to know is how your score is determined. The two major credit scoring models, FICO and VantageScore, both use similar factors. As 90% of lenders use FICO, so we’ll focus on this model. As myFICO nicely explains, Your FICO score is calculated based on:
- Payment history – 35%
- Amount used – 30%
- Length of credit history – 15%
- Mix of account types – 10%
- New inquiries – 10%
Improving your score with low-limit credit cards is the same as with any other card. Your issuer will report your usage and payment history to the three major credit bureaus – Experian, Equifax, and TransUnion – each month. Make timely payments and keep a low card balance, and your score should go up.
To effectively raise your rating, follow these tips:
Always pay on time. On time payments tell lenders that you’re reliable and they will get their money back. Late or missed payments damage your score and stay on your report for up to seven years. Set reminders on your phone or automate payments to avoid this pitfall.
Maintain a low utilization ratio. In an ideal world, you’ll use less than 30% of your limit but more than 0%. On a $500 card, this means keeping your balance below $150.
Use your card for small regular purchases. A $500 limit card is perfect for filling up your tank or paying for groceries. Use it for smaller everyday expenses so that it is easier to pay the balance in full each month.
Pay your bill more than once a month. You don’t have to wait till your minimum payment is due to pay your bill. You can make payments at any time. Multiple payments help keep your utilization low.
Wait to apply again. It can be tempting to apply for a new card right away. The problem is that the issuer will conduct a hard inquiry, temporarily lowering your score. Wait at least a year before applying again.
Don’t close old accounts. Keep old accounts open and active unless they have too many fees. This makes it easier to maintain a low utilization ratio and increases the amount of time you’ve had accounts. Put a small recurring charge on the account and set up autopay to avoid missing payments.
Expand your reported payments. Certain companies report other monthly payments – rent, phone bill, utilities, subscriptions – to the three major credit bureaus, which can further boost your score.
Have a mix of account types. Creditors like it when you have both revolving credit (cards) and installment credit (loans). It shows that you can handle different types of borrowing responsibly. That said, it’s an insignificant factor. Don’t go taking on debt you can’t afford.
Frequently asked questions
1. Can I get a $500 credit card with bad credit?
Yes, you can get credit cards with a $500 limit with bad credit. Many issuers offer secured credit cards, which require a refundable deposit, typically matching your limit. There are also Mastercard and Visa credit cards with a $500 limit for applicants with poor scores. These cards can help you rebuild your score with responsible use.
2. Can I get a credit card without depositing money?
Yes, you can get a card without depositing money, even with a poor score. These are known as subprime unsecured cards. While they don’t require a security deposit, they usually come with higher interest rates and fees like an annual fee. Responsible use of these cards can help improve your score over time, increasing your access to better options with fewer fees and more rewards.
3. Which card is the easiest to get with a poor score?
Secured cards are typically the easiest to get if you have a low score. These cards require a refundable security deposit, which acts as your limit. Because the deposit minimizes the risk for the issuer, approval rates are higher.
4. Which credit card issuer approves everyone?
No issuer approves absolutely every candidate. Secured credit cards are the easiest to be approved for as they are designed to help you raise your rating. Subprime unsecured credit cards are also easy to be approved for including the ones listed above.
5. What store credit card is the easiest to be approved for with a 500 score?
Store cards are generally easy to qualify for. Many issuers will accept candidates with low scores. The problem with store cards is they are typically closed-loop cards, meaning you can only use them at the issuing store. They also tend to have higher interest rates than a regular Mastercard or Visa credit card.
6. What is the best subprime card with an initial line of $500?
The best $500 credit card for bad credit applicants typically features no annual fee, reports to all three major credit bureaus, and offers a straightforward approval process. Secured credit cards are a common choice, requiring a refundable security deposit equal to the limit, making it easier for those with poor credit to qualify.
7. Can you build credit with low-limit credit cards?
Yes, it is entirely possible to raise your score with a low-limit credit card. Spend less than 30% of your credit limit and pay your bill on time every month. Over time, your score will imprvoe and you can qualify for cards with higher limits.
8. How can I get a $500 dollar credit card with no money down?
Research unsecured credit cards that accept applicants with poor scores. Many issuers offer cards with initial limits of $500, with no deposit required. You can also look into retail store cards, as they typically have more lenient requirements.
Bottom Line
Credit cards with a $500 limit are a good starting point. They can help you improve your score and develop a relationship with the issuer that can lead to upgrades, limit increases, and other perks.
A $500 limit is modest but it’s enough to show you can be trusted borrowing money. Demonstrate responsible habits – pay on time, keep your balances low – and you can achieve a good score and open the way to cards with higher limits and more perks.
