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Key takeaways
- There are credit cards for low scores that offer easy-approval and limits of $500 and more without a security deposit.
- Use your card to improve your score. A good score gives you access to cards with even higher limits and additional benefits.
- Develop responsible credit habits and you can apply for a limit increase. Higher limits give you even more spending power and make it easier to raise your score.
$500 credit card limit with no deposit gives you more than token buying power, it gives you a spending limit that can make a difference. Whether it’s for an emergency purchase, a small project, or just to have as a safety net, a $500 credit card limit with no deposit required can be a lifeline.
$500 is still a modest limit, but when most unsecured cards for low scores start you off with tiny limits of only $200 or $300, a $500 credit limit can seem like you’ve hit the jackpot.
We’ve compiled a list of the best $500+ limit credit cards for poor to fair scores so you can get an idea of what limits each company offers and what you can qualify for.
Best Unsecured Cards $500+ Limits
Banks understand that financial mistakes happen and not everyone has money lying around for a secured card so many offer unsecured cards for low scores. Most of these cards aim to improve your score and a few even offer rewards. Use them responsibly and you’ll be able to qualify for a card with an even higher credit limit.
For those seeking a $500 credit card limit no deposit, several options meet this need and cater to individuals with low scores.
Take a look at our top picks for best cards with minimum credit score requirements in more detail.
Fortiva® Mastercard®
Fortiva® Mastercard® is a good option option for beginners or those with fair scores. It offers a high initial limit of $1,000, cash back rewards on all purchases, and the option to prequalify before you apply.
With the Fortiva® Mastercard®, you can enjoy cash back rewards up to 3% and the possibility of a $1,000 limit, depending on your income and creditworthiness. Initial limits begin at $350 but you can get increases up to $2,000 with responsible use. Stay on favorable terms with the bank, pay your bills punctually, and report any salary increases to enhance your likelihood of a limit raise.
Prequalify instantly to see if you’re likely to be approved.
Aspire® Cash Back Reward Card
Aspire Mastercard® is a good rewards card for people starting out. It’s easy to be approved for, gives you a high limit, and you can earn up to 3% cash back on eligible purchases.
Earn rewards up to 3% with the Aspire® Rewards Cash Back Reward Card on eligible purchases, including gasoline, groceries, and utility services. Few cards in this category offer as good a rewards program.
Besides the cash back, enjoy free access to your monthly credit score and instant transaction alerts so you’ll know if your card is compromised. You can prequalify instantly without hurting your score.
Indigo Mastercard®
Indigo Mastercard® is a pretty good card for people with low scores. It’s easy to be approved for without a security deposit, reports your monthly payments, and offers a moderate limit.
Indigo Mastercard® is a no-fuss card designed for low ratings. There are no rewards to keep track of with this card, instead it keeps things simple so you can focus on improving your score.
There are a few key protections in case the card is lost or stolen. You will not have to pay for any unauthorized purchases and your personal data is monitored to prevent identity theft.
Milestone® Mastercard®
Milestone® Mastercard® is a reasonable choice for anyone looking to improve their rating without a security deposit. The card is easy to qualify for, reports payment history, and comes with all the benefits of a Mastercard®.
Milestone® Mastercard® is designed for anyone looking to boost their scores. It reports your payment history to all three bureaus ensuring that on time payments and low balances will improve your rating.
Use the card nationwide anywhere Mastercard is accepted and enjoy all the perks of a Mastercard including zero liability fraud protection.
Destiny Mastercard®
Destiny Mastercard® is a straightforward credit building card. It is easy to be approved for, you can even prequalify, and it offers the advantage of a $700 limit.
Destiny Mastercard® offers a high initial limit of $700 and is accepted almost everywhere around the world. Use the card to boost your score with one time payments and every day purchases.
You can easily prequalify in 60 seconds or less without impacting your score.
Want a higher limit?
Check out Credit Cards with $1000 Limit – Guaranteed Approval.
Is $500 a Low Credit Limit?
If you have a very low income, a $500 limit may seem just fine. But for most people, it is considered very low. According to Experian, the average American has a cumulative credit limit of $28,930 across 4 different cards.
Now this is an average. If you break it down by score range, those with higher scores have higher limits and people with lower scores have lower limits. If you fall into the subprime category, any score below 580, your average limit will only be $2,645. This is still a lot higher than $500.
A $500 limit is fine to start out with. Everyone has to start somewhere. A lot of cards for low scores only give $200-$300 initial limits. It is very hard to improve your score and benefit from a minimum credit limit as low as $300.
$500 gives you some wiggle room to buy gas and cover unexpected expenses. Use your card responsibly, pay off your credit card balance each month, and you should be able to get a limit increase.
How Much Should You Spend on a $500 Credit Limit?
A $500 limit only gives you a modest purchasing power. You can choose to spend as much or as little as you like, but there are things you should keep in mind, especially if you want to improve your score.
First off, a credit card can be a good way to cover unexpected expenses if you do not have an emergency savings fund. If you max out your card, you won’t have it as a safety net.
Secondly, experts recommend only using 30% or less of your available credit, which in this case is $150. Staying well below your limit demonstrates to lenders that you are a responsible borrower.
How Can You Build Credit with a $500 Limit?
Building credit with a $500 limit is perfectly doable. You just have to be disciplined.
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. Set reminders on your phone or automate payments to avoid this pitfall.
Maintain a low credit utilization ratio. In an ideal world, you’ll use less than 30% of your limit. On a $500 card, this means keeping your balance below $150.
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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 off 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 credit card account right away. The problem is the issuer will conduct a hard inquiry temporarily lowering your score. Wait at least a year before applying again.
Expand your reported payments. Companies like StellarFi report other monthly payments – rent, phone bill, utilities, subscriptions – to the three major credit bureaus, which can further boost your score.
How Can I Get a Credit Card With No Money Down?
It is entirely possible to get a $500 credit card limit with no deposit when you have bad credit. Many credit card issuers offer cards with a $500 limit that do not require a security deposit. Some even offer rewards like Fortiva Mastercard® and Aspire® Cash Back Rewards Card.
1. Do your research
2. Prequalify and compare offers
3. Apply for the card you want
To qualify for a $500 credit card limit with no deposit, start by researching cards designed for low scores. It’s important to read the terms and conditions carefully as interest rates and fees can be high.
Try to prequalify to see what limit you’ll be given and what the fees will be. Prequalifying does not mean you’ll be approved but it lets you see your chances and compare offers without hurting your score.
Choose your card and apply online. It only takes a few minutes. Nothing is guaranteed, but the cards we listed have more lenient requirements so you’re more likely to be approved.
Find even more card offers on MoneyFor.
Can I Get a High-limit Credit Card with Fair to Bad Credit?
There are hundreds of card options for every score type. If you have fair or even a bad credit it doesn’t mean you won’t be able to get a card. What your score determines is:
Banks try to avoid risk. The lower your score the higher the risk you are considered to be. Not all banks will even work with people with low scores. The ones that do, charge more for their cards to offset the risk.
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 so that if you default, the bank won’t lose money.
Banks will also start high risk applicants off with low limits until they’ve proved themselves responsible. Defaulting on a $300 balance costs the bank a lot less than defaulting on a $10,000 one.
It can be challenging to get a high limit card if you have a low score but not impossible. There are plenty of unsecured cards with $500+ limits and many go up to $2,000.
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 and enabling them to offer cards to people with very low scores. There are even some secured cards that offer a $500 credit limit with no deposit and no credit check!
What is the Highest Credit Card Limit You Can Get?
The highest limit you can get varies widely based on your income, credit history, and the lender’s policies. For people with excellent scores and substantial income, some premium cards offer limits that can reach into the tens of thousands of dollars.
The higher your score and income the higher your credit limit will be. The issuer wants to make sure that you can manage the limit they set. A higher limit can send you into debt if you don’t have the income to support it.
For those starting out, a more modest limit like $500 can be a smart choice. It gives you a little flexibility to spend while making it easier to pay on time and in full. As you develop responsible habits you can ask for a limit increase or look for a card with a higher limit.
How Does the Credit Card Company Decide Your Limit?
Every issuer has a slightly different way of determining your limit, but all have the same goal, to give you a limit you can repay. Key factors include:
Credit Score: Your score reflects your history of managing debt. A higher score indicates responsible management leading to higher limits.
Income: The more you earn, the more you can afford to borrow. Your income is not limited to your 9-to-5 job. You can also list child support, alimony, retirement accounts, disability payments, and so on.
Existing Debt: Lenders are interested in your debt-to-income ratio (DTI) – how much debt you have versus how much you earn annually. Most want your ratio to be below 35%. The lower your ratio, the higher the limit you’ll get. A low DTI shows you can handle debts responsibly.
Credit History: A history of timely payments and low utilization signal that you’re a low-risk borrower, which can positively influence the limit you’re offered. Keep your utilization below 30% and always pay on time.
Employment Status: Your income is important but so is how long you’ve been employed at your current job. Creditors like stability. Jumping from job to job makes you appear as high risk. Stay at your job for a while before you apply for a new card to increase your chances of getting a high limit.
Consider these factors next time you want to apply for a card with a high limit. It might be a good idea to pay down some debt or stay at your job for a few more months before you apply. Then, when you do so you may be able to get the initial limit you want.
How to Request a Credit Line Increase
Your limit is not set in stone. Card issuers want to give you more spending power. 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 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 a customer 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 limit and fewer fees.
Do not ask for too large a credit limit increase. This will be viewed with suspicion and make you look desperate. It’s best to ask for a 10% to 25% increase.
If you’re approved for the increase it will take effect right away. Be aware that some issuers may perform a hard inquiry to evaluate your request, which can temporarily lower your score.
Bottom Line
Credit cards with a $500 limits are 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.
