5 Best Credit Cards for a 500 Credit Score (or Less)

Jodie Price

By Jodie Price | Updated August 21, 2025

Having a credit score of 500 or lower can make getting approved for a credit card more difficult, but there are still strong options available. Many of the best cards for this range focus on rebuilding credit through secured deposits or basic unsecured access, often with no annual fees. This list features five credit cards that help low-score users begin improving their credit history with manageable terms and beginner-friendly features.

  • Capital One Platinum Secured Credit Card

    The Capital One Platinum Secured Credit Card is a beginner-friendly option aimed at individuals with poor or no credit. It helps users build credit history with responsible use and offers flexibility in deposit amounts.

    It requires a refundable security deposit, which may be lower than the initial credit limit depending on creditworthiness. The card does not offer rewards, but it focuses on affordability and credit improvement.

    Earning Structure

    • This card does not offer cash back or points rewards.

    Welcome Bonus

    There is no welcome bonus with this card.

    Card Details

    • Annual Fee: $0
    • Security Deposit: $49, $99, or $200 (based on creditworthiness)
    • Credit Limit: Starts at $200
    • Foreign Transaction Fees: None
    • Reports to all three major credit bureaus

    Key Benefits

    • No annual fee
    • Low minimum deposit to open account
    • Helps build or rebuild credit
    • No foreign transaction fees

    Redemption Options

    Not applicable, since the card does not offer rewards.

    Credit Requirements

    This card is designed for applicants with low or poor credit scores, making it easier to get approved.

    Spending Limitations / Potential Drawbacks

    • The credit limit is tied to the deposit amount, which may limit purchasing power.
    • There are no rewards or bonuses.

    Why it Works for Beginners

    It offers a low-cost way to build credit without annual fees or high deposits, making it accessible for people starting or rebuilding credit.

  • Petal® 1 “No Annual Fee” Visa® Credit Card

    The Petal 1 Visa is an unsecured card that helps users with limited or no credit build a positive payment history without requiring a security deposit. It offers low ongoing costs and uses alternative data—like bank account and income history—to evaluate eligibility.

    While it doesn’t earn standard cash-back rewards, it supports credit building through its “Cash Offers” program and potential credit limit increases.

    Earning Structure

    • 2%–10% cash back at select merchants through Petal Offers (no earning on general purchases)

    Welcome Bonus

    No welcome bonus is offered with this card.

    Card Details

    • Annual fee: $0
    • Foreign transaction fees: None
    • APR: High variable rate (approx. 28.99%–33.99%)
    • Credit limit: Typically ranges from $300 to $5,000 based on eligibility
    • Issuer: WebBank; Platinum-level Visa benefits included

    Key Benefits

    • Helps build credit without a security deposit
    • No annual fee means fewer costs
    • Accessible to those with poor or no credit
    • Offers online account management tools

    Redemption Options

    Cash back from eligible Petal Offers can be redeemed as statement credits or direct deposit; no minimum redemption amount.

    Credit Requirements

    Accessible to applicants with fair, limited, or no credit history, including those without a FICO score.

    Spending Limitations / Potential Drawbacks

    The card has limited perks compared to other cards.

    Why it Works for Beginners

    It allows people new to credit to start building a credit history without high fees or deposits.

  • Discover it® Secured Credit Card

    The Discover it® Secured Credit Card is ideal for individuals looking to build or rebuild credit. It combines responsible-use reporting with cash back rewards and no annual fee.

    This card offers automatic reviews starting at seven months to determine eligibility for an upgrade to an unsecured card. It also includes a standout first-year Cashback Match, effectively doubling rewards.

    Earning Structure

    • 2% cash back at gas stations and restaurants (up to $1,000 in combined purchases each quarter)
    • 1% cash back on all other purchases

    Welcome Bonus

    Discover matches all the cash back you earn at the end of your first year automatically, with no spending thresholds or caps.

    Card Details

    • Annual fee: $0
    • Security deposit: $200 to $2,500 (sets your credit line)
    • APR: Around 27.24% variable purchase APR, with intro balance transfer rate (~10.99%) available
    • Foreign transaction fees: None
    • Reports to all three major credit bureaus

    Key Benefits

    • No fees to apply or maintain the card
    • Automatic cash back match at year-end
    • Helps build or rebuild credit history
    • Access to free FICO credit scores

    Redemption Options

    Cash back can be redeemed at any time as a statement credit or direct deposit; rewards never expire.

    Credit Requirements

    Accessible to applicants with very low to limited credit scores (including scores under 500), and no credit score is required to apply.

    Spending Limitations / Potential Drawbacks

    The credit limit is based on the deposit, so it may be low for some users.

    Why it Works for Beginners

    It combines credit-building with a rewards program and no annual fee, making it easy to start improving credit while earning cash back.

  • Petal® 2 “Cash Back, No Fees” Visa® Credit Card

    The Petal® 2 Visa is designed for people building or rebuilding credit. It does not require a security deposit, making it different from many starter cards. This card also has a simple application process, which helps those with little or no credit history.

    Cardholders can earn cash back rewards while improving their credit score. The card mixes credit building with everyday spending benefits, which can be valuable for users with lower credit scores.

    Earning Structure

    • 1% cash back on all purchases
    • Up to 1.5% after 12 on-time payments
    • 2%–10% cash back at select merchants

    Welcome Bonus

    This card does not currently offer a welcome bonus.

    Card Details

    • Annual Fee: $0
    • Security Deposit: Not required
    • APR: 18.24% to 32.24% variable
    • Credit Limit: $300 to $10,000
    • No foreign transaction fees

    Key Benefits

    • Cash back rewards with no caps
    • No fees for late payments or foreign transactions
    • Credit score reporting to major bureaus
    • Mobile app for easy account management

    Redemption Options

    Cash back rewards can be redeemed as statement credits or direct deposits.

    Credit Requirements

    Accepts applicants with fair or limited credit; alternative underwriting methods are used for evaluation.

    Spending Limitations / Potential Drawbacks

    The credit limit may start low and increase slowly over time.

    Why it Works for Beginners

    The card supports credit building without requiring a deposit and rewards responsible spending.

  • Mission Lane Visa® Credit Card

    The Mission Lane Visa® Credit Card is designed for people with poor or limited credit history. It helps users build or rebuild credit with simple, clear terms and no security deposit required. The card is unsecured, making it more accessible for those with low scores.

    It offers a user-friendly app to track payments and request credit limit increases. Responsible use is reported to all three major credit bureaus, which can improve credit scores over time.

    Earning Structure

    • No specific rewards or cashback features

    Welcome Bonus

    No sign-up or welcome bonus is currently offered.

    Card Details

    • Annual Fee: $0 to $59 (based on creditworthiness)
    • Security Deposit: None required
    • APR: 19.99%–33.99% variable
    • Credit Limit: Starts at $300 and may increase over time
    • Reports to all three major credit bureaus

    Key Benefits

    • No security deposit required
    • Helps rebuild credit over time
    • Transparent fees and clear terms
    • Credit limit increases possible with good payment history

    Redemption Options

    Not applicable, as this card does not offer points or cashback rewards.

    Credit Requirements

    Applicants can qualify with a credit score as low as 500 or less.

    Spending Limitations / Potential Drawbacks

    Users may face higher annual fees depending on creditworthiness. The card does not offer rewards or bonuses.

    Why it Works for Beginners

    Its unsecured nature and clear reporting help beginners build credit safely without upfront deposits or hidden fees.

Frequently Asked Questions

What are the best secured credit cards available for a credit score of 500 or less?

The best secured cards include options like the Discover it® Secured Credit Card and Capital One Platinum Secured Credit Card. Both report to all three credit bureaus and require a refundable deposit, which sets your credit limit. These cards are designed to help rebuild credit with responsible use.

Are there any credit cards that offer a $5,000 limit for consumers with poor credit history?

Credit cards offering a $5,000 limit are rare for people with poor credit. Most cards for low scores have limits under $1,000 initially. Some cards may increase limits over time with responsible use, but a high starting limit is uncommon.

Can I get a credit card without a credit check and instant approval if I have bad credit?

You can get certain cards without a credit check, but they are usually prepaid or secured cards and may not build your credit unless they report to credit bureaus. True credit cards with instant approval still typically require at least a soft credit pull and basic income verification. Instant decisions are possible, but approval isn’t guaranteed for applicants with bad credit.

What options are available for unsecured credit cards for consumers with a sub-500 credit score?

Unsecured credit cards for scores under 500 are limited but available through issuers like Mission Lane. These cards often come with higher interest rates and lower starting limits compared to secured options. Responsible use may lead to credit line increases over time, helping users build a better credit profile.

How can I qualify for a credit card with bad credit and no initial deposit required?

You can qualify for a no-deposit credit card with bad credit by demonstrating income, having a stable banking history, and using prequalification tools. Some unsecured cards like Petal® 1 consider factors beyond credit scores. While approval isn’t guaranteed, responsible financial habits improve your chances.