Cards available at a 500 credit score
At a 500 credit score, you can get a credit card — but not the ones with rewards or 0% introductory rates. The cards open to you are secured credit cards, which require a cash deposit, and unsecured cards designed for poor credit, which come with higher interest rates and lower limits. Both exist because card companies know people rebuild credit by using credit responsibly, even when they start from a low score.
The difference matters. A secured card holds your deposit as collateral — you put down $300 to $2,500, and that becomes your credit limit. An unsecured poor-credit card gives you a limit without a deposit, but charges you more in interest and fees to offset the risk. Neither is a trap if you understand what you are paying for: the chance to show lenders you can handle debt.
Your score at 500 means you have missed payments, high balances, or collections in your recent history. Card companies see you as high-risk. That is not permanent — it is a starting point. The cards in this range exist specifically to move you forward from here.
Key Takeaways
- Secured cards require a deposit but often convert to unsecured cards after 6 to 18 months of on-time payments, which improves your score faster than unsecured poor-credit cards.
- Unsecured poor-credit cards charge 25% to 36% APR and annual fees of $35 to $99, so the cost of borrowing is high but you avoid tying up cash as a deposit.
- Both types report to all three credit bureaus, so either one builds your credit history if you pay on time — the card type matters less than your payment behavior.
- A 500 score usually means you were denied for standard cards, but secured and poor-credit cards do not require a perfect history, only proof of current income and an open bank account.
Secured credit cards: how the deposit works
A secured card takes your cash deposit and holds it as collateral. You cannot spend the deposit — it sits in a savings account at the card company's bank. Your credit limit equals the deposit amount, usually between $300 and $2,500. You then use the card like any other card: make purchases, receive a bill, pay it back.
The deposit protects the card company if you stop paying. If you default, they keep the deposit instead of sending you to collections. This is why secured cards approve people with 500 scores — the risk is capped. You are not borrowing against your creditworthiness; you are borrowing against your own money.
Common secured card issuers include Capital One Secured Mastercard, Discover Secured Card, and U.S. Bank Secured Visa. Each has different deposit minimums and annual fees. Capital One's card has no annual fee; Discover's has no annual fee; U.S. Bank charges $25 per year. Check the current terms on each issuer's website, because these change.
After 6 to 18 months of on-time payments, many secured cards convert to unsecured cards and return your deposit. This is the real value: you build credit history while your deposit sits untouched, then you get your money back and move to a better card. Not all secured cards convert automatically — some require you to request conversion — so ask before you open the account.
Unsecured poor-credit cards: higher cost, no deposit
An unsecured card for poor credit works like a regular credit card: you get a limit, you use it, you pay a bill. The difference is the cost. Interest rates run 25% to 36% APR, and annual fees range from $35 to $99. Some cards also charge a one-time processing fee of $75 to $150 when you open the account.
Because there is no deposit, the card company is taking real risk. They charge higher rates to cover the people who default. If you carry a balance, that 30% APR means you pay roughly $30 per month in interest on every $1,000 you owe. The annual fee hits whether you use the card or not.
Examples include Credit One Bank Visa, Milestone Mastercard, and OpenSky Secured Visa (which is unsecured despite the name). These cards report to all three bureaus, so they build your credit history the same way a secured card does. The trade-off is cost: you pay more in fees and interest, but you do not tie up cash as a deposit.
Unsecured poor-credit cards make sense if you cannot afford a deposit or if you want to avoid locking up money. They make less sense if you can scrape together $300 to $500 for a secured card deposit, because the secured card usually has lower fees and converts to a better card after you prove yourself.
What happens to your score when you open a card
Opening a new card triggers a hard inquiry, which drops your score by 5 to 10 points temporarily. This is normal and expected. The inquiry stays on your report for 12 months but stops affecting your score after about three months.
The real score movement comes later. When you use the card responsibly — keeping your balance low, paying on time every month — your score climbs. The factors that matter most are payment history (35% of your score) and credit utilization, meaning how much of your limit you use (30% of your score). If you have a $500 limit and keep your balance under $100, you are using 20% of your limit, which is good.
Most people see a 30 to 50 point increase within 6 months of on-time payments. After 12 months, the increase is often 50 to 100 points. This assumes you are not missing payments, maxing out the card, or opening multiple new cards at once. Each of those moves works against you.
The card company reports to the bureaus monthly, usually around your statement date. You do not have to carry a balance to build credit — paying in full each month is actually better for your score because it keeps your utilization low. The card company still reports the account as active and in good standing.
Comparing secured and unsecured cards at 500 score
| Feature | Secured Card | Unsecured Poor-Credit Card |
|---|---|---|
| Deposit required | Yes, $300–$2,500 | No |
| Annual fee | $0–$25 | $35–$99 |
| APR | 18%–24% | 25%–36% |
| Processing fee | Usually none | $75–$150 (some cards) |
| Converts to unsecured | Often, after 6–18 months | No |
| Reports to bureaus | Yes, all three | Yes, all three |
How to choose between the two
Choose a secured card if you have $300 to $500 available and can leave it untouched for 6 to 18 months. The lower interest rate and annual fee mean you pay less overall, and the conversion to an unsecured card is a concrete milestone. This is the faster path to a better credit score.
Choose an unsecured poor-credit card if you cannot afford to set aside a deposit or if you need the full limit when ready without locking up cash. You will pay more in fees and interest, but you avoid the deposit requirement. This makes sense if your cash flow is tight or if you have already tried a secured card and want to diversify your credit mix.
Do not open both at the same time. Each new card triggers a hard inquiry and lowers your score slightly. Open one, use it responsibly for 6 months, then consider a second card if you need a higher total limit. Multiple new accounts in a short time signals risk to lenders and can hurt your score more than it helps.
What you need to open a card at 500 score
Card companies at this level still verify basic information. You will need a Social Security number, a current mailing address, and proof of income — usually a recent pay stub, tax return, or bank statement showing deposits. Some cards ask for employment information but do not verify it; others call your employer.
You also need an open bank account. Card companies use this to verify your identity and to set up automatic payments. The account does not have to have much money in it — $100 or $200 is usually enough to show you have banking access.
For a secured card, you will transfer your deposit to the card company's bank account as part of the process. This usually happens online when ready after approval. For an unsecured card, there is no deposit, but the process process is otherwise the same.
A 500 score does not automatically disqualify you from anything — it just means you will be approved for cards designed for that score range. The process itself is straightforward. The harder part is using the card correctly once you have it.
Mistakes to avoid after you open the card
Do not max out the card. Even if your limit is $500, using more than 30% of it (so more than $150) hurts your score. Lenders see high utilization as a sign you are desperate for credit, which increases your risk. Keep your balance low and your score climbs faster.
Do not miss a payment. One missed payment stays on your report for seven years and can drop your score 100 points or more. Set up automatic payments for at least the minimum due, even if you plan to pay more later. Missing a payment is the single most damaging thing you can do to a 500 score.
Do not close the card after it converts or after your score improves. Closing an account lowers your score because it reduces your total available credit and shortens your average account age. Keep the card open and use it occasionally — a small purchase every few months is enough — to show the account is active.
Do not explore for multiple cards in a short time. Each process triggers a hard inquiry. Multiple inquiries in 30 days can drop your score 20 to 40 points and signal to lenders that you are desperate for credit. Space new applications at least 6 months apart.
Frequently Asked Questions
Will a secured card hurt my score more than an unsecured one?
Both trigger a hard inquiry, so the initial impact is the same — about 5 to 10 points. The difference comes after: secured cards usually have lower fees and interest, so you build credit faster and cheaper. After conversion to unsecured, your score often rises more than it would with an unsecured poor-credit card alone.
Can I use my secured card deposit as my credit limit right away?
Yes. Once the deposit clears, your limit is available when ready. You can use the card the same day it arrives. The deposit sits in a separate account and never moves unless you default or close the account.
What if I cannot pay my balance in full?
Pay at least the minimum due on time, every time. Paying in full is better for your score, but paying on time is more important than the amount. If you carry a balance, expect to pay interest at your card's APR. A secured card at 20% APR costs less than an unsecured card at 30% APR if you carry a balance.
How long until I can get a regular credit card?
Most people move to a standard card after 12 to 18 months of on-time payments and a score improvement to 620 or higher. Some card companies offer upgrades to their own better products before that. Check your card's terms or call the issuer after 6 months to ask about conversion or upgrade options.
Does it matter which secured card I choose?
The core mechanics are the same, but fees and conversion policies vary. Capital One and Discover have no annual fees; U.S. Bank charges $25. Discover converts more reliably after 6 months; Capital One often takes longer. Read the terms on each issuer's website and choose based on the annual fee and conversion timeline that fits your situation.