Cards available to you at a 500 credit score

At a 500 credit score, you're in the range where most mainstream credit cards will decline you, but you're not locked out entirely. The cards that will consider you are secured credit cards (where you put down a cash deposit), credit-builder cards (designed specifically for people rebuilding from low scores), and occasionally store cards from retailers with their own lending standards. You won't may have access to for rewards cards, travel cards, or anything with a sign-up bonus at this score.

The reason the options narrow is straightforward: a 500 score signals to lenders that you've missed payments, carried high balances, or had other serious problems recently. Lenders see you as high-risk. Secured and credit-builder cards exist because the lender's risk is lower — either you've already handed them the money (secured), or the card is designed to report your good behavior to the credit bureaus rather than rely on your history.

Your actual approval odds depend on whether you have a recent bankruptcy, active collections, or recent missed payments. A 500 score from old damage is easier to work with than a 500 score from something that happened last month. But even with recent damage, secured cards will usually take you.

Key Takeaways

  • Secured credit cards require a cash deposit (usually $200 to $2,500) that becomes your credit limit, and most issuers will approve you at a 500 score if you have the deposit money.
  • Credit-builder cards charge a monthly fee (typically $5 to $10) and report your on-time payments to credit bureaus, but they don't give you a traditional credit line — you're building history, not borrowing.
  • Store cards from retailers like Amazon, Target, and Walmart sometimes approve people with 500 scores because they use different lending criteria than bank cards.
  • Your score will likely improve within 6 to 12 months if you make all payments on time, which opens doors to better cards with lower fees and actual rewards.
  • Avoid cards marketed as "may provide approval" — they often charge high annual fees or require upfront payments that aren't worth the cost.

How secured credit cards work at a 500 score

A secured card is the most straightforward path. You deposit money into a savings account held by the card issuer — usually between $200 and $2,500 — and that deposit becomes your credit limit. You then use the card like any other card: make purchases, pay your bill each month, and the issuer reports your payment history to the three credit bureaus (Equifax, Experian, and TransUnion).

The deposit stays in the account the whole time. You're not spending it. The issuer holds it as collateral in case you stop paying your bill. After 12 to 24 months of on-time payments, many issuers will convert your account to a regular unsecured card and return your deposit. Some let you graduate faster if your score improves enough.

At a 500 score, secured cards are your most reliable option because approval depends almost entirely on whether you have the deposit money and a valid bank account — not on your credit history. Issuers like Capital One, Discover, and U.S. Bank all offer secured cards that regularly approve people with scores in the 500 range. The catch is the annual fee: most charge $25 to $49 per year, and some charge more. Factor that into your decision.

Credit-builder cards: building history without a deposit

A credit-builder card doesn't give you a traditional credit limit. Instead, you load money onto the card yourself (usually $10 to $100 per month), and the issuer reports your on-time payments to the credit bureaus. You're not borrowing — you're building a record of responsible payment behavior.

These cards charge a monthly fee (typically $5 to $10) that comes out of your loaded balance. So if you load $50 and the fee is $5, you have $45 to spend. The appeal is that you don't need a deposit, and you're directly building credit history. The downside is the fee eats into your balance, and you're not actually borrowing money, so the credit-building effect is slower than a secured card.

Credit-builder cards work best if you don't have $200 to $500 for a deposit, or if you want to build history without holding money in someone else's account. Self and Chime both offer credit-builder products that report to the bureaus and approve people with very low scores. But compare the monthly fee against the annual fee of a secured card — sometimes the secured card is cheaper over a year.

Store cards and retail credit options

Some retailers issue their own credit cards and use different approval criteria than banks. Amazon, Target, Walmart, and Best Buy cards sometimes approve people with 500 scores because they're betting on your loyalty as a customer, not just your credit history. The approval odds are lower than with a secured card, but it's worth applying if you shop at these places regularly.

The downside is that store cards usually have higher interest rates than bank cards, and they're only useful at that one retailer (or a small group of affiliated stores). If you're approved, use it only for purchases you'd make anyway, and pay the full balance each month to avoid interest charges. The goal is to add another account to your credit history, not to carry a balance.

Don't apply to multiple store cards at once. Each application creates a hard inquiry on your credit report, and multiple inquiries in a short time can lower your score further. Apply to one, wait a few weeks, and try another if you're declined.

What to avoid: high-fee traps and predatory cards

Cards marketed as "may provide approval" or "no credit check required" almost always come with hidden costs. Some charge upfront fees ($50 to $100) just to open the account, then add annual fees, monthly maintenance fees, and inactivity fees. By the time you've paid all the fees, you've spent more than the card's actual credit limit.

Avoid any card that requires you to pay money upfront before you receive the card, unless it's a secured card where you understand the deposit is collateral. Legitimate secured cards don't charge application fees or processing fees — only an annual fee after you're approved.

Also skip cards that promise to "rebuild your credit fast" or may provide a score increase. No card can may provide that. Your score improves based on your actual payment behavior and how the bureaus calculate your history — not on the card's marketing claims. If a card is making promises about your score, it's trying to sell you something you don't need.

Timeline: when your score will improve

If you get a secured card today and make every payment on time, you should see your score start moving within 30 to 60 days. The first jump is usually the biggest — maybe 20 to 50 points — because you're adding a new account in good standing and showing recent responsible behavior.

After 6 months of on-time payments, you'll likely be in the 550 to 600 range, which opens doors to better cards. After 12 months, you might be at 600 to 650, and many mainstream cards will consider you. After 24 months of perfect payments, you could be at 680 or higher, and you'll have options for cards with rewards and no annual fee.

The timeline depends on what caused your 500 score. If it's from old missed payments (more than a year ago), you'll improve faster. If you have a recent missed payment or active collections account, improvement will be slower because those recent negatives weigh more heavily. But consistent on-time payments always move the needle.

How to choose between your options

Start with a secured card if you have $200 to $500 available. The approval odds are highest, the path to graduation is clear, and the annual fee is usually reasonable. Capital One Secured, Discover Secured, and U.S. Bank Secured are all solid choices with no annual fee or low annual fees.

Choose a credit-builder card only if you don't have deposit money available or you specifically want to avoid holding money in a bank account. The monthly fees add up, so do the math: $10 per month × 12 months = $120 per year, which is more than most secured card annual fees.

Apply for a store card as a second card if you're approved for a secured card. Having two accounts in good standing builds your credit faster than one. But don't make it your only card — the credit-building effect is weaker because store cards are narrower in scope.

Frequently Asked Questions

Will applying for a card hurt my 500 score even more?

Yes, each application creates a hard inquiry that typically lowers your score by a few points. But the damage is temporary — inquiries fall off after 12 months and stop affecting your score after about 6 months. One or two applications won't derail you. Multiple applications in a short time will. Apply to one card, wait a few weeks, then try another if you're declined.

Can I get a regular unsecured card with a 500 score?

Rarely. Most mainstream banks (Chase, Bank of America, Wells Fargo) have minimum score requirements around 600 to 650 for unsecured cards. Some credit unions have lower thresholds if you're a member. But secured cards are designed for exactly this situation, so that's the realistic path forward.

What's the difference between a secured card and a credit-builder card?

A secured card gives you a real credit line backed by your deposit — you borrow money and pay it back. A credit-builder card doesn't give you a line of credit; you load money onto it yourself and the issuer reports your payments. Secured cards build credit faster and are usually cheaper over time, but they require more money upfront.

How long until I can graduate from a secured card to a regular card?

Most issuers convert secured cards to unsecured after 12 to 24 months of on-time payments. Some do it faster if your score improves significantly. Check your card's terms to see the issuer's policy. When you graduate, your deposit is returned to you.

Should I max out my secured card to build credit faster?

No. Using more than 30% of your credit limit (even on a secured card) actually hurts your score. If your limit is $500, keep your balance under $150. The goal is to show you can borrow responsibly, not to borrow as much as possible. Make small purchases, pay them off in full each month, and let the on-time payments do the work.