The best way to get a $500 credit card limit with bad credit is to open a secured credit card account and put down a $500 security deposit. A secured card’s credit limit is equal to the amount of the deposit. Most secured cards require a refundable deposit of at least $200-$300. A bad credit score will make it difficult to get a $500 credit card limit without placing a $500 deposit.
An unsecured credit card for bad credit could give you a $500 credit limit, but it depends on just how damaged your credit is. Like most unsecured cards for bad credit, the Credit One Platinum Visa starts with a $300+ credit limit. But it’s not all yours to spend right away, as you’ll owe an annual fee of up to $75 the first year (up to $99 after). Many other unsecured credit cards for bad credit charge one-time processing fees and monthly maintenance fees, which further reduce your spending power.
But most secured cards, including Discover it Secured and the Capital One Secured Mastercard, don’t charge an annual fee. And the deposit is fully refundable when you close the account in good standing. As you build good credit, you may eligible for a credit limit increase without an additional deposit. In some cases, you’ll be allowed to transition to an unsecured card with better terms and no fees.
Another way to get a $500 credit card limit with bad credit is to become an authorized user. When you sign on as an authorized user on someone else’s credit card, you’ll share the account’s credit limit while you rebuild your credit history. Missed payments on the account can have a negative effect on the credit scores of both the primary cardholder and the authorized user. But as an authorized user, you have the right to dispute negative information to get it removed from your credit report.
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