The best credit card for a 500 credit score is Discover it® Secured Credit Card because it has a $0 annual fee and rewards cardholders with 1 - 2% cash back on purchases. Secured cards generally provide the best opportunity for someone with a credit score of 500 (or below) to rebuild their credit standing, thanks to high approval odds and monthly reporting to the major credit bureaus.
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.… read full answer
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 Bank® Platinum Visa® for Rebuilding Credit starts with a $300+ credit limit. But it’s not all yours to spend right away, as you’ll owe an annual fee of $75 intro 1st yr, $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 Credit Card and the Secured Mastercard® from Capital One, 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.
The best credit card for a 550 credit score is the OpenSky® Secured Visa® Credit Card. There’s no credit check when you apply, so approval is almost guaranteed. You just need $200 for a refundable security deposit and enough income to make monthly payments. This card also reports to all three major credit bureaus every month, which is your ticket to a better credit score. And a $35 annual fee isn’t too much to pay for that.… read full answer
The Discover it® Secured Credit Cardis another great 550 credit score credit card. It has a $0 annual fee and actually rewards you for making purchases. A 550 credit score won’t keep you from getting approved either. But a pending bankruptcy will.
Those aren’t the only credit cards you can get with a 550 credit score. In fact, there are two kinds of credit cards for people at that credit level: Secured credit cards and unsecured credit cards for bad credit. A 550 credit score is within the bad credit range, unfortunately. Bad credit goes from 300 to 639. But picking the right 550 credit score credit card and using it responsibly could help you improve your score to “fair” territory within 12-18 months.
Before applying for a card, make sure to check out its terms and conditions, or a FAQ page if there is one, just to make sure you fit the criteria for eligibility. You can also try getting pre-approved for a credit card. It won’t hurt your credit, and it will give you a good idea of your odds if you decide to apply.
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