Best Credit Cards for Bad Credit

The best credit card for a 500 credit score is the Discover it® Secured Credit Card. It has a $0 annual fee and rewards cardholders with 2% cash back at gas stations and restaurants (up to $1,000 spent each quarter combined), and 1% back on all other 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 good approval odds and monthly reporting to the major credit bureaus.

Best Credit Cards for a 500 Credit Score

When used responsibly, the right credit card for a 500 credit score can put you on the path to good credit. The key is to pay your bill on time every month.

For more tips, check out our guide on how to rebuild bad credit. You can also get personalized credit-improvement advice and credit card suggestions with a free WalletHub account.

There is no minimum credit score needed to get a credit card. Some credit card companies don’t even check applicants’ credit history, so it’s certainly possible to get a credit card even if you have a very low credit score or no credit score at all.

But there is a difference between getting approved for a credit card in general and getting one of the better offers.

The credit score needed for credit card approval ultimately depends on which specific card you want to get. Most of the time, credit card companies have a credit score tier they’re looking for, and applicants will need a score in the required tier (or higher) for a good chance of approval. The tiers are bad, fair, good and excellent.

The thing is, credit cards require scores that are a bit higher than the traditional minimum for each tier in the overall credit score range, according to WalletHub’s research. So for each credit tier, you can see a “traditional” score range and a “WalletHub recommended” score range below.

Here is the credit score needed for a credit card at each level:

 One way to estimate your credit card approval odds is to check for pre-approval. Many major issuers will allow you to check for free. It won’t hurt your credit score. And you’ll get a pretty good idea of your chances. Plus, if you’re not sure what your score is yet, you can check your latest credit score for free on WalletHub. You’ll also get personalized credit card recommendations with high approval odds.

Just remember that having a qualifying credit score does not guarantee credit card approval. The credit card application process takes many other factors into account. Payment history, existing debt and income play big roles, too.

The easiest credit cards to get approved for with no credit or bad credit are secured credit cards. These cards have annual fees as low as $0 and report monthly to the 3 major credit bureaus. Some even give rewards of 1% or more. To help people with no credit or bad credit maximize their odds of approval for a credit card, WalletHub’s editors compared the approval requirements for more than 1,500 credit card offers, along with their fees, rates and rewards.

Easiest Credit Cards to Get Approved For

This content is not provided or commissioned by any issuer. Opinions expressed here are the author’s alone, not those of an issuer, and have not been reviewed, approved or otherwise endorsed by an issuer. Please keep in mind that while some offers may come from WalletHub advertising partners, sponsorship status played no role in card selection. 

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The best credit card that can offer you a $1,000 credit limit with bad credit is the Bank of America® Customized Cash Rewards Secured Credit Card ($200+ limit). However, as this is a secured credit card, you need to put down a $1,000 security deposit, which will act as your credit line. Without putting down a deposit, it will be difficult to get a credit card with such a high credit limit when you have bad credit. Most credit cards for bad credit start out with low limits in the $200-$300 range.

Ways to get a $1,000 credit limit with bad credit:

• Get an unsecured credit card: An unsecured credit card for bad credit could give you a $1,000 credit limit, but it depends on just how damaged your credit is. Your income, debts and overall ability to make credit card payments are also crucial factors that determine your credit limit. Like most unsecured cards for bad credit, the Surge Credit Card 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 - $125. Many unsecured credit cards for bad credit come with high annual, one-time, and monthly fees – it’s rarely worth all the money you spend just to keep the account open.
• Get a secured credit card: Unlike unsecured cards for bad credit, most secured cards, including Bank of America Custom Cash Secured Card and the U.S. Bank Cash+® Visa® Secured Card, have $0 annual fees. And the deposit is fully refundable when you close the account in good standing. As you build good credit, you may be eligible for a credit limit increase without an additional deposit. In some cases, you’ll be allowed to graduate to an unsecured card with better terms and no fees.
• Get a store card: Some store credit cards, such as the Fingerhut Credit Card, will start out with a low credit limit but could increase your credit limit after you make a few on-time, above-minimum payments. You can get approved for a Fingerhut Credit Card with bad credit, and it has a $0 annual fee.
• Alternatives: Another way to get a $1,000 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.

Ultimately, if you’re not in need of emergency money, and your focus is more on building your credit, get a secured credit card. Your limit on a secured card is as high as your initial deposit in most cases. Alternatively, you can also look at ways to increase your credit limit after you get approved for a card. After several months of responsible credit card use, you can request a higher credit limit yourself, or you might even be offered an automatic increase by the issuer.

The lowest credit score is 300. The most commonly used credit-scoring models from FICO and VantageScore range from a low of 300 to a high of 850.

It’s easy to get confused about what the lowest credit score is. It would make more sense to start at 0, for one thing. Credit scores haven’t always used 300 as the lowest score, either. Some older models, along with some niche, industry-specific scores still used today, use 0, 250 or 300 as the lowest credit score possible. But pretty much any score most people will see nowadays uses the standard 300-850 scale.

It is very rare for anyone’s credit score to drop anywhere close to the absolute lowest credit score possible. Around 0.1% of people have a credit score between 300 and 350. The average credit score in the U.S. is actually verging on “good” credit. And even if you drop into the bad credit score range, you aren’t alone. Close to 4.5% of consumers have bad or very bad credit. There are tried-and-true ways to help rebuild your credit score, too.

Finally, it’s important to point out that not everyone has a credit score. Having no score does not mean you have the lowest credit score possible, however. It just means you don’t have enough credit history to generate a score. The Consumer Financial Protection Bureau found that around 26 million consumers were considered “credit-invisible,” as of 2015. An additional 19 million had a credit record, but were considered “unscoreable” due to either too little credit history or a lack of recent credit history. The credit bureaus are actively working to reduce the number of people without a credit score, either by adding non-traditional data to credit reports or using machine learning to get more out of limited information.

Yes, a poor person can get a credit card. While credit cards do require some income for approval, people with low income can qualify for a credit card as long as they are at least 18 years old. Some of the best cards for applicants with low-income are secured cards, which require an up-front security deposit that makes them easy to get approved for, even if you have poor credit or limited credit history.

Best Credit Cards for Low Income Applicants

Credit card issuers require applicants to list their annual income on the application. This allows the issuer to decide what kind of credit limit and monthly payment the person can afford. Income on a card application can include money from a part-time job, retirement pensions, or public assistance benefits, for example. If you’re 21 years or older, you can include shared household income.

There is no minimum income requirement for getting a credit card, but a person with low income may not qualify for as many card options as someone with a lot of annual income, and your credit limit may be low. Signing up for a free WalletHub account will make the search easier, with personalized card recommendations based on your financial situation.

No, it is not impossible to get a credit card with bad credit. You can get a secured credit card with bad credit, as well as certain unsecured credit cards intended specifically for people with bad credit scores. Some credit cards won’t even check your credit history when you apply.

Popular Credit Card Options for People with Bad Credit

With limited options, finding a solid credit card can be frustrating when you have bad credit. However, the benefits of having a card will usually outweigh the stress of the search. For example, picking the right credit card and using a credit card responsibly is one of the most effective ways to rebuild your credit.

3 Steps to Getting a Credit Card with Bad Credit

1. Find the right card. When searching for a credit card, it is always wise to compare the available offers before committing to a specific card. When you have bad credit, shopping around is even more important because the number of cards you’ll be able to qualify for is limited. You can get personalized recommendations and easily compare credit cards for bad credit on WalletHub.
2. Complete an application. Once you select the credit card you want, you need to complete an application. The quickest way to apply for a card is online. If you’re applying for a secured card, you may need to pay your refundable deposit when you apply, or within a few weeks after you’re approved.
3. Wait for a decision. Applying online will usually lead to an instant decision. If you don’t get an immediate decision, most issuers will let you know within 7-10 business days. The decision can’t take longer than 30 days. If your application is denied, wait 6 months to a year before applying for another card to avoid damaging your credit further.

Whichever card you decide to get, it is crucial that you pay your credit card bill on time and ideally in full each month. Late payments will hurt your credit score, and credit card balances carried from month to month can be very expensive. Check WalletHub’s guide on paying credit card bills for tips to keep your accounts in good standing.