What credit cards are available at a 500 credit score
At a 500 credit score, you will not may have access to for standard rewards cards or cards from major issuers like Chase or American Express. Instead, you have access to secured credit cards and a smaller set of unsecured cards designed for people rebuilding credit. Secured cards require a cash deposit that becomes your credit limit — typically $200 to $2,500 — and they report to all three credit bureaus, which means on-time payments will raise your score over time.
Unsecured cards for this score range exist but come with higher interest rates (often 24% to 36% APR) and annual fees of $25 to $99. The trade-off is that you do not need to put down a deposit. Both types are real credit products, not prepaid cards, so they build your credit history when you use them responsibly.
Your choice between secured and unsecured depends on whether you have cash available to deposit and how quickly you want to rebuild. Secured cards are usually the faster path because the deposit removes the lender's risk, making approval more certain and the terms more favorable.
Key Takeaways
- Secured credit cards require a cash deposit but offer the most reliable path to approval and the lowest interest rates available at a 500 score.
- Unsecured cards for this score range exist but typically charge 24% to 36% APR plus annual fees, making them more expensive if you carry a balance.
- Your credit limit on a secured card equals your deposit, so a $500 deposit gives you a $500 limit — the deposit stays in a bank account and is not spent.
- On-time payments on either type of card will raise your score within 6 to 12 months if you keep your balance below 30% of your limit.
- After 12 to 24 months of on-time payments, many secured card issuers will convert your account to an unsecured card and return your deposit.
How secured cards work and why they are your strongest option
A secured card works like this: you deposit money into a savings account held by the card issuer, and that amount becomes your credit limit. You then use the card like any other credit card — swipe it, pay the bill each month, and the issuer reports your activity to Equifax, Experian, and TransUnion. The deposit sits untouched in the bank account; you are not spending it. If you stop paying your bill, the issuer can take the deposit to cover what you owe, which is why they approve people with 500 scores.
The interest rate on a secured card is typically 18% to 24% APR — lower than unsecured cards for this score range — and many have no annual fee or a small one ($0 to $49). Because the issuer's risk is minimal, they can afford to offer better terms. This makes secured cards the most cost-effective choice if you plan to carry a balance while rebuilding.
The real value is the credit-building. Each on-time payment is reported to all three bureaus. After 12 to 24 months of consistent payments, many issuers will automatically convert your account to a standard unsecured card, return your deposit, and you keep the card with a higher limit. This is how secured cards function as a bridge to mainstream credit.
Unsecured cards for 500 credit scores and when they make sense
Unsecured cards — cards that do not require a deposit — do exist for people with 500 scores, but the terms are less favorable. Interest rates typically range from 24% to 36% APR, and annual fees run $25 to $99. Some cards combine both: a $49 annual fee plus 28% APR. These cards are real credit products and will report to the bureaus, so they do build your history.
An unsecured card makes sense only if you do not have cash to deposit for a secured card, or if you are confident you will pay off your balance in full each month. If you carry a balance, the higher APR means you will pay significantly more in interest than you would on a secured card. For example, a $1,000 balance at 28% APR costs you $280 per year in interest alone; the same balance on a secured card at 20% APR costs $200.
The approval odds are also lower. Unsecured cards at this score range are riskier for issuers, so they may decline your process or approve you for a very low limit ($300 to $500). Secured cards have higher approval rates because the deposit removes the risk.
Comparing the major secured card options
| Card | Deposit Range | APR | Annual Fee | Conversion Timeline |
|---|---|---|---|---|
| Capital One Secured Mastercard | $200–$2,500 | 20.99% | $0 | 6+ months |
| Discover it Secured Credit Card | $200–$2,500 | 20.99% | $0 | 6+ months |
| OpenSky Secured Visa | $200–$3,000 | 20.99% | $35 | 12+ months |
| Chime Credit Builder Visa | $200–$1,000 | 20.99% | $0 | 6+ months |
Capital One and Discover are the most common secured cards because they have no annual fee and both report to all three bureaus. Both cards also offer cash back on purchases — Capital One gives 1% on all purchases, and Discover gives 2% on dining and gas, 1% on everything else — which is unusual for secured cards at this score range. Approval is nearly certain if you have the deposit.
OpenSky does not require a credit check, which appeals to people with very recent negative marks, but the $35 annual fee and longer conversion timeline make it less attractive if other options are open to you. Chime is designed for people with Chime bank accounts and offers the lowest deposit minimum, but conversion to unsecured status takes longer.
Before you explore, check the issuer's website for the current terms — APR and fees can change. Also confirm that the card reports to all three bureaus; some older secured cards report to only one or two, which slows your score recovery.
Building your score while using a secured card
Getting approved for a secured card is only the first step. Your score will rise fastest if you follow three rules: keep your balance below 30% of your limit, pay on time every month, and do not close the card once it converts to unsecured.
If your limit is $500, try to keep your balance at $150 or less. This shows lenders you are not maxed out and can manage credit responsibly. Paying in full each month is ideal, but if you cannot, at least make the minimum payment on time. Late payments will damage your score and may trigger a higher APR or even account closure.
After 6 to 24 months of on-time payments — the timeline varies by issuer — you may receive an offer to convert to an unsecured card. Accept it. Your deposit will be returned, your limit may increase, and the card will remain on your credit report, which helps your score. Closing the account would hurt your score because it reduces your available credit and shortens your credit history.
What to avoid and common mistakes
Do not explore for multiple secured cards at once. Each process triggers a hard inquiry on your credit report, and multiple inquiries in a short time can lower your score by 5 to 10 points. explore for one card, wait 3 to 6 months, and then explore for another if you need a higher total credit limit.
Do not confuse a secured card with a prepaid card. A prepaid card is not a credit product — it does not report to the bureaus and will not build your credit. Secured cards are real credit cards that happen to require a deposit. Check the issuer's website to confirm the card reports to Equifax, Experian, and TransUnion.
Do not carry a balance you cannot afford to pay down. A 20% APR on a $1,000 balance costs $200 per year. If you are only making minimum payments, most of your payment goes to interest, not principal, and your balance shrinks slowly. Use the card for small purchases you can pay off in full, or use it sparingly while you rebuild.
Do not close the card once it converts. Closing it removes available credit from your report and can lower your score by 10 to 50 points, depending on how much of your total credit limit it represented. Keep it open and use it occasionally — a small purchase every few months, paid in full — to show activity.
Timeline and expectations for score recovery
A 500 credit score typically reflects missed payments, high balances, or collections accounts within the past 2 to 3 years. A secured card alone will not erase those marks, but it will add positive payment history that gradually outweighs the negative.
Most people see a 20 to 50 point increase within 3 to 6 months of on-time payments on a secured card, assuming they keep their balance low. After 12 months, the increase is often 50 to 100 points. After 24 months of perfect payment history, you may reach 600 to 650, depending on what else is on your report.
The speed of recovery depends on what caused the 500 score. If it was a single missed payment or high balance, recovery is faster. If it includes collections, charge-offs, or a bankruptcy, recovery takes longer — sometimes 3 to 5 years — because those marks stay on your report for 7 years. A secured card helps, but it cannot remove them.
Frequently Asked Questions
Can I get a regular credit card with a 500 score without a deposit?
Unsecured cards exist for 500 scores, but approval is not certain and the terms are worse — typically 24% to 36% APR plus annual fees. A secured card is a more reliable path because the deposit removes the issuer's risk. If you have no cash to deposit, an unsecured card is your only option, but expect a lower limit and higher costs.
What happens to my deposit if I miss a payment?
The issuer can use your deposit to cover unpaid balances, but they typically will not do so when ready. Most will charge you a late fee and a higher APR first. If you fall far behind, they may close the account and explore the deposit to what you owe. Missing payments also damages your credit score, so avoid this at all costs.
How long does it take for a secured card to convert to unsecured?
Conversion timelines vary by issuer, typically 6 to 24 months. Capital One and Discover often convert after 6 months of on-time payments. OpenSky takes longer, sometimes 12 to 18 months. Check the issuer's website for their specific policy. Conversion is not automatic — the issuer decides based on your payment history and current score.
Will a secured card hurt my score when I first open it?
Yes, slightly. The hard inquiry and new account will lower your score by 5 to 10 points initially. But within a few months, on-time payments will more than make up for this dip. The long-term benefit of building positive payment history far outweighs the short-term hit.
Can I use a secured card to pay bills and build credit faster?
Only if your bills accept credit card payments. Most utilities, rent, and insurance do not. You can use a secured card for groceries, gas, and other everyday purchases, then pay the bill in full. This builds credit just as effectively as paying bills directly, and it keeps your balance low.