What Credit Cards Are Available With a 500 Credit Score

Cards you can actually get with a 500 credit score

With a 500 credit score, you won't may have access to for standard credit cards that most people use. But you do have real options: secured credit cards, store cards, and credit-builder cards from credit unions. These cards exist specifically for people rebuilding credit, and they work differently than regular cards — you'll put down a cash deposit, pay higher interest rates, or accept lower credit limits. The deposit or limit is usually between $200 and $2,500.

The goal isn't to use these cards like a regular credit card. It's to show lenders over time that you pay on time, every time. After 6 to 12 months of on-time payments, you may move to a regular card, or your secured card may convert to an unsecured one with better terms.

Key Takeaways

• Secured credit cards require a cash deposit that becomes your credit limit, and they report to all three credit bureaus to help rebuild your score.
• Store cards from retailers like Target or Walmart have lower approval standards than bank cards and can be easier to get with a 500 score.
• Credit-builder cards from credit unions work by lending you money you've already saved, so the bank has no risk and approval is nearly automatic.
• Your interest rate will be high — typically 18% to 36% APR — so carrying a balance costs real money; paying in full each month is the strategy that works.
• Lenders look at more than your score: recent late payments, collections, or bankruptcy can block approval even with a 500 score, while a clean recent history helps.

How secured credit cards work

A secured credit card requires you to deposit cash with the card issuer. That deposit becomes your credit limit. If you deposit $500, your limit is $500. You then use the card like any other card — buy things, get a bill, pay it. The bank holds your deposit the entire time you have the card, earning interest on it (though usually a low rate).

The deposit is not a fee. It's your money sitting in an account at the bank. If you close the card or stop paying, the bank can take the deposit to cover what you owe, but otherwise it stays yours. After 6 to 18 months of on-time payments, many issuers will convert your card to a regular unsecured card and return your deposit. Some let you increase your limit by adding more deposits.

Secured cards report to Equifax, Experian, and TransUnion — all three credit bureaus — so every on-time payment builds your score. The catch is the interest rate. Most secured cards charge 18% to 24% APR. If you carry a balance, you pay interest on top of what you already owe. The strategy is to charge small amounts you can pay off in full each month, so interest never kicks in.

Examples include the Capital One Secured Mastercard, the Discover it Secured Credit Card, and the U.S. Bank Altitude Go Visa Secured Card. Each has different deposit minimums and features, so compare before applying.

Store credit cards and retail options

Retail stores issue their own credit cards with lower approval standards than banks. Target, Walmart, Amazon, and Best Buy all have store cards that approve people with scores in the 500 range. These cards work only at that store (or the store's website), so they're not useful for everyday spending, but they're often easier to get approved for than a bank card.

Store cards typically have higher interest rates than secured cards — often 20% to 30% APR — and lower credit limits, usually $300 to $1,000. But they report to the credit bureaus, so on-time payments help your score. The downside is that using them only at one store limits how much you can build credit history. If you shop at Target regularly anyway, a Target card makes sense. If you're only getting it to rebuild credit, a secured card is usually the better choice.

Some stores also offer buy now, pay later options like Affirm or Klarna, which let you split a purchase into payments without a credit check. These don't report to credit bureaus, so they don't help your score, but they're useful if you need to make a purchase and don't have the cash upfront.

Credit-builder cards from credit unions

If you belong to a credit union, ask whether they offer a credit-builder card or credit-builder loan. These work by having the credit union lend you money that you've already saved. You deposit $300 to $1,000 into a savings account at the credit union. The credit union then issues you a card or loan for that same amount. You make monthly payments on the card or loan, and after you've paid it off, you get access to your savings.

The credit union has zero risk — they're lending you your own money. Because of that, approval is nearly automatic, even with a 500 score or lower. The interest rate is usually much lower than a secured card, often 8% to 12%. And because you're making monthly payments on a loan, it builds credit faster than a card does.

The catch is that you need to be a credit union member, and not all credit unions offer this product. You can find credit unions near you through CO-OP or Alliant Credit Union's locator tool. Some credit unions let you join if you live or work in their area; others are open to anyone who meets basic requirements like living in a certain state.

What lenders actually look at beyond your score

Your 500 score matters, but it's not the only thing lenders see. They also look at your credit report itself — the actual history of payments, late payments, collections, and bankruptcies. If your score is 500 because you had a bankruptcy three years ago but have paid everything on time since, you're a better bet than someone with a 500 score from recent late payments or an active collection.

Lenders also check how long it's been since your last negative mark. A late payment from six months ago is a bigger red flag than one from three years ago. Some card issuers will deny you if you have a recent late payment, even if your score has recovered. Others focus more on whether you've been stable recently.

Hard inquiries — the checks lenders do when you apply — also affect your score slightly and stay on your report for two years. Applying for multiple cards in a short time can hurt your score and make you look desperate for credit. Space applications out by at least a few weeks.

Building credit faster once you have a card

Getting the card is the first step. Using it right is what actually rebuilds your score. The most important thing is paying on time, every single time. A single late payment can drop your score 50 to 100 points. Set up automatic payments for at least the minimum, or better yet, pay the full balance each month.

Keep your balance low relative to your limit. If your limit is $500 and you charge $450, that looks risky to lenders. Aim to use less than 30% of your limit — so on a $500 card, keep your balance under $150. This is called your credit utilization ratio, and it's the second-biggest factor in your score after payment history.

Don't close the card once you've paid it off or upgraded to a better card. Closing it removes available credit from your history and can hurt your score. Keep it open and use it occasionally — a small charge every few months, paid in full — to show you're still using it responsibly.

Alternatives if you're denied

If you apply for a secured card and get denied, it usually means the issuer thinks you're too high-risk even with a deposit. This is rare but happens. Your next move is to check your credit report for errors. You can get a free report from AnnualCreditReport.com (the official site run by the three bureaus). Look for accounts you don't recognize, wrong payment dates, or balances that should be zero. Dispute errors with the bureau — this takes 30 days but can raise your score.

If your report is accurate, wait a few months and try again. Your score changes every month as old negative marks age and new positive marks accumulate. A few months of on-time payments on other accounts (like a utility bill or phone bill, if they report to bureaus) can move your score enough to get approved.

You can also try a credit union card first, since approval is easier. Or ask whether a family member with better credit will add you as an authorized user on their card. You don't have to use the card — just being listed as an authorized user can add their payment history to your report and boost your score, though this depends on the card issuer and the bureau.

Frequently Asked Questions

Will applying for a credit card hurt my 500 credit score?

Yes, but only slightly and temporarily. Each application triggers a hard inquiry, which drops your score by a few points and stays on your report for two years. The impact fades after a few months. Multiple applications in a short time hurt more than one application. Space them out by at least a few weeks if you're trying more than one card.

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

Unlikely. Most banks require a score of at least 620 for a regular card, and many want 650 or higher. A 500 score puts you in the range for secured cards, store cards, and credit union cards instead. After 6 to 12 months of on-time payments, your score should rise enough to may have access to for a regular card.

What's the difference between a secured card and a store card?

A secured card requires a cash deposit, works anywhere that card brand is accepted (like Visa or Mastercard), and usually has lower interest rates than store cards. A store card doesn't require a deposit but only works at one retailer and usually has higher interest rates. Secured cards are better for rebuilding credit broadly; store cards are better if you already shop at that store.

How long does it take to rebuild my credit with a secured card?

Most people see a 50 to 100 point increase within 6 to 12 months of on-time payments on a secured card. The exact timeline depends on what else is on your report — recent late payments or collections slow progress. After 12 to 18 months, many issuers convert your secured card to a regular card and return your deposit.

Do I have to carry a balance to build credit?

No. Paying your balance in full each month is actually better for your score and saves you money on interest. Lenders want to see you can manage credit responsibly, not that you carry debt. Charge small amounts and pay them off completely each month.