If you are wondering if there are credit cards for people with a 500 credit score, the answer is yes. However, it may be more difficult to find an unsecured credit card than for those with a higher score. This is because people with bad credit are considered to be a higher risk by lenders. Don’t worry though – there are still options available!
In this blog post, we will discuss the different types of credit cards that are available for people with a 500 credit score.
Table of Content
- What Is an Unsecured Credit Card?
- Unsecured Cards for People with a 500 or less Credit Score
- Best Secured Cards for People with a 500 Credit Score
- Best Prepaid Cards for People with a Credit Score with 500
Anyone who’s ever applied for a credit card knows that a good credit score is essential to get approved. But what about those with a less-than-perfect score? Are there any options out there for them?
The answer is yes – although the selection may be more limited than for those with a higher score. Several factors go into determining one’s credit score, including payment history, outstanding debt, and length of credit history. A lower score can be the result of missing payments, defaulting on loans, or having too many “hard inquiries” on your credit report.
If you’re looking for a credit card but have a low score, there are still some options available to you. There are cards specifically designed for people with bad credit, and while they may come with higher interest rates and fees, they can help you rebuild your credit if used responsibly.
What Is an Unsecured Credit Card?
An unsecured credit card is a type of credit card that is not backed by any collateral. In other words, it is not tied to a savings account or another piece of property such as a car or house. An unsecured credit card is also sometimes called a signature credit card.
The biggest advantage of an unsecured credit card is that anyone can qualify for one. That’s because there’s no collateral required to get approved.
Another advantage is that an unsecured credit card can help you rebuild your credit if you have bad credit or no credit history. That’s because your payments are reported to the three major credit bureaus.
There are some disadvantages to an unsecured credit card, too. One is that you may need good or excellent credit to qualify. Another is that you could wind up with a high-interest rate and annual fee if you don’t have good credit.
Choosing the right unsecured credit card depends on your financial goals and needs. If you have bad credit, look for a card with no annual fee and a low-interest rate. If you have good or excellent credit, you may be able to qualify for a rewards credit card with no annual fee and a 0% intro APR.
What Credit Cards Are Available to People with Bad Credit?
Credit cards are a vital part of modern life, but they can also be a major source of financial stress. For people with bad credit, finding a card that meets their needs can be an especially daunting task. However, there are several options available for people in this situation.
One option is to get a secured credit card. With this type of card, you put down a deposit that serves as collateral for the card. This deposit is usually equal to your credit limit, so it provides the lender with some security against losses. Secured cards often have relatively high-interest rates and fees, but they can be a good option for people who are working to improve their credit score.
Another option is to get a co-signed credit card. This is where someone with good credit agrees to be responsible for your debt if you default on the card. Co-signing can be a good way to build your credit score, but it’s important to make sure that you make your payments on time, as late payments will impact both your score and your co-signer score.
There are also several different credit cards available for people with bad credit. These cards typically have high-interest rates and fees, but they can help you rebuild your credit if used responsibly.
What Should You Do If Your Credit Card Application Is Rejected?
Being rejected for a credit card can be frustrating, but it’s important to remember that there are other options available. If your application is rejected, the first thing you should do is check your credit score. If your score is low, you may need to take some time to improve it before reapplying.
You can also try applying for a secured credit card, which requires a deposit that acts as collateral. Once you’ve been approved for a card, it’s important to use it responsibly by making timely payments and maintaining a good credit history. By following these steps, you can increase your chances of being approved for a credit card in the future.
How to Increase Your Credit Score Before Applying for a Credit Card
If you’re planning on applying for a credit card, there are a few things you can do to help increase your chances of being approved. One of the most important factors in determining your creditworthiness is your credit score. This three-digit number is used by lenders to assess your riskiness as a borrower, and a higher score usually means better terms and rates. While there’s no magic number that guarantees approval, there are some steps you can take to improve your odds.
First, make sure you’re on the electoral roll at your current address. This may seem like an odd requirement, but lenders use this as a way to verify your identity. If you’re not registered, it’s worth taking the time to do so.
Another thing you can do is check your credit report for any errors or outdated information. If there’s anything inaccurate on your report, dispute it with the credit bureau so that it can be corrected.
Finally, consider using a credit builder product like a secured credit card. These products help build up your history of responsible borrowing, which can be helpful if you don’t have much of a credit history already.
Best Unsecured Cards for People with a 500 or less Credit Score
If you’re looking for an unsecured credit card with a 500 or less credit score, there are a few things to keep in mind.
First, your credit limit will likely be low, so you’ll need to use your card judiciously.
Second, you’ll probably have a high-interest rate, so it’s important to pay off your balance in full each month.
Finally, you may need to provide a security deposit, which can be used to offset any charges you may incur if you default on your payments.
With that said, here are some of the best-unsecured cards for people with a ≤500 credit score:
#1. PREMIER Bankcard Mastercard Credit Card
The PREMIER Bankcard Mastercard is an unsecured credit card for those who want to establish or repair their credit. The cost, on the other hand, of not putting down a security deposit is enormous.
The annual fee for this card is $50-$125 based on creditworthiness for the first year, then $49 annually. Some of the benefits of this card include that card activity is reported to credit agencies and free FICO Score access.
However, some of the drawbacks of the card include a 3% foreign transaction fee, a no rewards program, and an extremely high APR.
Additionally, if you want to increase your credit limit there is a costly fee associated with that as well. For people with less than a 500 credit score, this may be one of the best-unsecured cards available but it comes at a high cost.
# 2. PREMIER Bankcard Grey Credit Card
The Premier Bankcard Grey Credit Card is marketed as a card for people with less than perfect credit. There is no security deposit required, which can be helpful if you don’t have a lot of money to put down upfront.
However, this card comes with several fees that can add up quickly, including an annual fee, a monthly service fee, and a fee for every credit limit increase.
In addition, the interest rate on this card is a whopping 36%, so carrying a balance will be very expensive. While this card can help people build credit by maintaining a positive payment history, the fees and high-interest rates make it a costly option. For people with bad credit, there are other credit cards available that have fewer fees and a lower interest rate.
Overall, this card is best avoided unless you are sure you can pay your balance in full every month.
#3. Surge Mastercard
If you have a credit score of 500 or less, it can be tough to find a good credit card. But don’t despair – the Surge Mastercard® Credit Card is here to help. This card is designed for people who need to establish or enhance their credit score, and it comes with plenty of great benefits.
For starters, you can get up to $1,000 in credit, which doubles to $2,000 after you make your first six monthly payments on time. Plus, you’ll get free access to your Vantage 3.0 score from Experian – one of the three major credit bureaus.
And if that’s not enough, the Surge Mastercard® Credit Card also comes with a fast and easy application process, plus Mastercard Zero Fraud Liability Protection.
So if you’re looking for the best credit card for people with a less than 500 credit score, look no further than the Surge Mastercard® Credit Card.
Best Secured Cards for People with a 500 Credit Score
A secured credit card is one of the best options for people with a 500 credit score. This type of credit card requires a cash deposit that acts as collateral, which reduces the risk to the lender and makes it more available to applicants with low credit scores.
A secured credit card can help build your credit history and improve your credit score over time. When you use a secured card responsibly and make all of your payments on time, you can eventually qualify for an unsecured card with better terms and a higher credit limit.
Here are a few of the best-secured credit cards for people with a 500 credit score:
- PREMIER Bankcard Secured Credit Card
- Secured Sable ONE Credit Card
- Surge Secured Mastercard
Each of these cards requires a deposit, but they all have different features that can be beneficial for people with bad credit. I will discuss each card in more detail below.
#4. PREMIER Bankcard Secured Credit Card
For people with a credit score of 500, the Premier Bankcard Secured Credit Card is one of the best-secured cards available. The card has a $200 security deposit and an annual fee of $50. APR for purchases is 19.9% and for cash advances, it’s 19.9%, plus there’s a 3% foreign currency transaction fee.
Late payment comes with a fee of up to $39. As soon as your Credit Account has been open for 13 months, you’re eligible for consideration of a credit limit increase, though there is a $25 fee for this service.
Despite the high fees, the Premier Bankcard Secured Credit Card is still a good option for people with poor credit who are looking to improve their credit score.
After making timely payments for 13 months, you can transition to an unsecured credit card. This is a great way to rebuild your credit history and improve your credit score over time.
#5. Secured Sable ONE Credit Card
If you’re looking for a credit card with a 500 credit score, the Sable ONE Credit Card is a great option. This card offers a high rewards rate of 2% cashback on everyday purchases at Amazon, Uber, Uber Eats, Whole Foods, Netflix, Spotify, and more! Plus, you’ll earn 1% cashback on all other purchases.
There’s no membership fee, and the regular APR is low. You can qualify for this card even if you have a limited or no credit history.
The only downside is that there’s no rewards bonus, and there’s a foreign fee. However, overall this is still an excellent choice for people with bad credit.
#6. Surge Secured Mastercard
If you have a 500 credit score, you may be wondering what kind of credit card you can qualify for. While you may not be able to get the best rewards card or the lowest interest rate, there are still some good options out there for you. One option is the Surge Secured Mastercard.
This card offers pre-qualification with no impact on your credit score, and it also reports to the three major credit bureaus. Plus, you can get up to $1,000 in credit limit, which doubles to $2,000 after your first six-monthly minimum payments.
Another great feature of this card is that it comes with Mastercard Zero Fraud Liability Protection, so you won’t be held responsible for any unauthorized charges.
So if you’re looking for a good secured credit card option with a 500 credit score, the Surge Secured Mastercard is definitely worth considering.
The Best Prepaid Cards for People with a Credit Score with 500
There are many people with a credit score of 500 who find it difficult to get credit cards. If you have a credit score of 500, you may be able to get a secured credit card or an unsecured credit card.
However, if you don’t want a credit card, a prepaid card can be a good solution. A prepaid card is a great way to build your credit history and improve your credit score. You can use a prepaid card to make purchases and pay bills.
When you use a prepaid card, you will not be able to spend more than the amount of money that you have on the card. This can help you stay within your budget and avoid debt.
A prepaid card can also help you establish a good payment history, which is important for your credit score. If you are looking for a Prepaid Visa Card or MasterCard, there are many options available.
You can choose a card with no fees, or you can choose a card with rewards. Some cards offer cashback on purchases. Choose the best Prepaid Visa Card or MasterCard for your needs and start building your credit today!
Here are some of the best-prepaid cards
#7. Brinks Prepaid Mastercard
The Brink’s Prepaid Mastercard is one of the best prepaid cards for people with a credit score of 500 because of its pay-as-you-go option and $10 deficit cushion.
Other features include 1X points on signature purchase transactions, a nominal purchase transaction fee for signature and PIN transactions, and a reload fee of up to $3.95. The monthly fee is $9.95 (depending on the plan option).
The only downside is the long list of fees which makes the pay-as-you-go option expensive. Overall, the Brink’s Prepaid Mastercard is a great choice for people with bad credit scores who want to avoid the high fees associated with other prepaid cards.
Greenlight – Debit Card For Kids
Greenlight Debit Card for Kids is a unique debit card that can be used by kids and teens. There are many pros to having this debit card. For one, it has no cost other than the monthly plan fee.
Additionally, Greenlight Max plan’s account monitoring, purchase protection, and cellphone protection benefits are especially helpful for kids and teens.
Also, 1 percent cash back on spending and 2 percent monthly compounded Savings Boost rewards is a great perks. Another great thing about this debit card is that it doesn’t require creating a new checking or savings account. The only downside to having this card is that $4.99 to $9.98 monthly plan fees can be more expensive.
Additionally, money transfers, spending controls, and investment actions are tied to the primary account holder, which requires frequently managing a mobile app. Overall, the pros of this debit card outweigh the cons.
Therefore, it is a great option for kids and teens who are looking for a unique debit card option with many great features.
What Are the Important Factors to Consider When Picking a Credit Card?
With so many different credit cards available, it can be hard to know which one is right for you. Here are a few factors to consider when making your choice:
Your credit score: If you have a good credit score, you’ll likely be able to qualify for a card with a low-interest rate and attractive rewards program. If your credit score is less than perfect, you may still be able to qualify for a card, but it will likely have a higher interest rate and fewer perks.
Your spending habits: Do you tend to carry a balance from month to month, or do you pay off your balance in full each month? If you carry a balance, you’ll want to look for a card with a low-interest rate. If you pay off your balance each month, you may be more interested in a card that offers rewards.
The fees: Some cards charge an annual fee, while others charge foreign transaction fees or other fees. Make sure you understand all the fees associated with the card before you apply.
Customer service: If you’re likely to need customer service, find out what the issuer’s customer service reputation is like before you apply. You don’t want to be stuck with a card from a company that’s difficult to work with.
Now that you know what to look for in a credit card, you can start your search for the perfect card for your needs. Just remember to keep these factors in mind as you compare your options.
In conclusion, there are a few great credit cards for people with a credit score of 500. The best option for you will depend on your spending habits and the fees you’re willing to pay. Just remember to do your research before you apply so that you can find the card that’s right for you.
Thanks for reading!
Do you have a credit score of 500? What credit card have you found to be the best for your needs? Let us know in the comments below.
If you’re looking for more information on credit cards, be sure to check out our other blog posts on the subject. You can find them all here. Thanks for reading!
Frequently Asked Questions
Below are a few frequently asked questions about credit cards for people with a 500 credit score.
What credit card accepts a 500 credit score?
The best credit card for someone with a 500 credit score is likely one that has a low-interest rate and no annual fee. Some good options to consider include the Secured Sable ONE Credit Card, PREMIER Bankcard® Secured Credit Card. Make sure to do your research before you apply so that you can find the card that’s right for you.
Can I get a credit card with a 500 credit score?
Yes, there are several credit cards available for people with a 500 credit score. However, the best option for you will likely depend on your spending habits and the fees you’re willing to pay. Just remember to do your research before you apply so that you can find the card that’s right for you.
How can I get a credit card with bad credit?
For most people, the best way to improve your credit score is by paying down your bills and improving your payment history. However, if you’re unable to do that because of poor or no credit history, it may be worthwhile to apply for a secured credit card. A secured card will allow you to build up good credit while minimizing your risk of defaulting on the loan.
Why is my credit score under 599?
Your credit score may be lower than the average because you’ve applied for new accounts or opened a large number of credit cards in a short period of time. If you have recently made too many inquiries, your scores will reflect this activity and drop as soon as new inquiries are reported to the three major credit bureaus. If you suspect that there is something wrong with your application, it’s best to contact each bureau and let them know that you’ve corrected the issue before re-applying.
What is a credit score under 600?
A credit score under 600 means that you are at least two years away from being able to qualify for a mortgage with the best available rates and terms. Additionally, most lenders will not grant any kind of loan to anyone with a credit score below 600.
- As a personal finance and credit cards expert, I provide valuable insights and advice on budgeting, saving, investing, and debt management. I am also an expert on credit card rewards programs and help readers make informed decisions about which cards are right for them. My goal is to help people improve their financial literacy and make better financial choices.
- Answers2023.01.25Can You Use a Barnes & Noble MasterCard Credit Card Anywhere?
- Barclays bank2023.01.25Barnes and Noble Credit Card (2023) Review: Is It Right For You?
- Credit Cards 1012023.01.21Which Travel Insurance Option is Best for You: Credit Card or Separate?
- Chase Bank2023.01.20What Credit Score Do I Need for the Chase Ink Business Unlimited Card?