$500 Credit Card Limit No Deposit Bad Credit - Explained

If you have bad credit and want a $500 credit card limit without making a deposit, you may be able to get more than $500 in available credit from an unsecured card with a higher starting limit. Some unsecured credit cards for people with bad credit offer a $700 credit limit if approved. If a $175 annual fee is deducted from that credit line, approximately $525 in credit remains available without requiring a security deposit.

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Can You Get a $500 Credit Card Limit With Bad Credit and No Deposit?

Yes. Some unsecured credit cards available to people with bad credit have starting credit limits above $500. A $700 starting credit limit, for example, can leave approximately $525 available after a $175 annual fee is deducted from the initial credit line.

This is different from a secured credit card, where you generally provide a refundable security deposit to establish or support the credit line. If you want to compare both types of cards, see our guide on how to get a $500 credit card limit with bad credit.

How a $700 Credit Limit Can Give You More Than $500 in Available Credit

When people search for a $500 credit card limit with no deposit, they may actually be looking for a card that provides at least $500 of usable credit without requiring a security deposit.

Some unsecured cards start with a $700 credit limit if you are approved. If the card charges a $175 annual fee against the initial credit line, the calculation is:

$700 credit limit - $175 annual fee = $525 in available credit

That means the stated credit limit is $700, while the amount initially available for purchases is approximately $525. The difference is important because a credit card's advertised credit limit and the amount of credit available after fees are applied are not always the same.

For more information about cards with this type of starting credit line, see our guide to credit cards with $700 credit limits.

Which Credit Cards Offer This Type of $500 No-Deposit Option?

Some unsecured cards marketed to consumers with less-than-perfect credit have starting credit limits that can provide more than $500 in available credit after applicable initial fees.

Three cards we discuss in this context are the Indigo Mastercard, Destiny Mastercard, and Milestone Mastercard. Each is an unsecured credit card, so a security deposit is not required to establish the credit line.

If you want to see these three cards together and then read our individual reviews, visit our guide to $500 credit cards with bad credit and no deposit.

$500 Credit Limit vs. $500 of Available Credit

There is an important distinction between having a $500 credit limit and having $500 available to spend when an account is first opened.

A card could have a $700 credit limit but have less than $700 available for purchases because an annual fee or other applicable charge is deducted from the credit line. In the example above, a $700 credit limit minus a $175 annual fee leaves approximately $525 available.

This is why someone searching for a $500 credit card limit may want to look at the fees as well as the stated credit limit.

Do You Need a Deposit to Get $500 of Credit?

No, not necessarily. An unsecured credit card does not require a security deposit. If you are approved for a card with a starting credit limit high enough to leave at least $500 available after applicable fees, you can have more than $500 of available credit without putting down a deposit.

A secured credit card is another option, but it generally requires a refundable security deposit. For example, a secured card that allows a $500 credit line may require a $500 deposit to establish that credit line.

If you are specifically trying to avoid a deposit, focus on unsecured credit cards and compare the starting credit limit with any fees that are charged against the account.

Ready to look at unsecured cards that may provide at least $500 in available credit without a security deposit? ➤ See $500 Credit Card Offers for Bad Credit With No Deposit

Looking for a $500 Credit Card With Bad Credit?

If your goal is to get at least $500 of available credit without making a security deposit, an unsecured card with a higher starting credit limit may be one option to consider. The important thing is to look beyond the advertised credit limit and determine how much credit will actually be available after any applicable fees.

You can also start with our how-to guide for getting a $500 credit card limit with bad credit, which explains both secured and unsecured options.

If you want to see the specific unsecured cards discussed above, our $500 credit card with bad credit and no deposit guide links to our individual Indigo, Destiny, and Milestone reviews.