How Do I Get a $500 Credit Card Limit With Bad Credit?

You can get a $500 credit card limit with bad credit through either an unsecured credit card that provides enough initial credit to leave you with at least $500 available, or a secured credit card backed by a refundable security deposit. Some unsecured credit cards for people with bad credit start with credit limits of $700 or more, while secured credit cards can allow you to establish a $500 credit line by making a $500 security deposit.

For example, some unsecured credit cards start with a $700 credit limit. If a $175 first-year annual fee is deducted from that initial credit line, approximately $525 in credit remains available. This provides more than $500 in available credit without requiring the cardholder to put down a $500 security deposit.

A secured credit card works differently. The amount of your refundable security deposit generally determines your starting credit line. If a secured card allows a $500 credit line, you may be able to establish that limit by providing a $500 security deposit. The deposit is not a payment toward your balance; it secures the credit line.

Your approval and starting credit limit depend on the card issuer and the individual application. No credit card can guarantee that every applicant with bad credit will receive a $500 limit. However, looking at both unsecured cards with higher starting limits and secured cards with $500 credit-line options gives you two ways to pursue the amount of credit you are looking for.

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Can You Get a $500 Credit Limit With Bad Credit Without a Deposit?

Yes. Some unsecured credit cards available to consumers with poor or fair credit have starting credit limits above $500. A card with a $700 starting limit, for example, can potentially leave more than $500 available after an initial annual fee is deducted from the credit line.

The Indigo^® Mastercard^® for Less than Perfect Credit, Destiny Mastercard^®, and Milestone^® Mastercard^® are examples of unsecured cards with a $700 minimum credit limit. These cards have fees, so the amount actually available to use can be lower than the stated credit limit.

With a $700 initial credit limit and a $175 first-year annual fee, approximately $525 would remain available. That is important when comparing cards because the advertised credit limit and the amount of credit initially available for purchases are not always the same thing.

These cards also offer pre-qualification, allowing applicants to check whether they may qualify without a hard inquiry affecting their credit score.

For more information about these cards, see our individual reviews before deciding whether one fits your situation.

Can a Secured Credit Card Give You a $500 Credit Limit?

Yes. A secured credit card can provide a $500 credit limit when the card allows that credit-line amount and you provide a $500 refundable security deposit.

Secured cards are different from unsecured cards because the security deposit supports the credit line. If you deposit $500 for a card that permits a $500 credit line, the card can provide $500 in available credit while the deposit remains with the issuer according to the card's terms.

Several secured cards offer credit lines that include $500. For example, the opensky^® Plus Secured Visa^® Credit Card offers credit lines starting at $300, while the Merrick Bank Secured Credit Card allows an initial deposit and corresponding credit line starting at $200. Both offer credit-line ranges that include $500.

You can see additional secured credit card options and get more information on our secured credit cards page.

What Is the Difference Between a $500 Unsecured and Secured Credit Limit?

The main difference is where the credit line comes from. With an unsecured credit card, the issuer extends the credit without requiring a security deposit. With a secured credit card, your refundable security deposit generally establishes or supports the credit line.

If your goal is simply to have $500 of available credit, either type of card may accomplish that goal. The costs, eligibility requirements, fees, and other terms can be different, however, so the $500 credit limit itself should not be the only factor you consider.

Can I Get More Than a $500 Credit Limit With Bad Credit?

Yes. Some credit cards for people with bad credit start with credit limits higher than $500. An unsecured card may start at $700 or more, while some secured cards allow applicants to choose a larger credit line by providing a larger security deposit.

For a secured card, the available credit-line range depends on the specific card. Some secured cards allow deposits and credit lines of $1,000, $2,000, or more, subject to the card's terms.

Does a $500 Credit Limit Mean I Can Spend $500?

Not always. Your available credit can be less than the stated credit limit if a fee is charged against the initial credit line. This is particularly important with some unsecured credit cards that charge an annual fee when the account is opened.

For example, a $700 starting credit limit with a $175 annual fee deducted from the credit line would leave approximately $525 available. The credit limit is still $700, but the amount initially available for purchases is lower.

What Should You Look for in a $500 Credit Card?

If you have bad credit and want at least $500 of available credit, look at the actual starting credit limit, any fees deducted from the credit line, whether the card is secured or unsecured, and whether the issuer offers pre-qualification.

For a secured card, also look at the minimum security deposit and the maximum credit line available. For an unsecured card, pay particular attention to fees that could reduce the amount of credit available when the account is opened.

How Do You Get a $500 Credit Card Limit With Bad Credit?

There are two primary ways. You can look for an unsecured credit card that starts with a credit limit high enough to leave you with at least $500 after any applicable initial fees, or you can choose a secured credit card that allows you to establish a $500 credit line with a refundable security deposit.

The right option depends on whether you want an unsecured card or are willing to provide a security deposit. Either way, review the card's actual fees and credit-line terms before applying so you know how much credit you will have available after the account is opened.