How to Get a Credit Card with a 500 Credit Score

Getting approved for a credit card with a 500 credit score can feel like hitting a wall. Most traditional lenders see this score as high risk, which means rejections, low limits, and high fees are common.

But here’s the reality: it is still possible to get a credit card—even in the deep subprime range.

The key is knowing where to look, what to expect, and how to use the opportunity to rebuild your credit.

This guide walks you through exactly how to do it.

What a 500 Credit Score Means
A score around 500 falls into the “poor” category, indicating:

• Past missed payments
• High utilization or defaults
• Limited or damaged credit history

Lenders see higher risk—but not zero opportunity.

Can You Get a Credit Card with a 500 Score?
Yes—but not the typical rewards or premium cards.

You’ll need to focus on specialized options designed for high-risk borrowers.

Best Credit Card Options for 500 Score

1. Secured Credit Cards
These are the most accessible option.

You provide a security deposit (e.g., ₹10,000), which becomes your credit limit.

Why they work:

• Low risk for lenders
• High approval chances
• Report to credit bureaus

They are the safest starting point.

2. Subprime (Unsecured) Credit Cards
These cards are designed for poor credit profiles.

Features include:

• Low credit limits
• High interest rates
• Annual or monthly fees

Use cautiously.

3. Credit Builder Cards/Programs
Some fintech platforms offer cards linked to fixed deposits or prepaid balances.

These help build credit gradually.

How Secured Cards Help Rebuild Credit
By making small purchases and paying them off on time, you create positive payment history.

This improves your score over time.

Deposit Requirement Explained
Your deposit acts as collateral.

Example:

• Deposit: ₹15,000
• Credit limit: ₹15,000

No deposit = no risk for lender.

Approval Tips for 500 Score Applicants

• Apply for secured cards first
• Avoid multiple applications
• Choose lenders specializing in subprime borrowers

Be strategic.

What to Avoid

• Cards with extremely high fees
• Unverified lenders
• Too many applications at once

These can worsen your situation.

Interest Rates and Fees Reality
Expect:

• Higher APRs
• Annual fees
• Low limits

This is the cost of access.

How to Use the Card Correctly

• Spend small amounts
• Keep utilization below 30%
• Pay the full balance every month

Discipline is critical.

Timeline to Improve from 500 Score
With consistent use:

• 3–6 months: Initial improvement
• 6–12 months: Noticeable progress

Consistency drives results.

Role of in Rebuilding
models reward:

• On-time payments
• Low utilization
• Stable account history

Even small improvements matter.

Transitioning to Better Cards
After improving your score, you can:

• Upgrade to unsecured cards
• Request higher limits
• Access better benefits

Growth is gradual.

Credit Card Options in India vs Global Markets
In India, secured cards linked to fixed deposits are common for low scores.

Global markets offer more subprime card variety.

Psychological Barrier of Rejection
Repeated rejections can be discouraging—but targeted applications increase success chances.

Stay focused.

Common Mistakes to Avoid

• Maxing out the card
• Missing payments
• Closing the card too early

Avoid repeating past errors.

Building Credit Without Over-Reliance
Use your card as a tool—not a crutch.

Controlled usage is key.

Long-Term Credit Strategy

• Build payment history
• Gradually increase limits
• Maintain discipline

Strong habits lead to strong scores.

Future Trends in Credit Access
Alternative data and fintech solutions are expanding access for low-score borrowers.

The landscape is improving.

Final Thoughts on Getting a Credit Card with 500 Score
A 500 credit score may limit your options—but it does not eliminate them. Secured cards and subprime options provide a starting point to rebuild your credit profile.

The real opportunity lies not just in getting approved—but in how you use the card afterward.

With disciplined spending, timely payments, and consistent effort, you can transform a poor credit score into a strong financial foundation.

Every credit journey starts somewhere—this is yours.

Credit scores are indicative and subject to change. Stashfin is an RBI-registered NBFC. A credit score does not guarantee approval. Terms vary by applicant profile.