Guaranteed approval credit cards with $500 limits for bad credit

If you’ve avoided credit cards until now, a $500 limit (or something similar) is the perfect way to get your feet wet. Restricting yourself to a lower limit can be a great, low-pressure way to get started with credit cards.

If your credit is less than stellar or you have a limited credit history, a low-limit card may be your only option, as credit card companies typically won't offer higher limits to those who haven't yet proved their creditworthiness.

If you’re looking for a card with a relatively low limit of $500, you have plenty of choices. Here are a few of the best credit card deals.

Citi® Double Cash

If you want one of the best cash-back credit cards available, look no further. Credit limits for the Citi® Double Cash card start at $500.

The available APR for this card ranges between 13.99% – 23.99%. Your exact interest rate will be based on your credit score. 

This card has no annual fee.

You’ll be able to earn 2% cash back on all purchases. Here’s how it breaks down:1% is earned by making the purchase, and 1% is earned by paying it off. That’s like a built-in coupon every time you shop.

If you're in need of a good balance transfer card, this is it. The Double Cash card offers an intro APR of 0% for balance transfers for the first 18 months, after which it will convert to the regular APR used for purchases.

Citi Simplicity®

If you hate fees, the Citi Simplicity® card might be the way to go. You can avoid late fees, penalty interest rates and annual fees with this card. Interest rates range between 14.74% – 24.74%.

Looking for a card with a 0% introductory rate on purchases? The Simplicity® card offers a 0% intro APR on purchases for 12 months.

It's also another great card for balance transfers, with a 0% introductory period that lasts a whopping 21 months.

If you're looking for a solid rewards card, you may want to check out some of the others on this list. But if you want a low-limit card with the goal of making on-time payments increasing your credit score, this card could work for you. 

Bank of America® Cash Rewards

For those who are looking to maximize their cash back rewards, this card is a good option. It offers lower spending limits with access to many incentives. 

This card offers an intro APR of 0% for your first 15 billing cycles, after which interest rates range between 13.99% – 23.99%. Plus, no annual fees.

The cash back opportunities with this card are worthwhile. You can earn 3% cash back in a category of your choosing, 2% at grocery stores and 1% on all other purchases. With this card you can strengthen your credit score while earning cash rewards.

Chase Freedom Unlimited®

The Chase Freedom Unlimited® card offers some cardholders a $500 limit without any annual fees. 

The card offers interest rates between 14.99% – 23.74%, though you'll get an intro APR of 0% on purchases for your first 15 months.

With this card, you'll get unlimited 1.5% cash back on every purchase you make.

Capital One® Platinum

Capital One® Platinum is light on perks, but is good for those looking for a low-limit card to help them build a good credit score. This card has no annual fee.  

With a steep APR, it’s important to manage this card carefully and avoid the high interest rate by paying off your balance in full each month.

Though this is a fairly bare-bones card, with no rewards or cash back program to speak of, it still makes our list for being a solid option for those whose credit scores might not make them eligible for some of the more rewards-heavy options.

Discover it® Cash Back

Discover's popular "it" card comes in a few different iterations, including a travel card, a gas and restaurant cash back card and even a version for students looking to begin their credit-building journey. However, if you're looking for a solid, well-rounded cash back card, the Discover it® Cash Back is the way to go.

This card offers 5% cash back on purchases at a revolving set of retailers. Each quarter comes with new categories eligible for the 5% cash back, such as grocery stores, gas stations or restaurants. 

Plus, even if you miss out on this quarter's category, you'll still earn 1% cash back on all your other purchases. And at the end of your first year, you'll receive a cash-back match on the cash back you've earned. 

There's no annual fee and you get a 0% intro APR for 14 months on both purchases and balance transfers. Regular APR is between 11.99% – 22.99%.

Store Credit Cards

If no other card is a good fit, retail store cards are something worth looking into. Many stores offer credit cards with lower limits. Often, these cards are more accessible to those who are still building their credit. 

If you shop at a particular store a lot, getting their store credit card can be worthwhile depending on the types of discounts or perks the card offers.

However, there are some common pitfalls with store cards that you should be mindful of. Often, these cards can come with higher-than-average APRs, meaning that they can get expensive if you carry a balance on them.

Additionally, with so many robust rewards options available from regular credit cards, it might make more sense to get a card that offers rewards or cash back no matter where you shop. 

Secured Credit Cards For Bad Credit

If you're having trouble getting approved for any credit cards, it may be that your credit score is too low or you don't have a long enough credit history. In this case, you may have to start with a secured credit card.

All of the cards we've mentioned above are unsecured credit cards. With an unsecured card, you don't put anything down to "secure" the debt. If you stop making payments on an unsecured card, there's nothing for the credit card company to hold as collateral to recoup some of their losses.

This makes unsecured cards riskier for creditors, which is why you typically need a good credit score to help minimize their risk.

Secured credit cards offer a way for you to prove yourself. To get a secured card, you'll make a refundable security deposit, typically between a couple hundred to a couple thousand dollars. That deposit becomes your credit limit.

The deposit reduces the risk for the card issuer because it's your money on the line, not theirs, if you stop paying.

Often, you'll have the ability to convert your secured card into an unsecured card if you keep your account in good standing (meaning no late payments) for a certain amount of time. Once your card is converted, you'll be able to get your deposit back.

There are a variety of options for secured cards, such as the Secured Mastercard® from Capital One®, the Discover it® Secured Credit Card, or the OpenSky® Secured Visa® Credit Card.

Student Credit Cards

College students don't typically have extensive credit histories (other than their student loans), which can be a hindrance when trying to build credit. Luckily, student credit cards make getting started with a credit card a little easier, as they typically come with less-strict approvals.

Our pick for student cards? Check out the Discover it® Student Cash Back card. Not only does it have great terms for a starter card (no annual fee, 0% intro APR for 6 months, 12.99% – 21.99% standard APR), it offers the same reward structure as the regular Discover it® card, plus an annual "good grade reward." 

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