It is indeed possible to get a credit card with a below-average credit score of 500 or even less. However, these kinds of credit cards often have high initial fees and interest rates to cover the higher risk. Nevertheless, it may not be the higher fees and rates that may be the problem for a person with a 500 credit score but his ability to manage his finances. Thus, a secured credit card may be a better option for him to build up his credit rating.

Some people may believe that not having a credit card would be best and it may indeed be best for a number of people. However, there are many transactions where a credit card is need, such as car rentals, purchasing an airplane ticket, and others. Moreover, a credit card is one of the ways of improving one’s credit rating. 

To get a secured credit card a person has to open a savings account in the issuing bank and the credit limit will be a certain percentage of the amount deposited. This limit is often within the range of $200 to $500. He must then make sure that his purchases do not exceed 30 percent of the card’s limit and that he pays the amount in full every month. He can then ask the bank to issue a credit statement each month.

When choosing the provider for the secured credit card, it would be worthwhile to make sure that it offers a way to convert it into a regular credit card after a certain period of time. The unsecured credit card usually has a lower interest rate, lower fees, and fewer restrictions.

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Moe Bedard
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My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications. I currently live in Carlsbad, California with my beautiful wife and children.

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