Writer: Matt Walker
Editor: Lillian Guevara-Castro
Reviewer: Ashley Fricker
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When it comes to credit cards, bigger isn’t always better. While some consumers may look for flashy cards with bells, whistles, and sky-high credit limits, others may prefer to throttle temptation by maintaining a lower credit limit.
With a low-limit credit card, you can rest assured that you’ll have access to credit in case of emergency or necessity (such as when you want to rent a car), but you won’t have the temptation of overspending yourself into debt.
Here are some of the best credit cards with low initial credit limits.
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Best Overall Low-Limit Credit Cards
Some of our top choices for low-limit credit cards may require a good credit score or better. Your credit rating will often determine your initial credit limit, but if you want to keep your spending levels low, you can contact the issuer to request a lower limit after you’re approved.
This request is one of the many
1. Discover it® Cash Back — $500+ Credit Limit
The Discover it® Cash Back card provides one of the top cash back rewards programs in the credit card space, thanks to its quarterly rotating bonus categories.
Credit limits on this card typically start around $2,000, but the minimum credit line available is $500.
2. Chase Freedom Unlimited® — $500+ Credit Limit
With the Chase Freedom Unlimited®, you have access to Chase Ultimate Rewards, one of the most robust rewards programs in the credit card space. This Visa card has slightly higher acceptance standards, but initial credit limits can be low. Some reviewers report starting off with a spending limit of $500.
Additional Disclosure: Non-Monetized. The information related to Chase Freedom Unlimited® was collected by CardRates and has not been reviewed or provided by the issuer of this product/card. Product details may vary. Please see issuer website for current information. CardRates does not receive commission for this product.
Take a close look at each card’s perks before deciding which offer to pursue. While cash back or travel points may initially seem enticing, they might end up costing you more due to higher interest rates or annual fees.
You can find all of the terms associated with each card in the credit card disclosure statement on each issuer’s website. Most issuers include these statements on the application page.
3. Discover it® Miles — $500+ Credit Limit
With the Discover it® Miles card, you can earn cash back in the form of travel reimbursements that make it easier, and cheaper, to visit the places you’ve always dreamed of.
This card is ideal for frequent travelers who don’t want to be limited to a single airline or hotel when earning rewards.
Best Low-Limit Credit Cards for Bad Credit
If your credit isn’t as strong as you’d like, a solid low-limit credit card might be your path to improvement. By keeping your balances low and always paying your bill on time, you can see gradual increases in your credit score, leading to better credit offers down the road.
Depending on how low your credit score is, you may find that a secured credit card is your best option for rebuilding credit. While these cards require a refundable security deposit to open your account, you can set your own credit limit based on your deposit amount.
4. Milestone® Mastercard® — Up to $500 Credit Limit
The Milestone® Mastercard® has a credit limit of up to $700 and accepts applications from those who have had credit issues. This is an unsecured credit card, meaning there is no deposit required for activation and it reports to all three credit bureaus, so it will help you build credit.
- Guaranteed $700 credit limit if approved.
- Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.
- Don’t Have Perfect Credit? No Problem!
- Join over a million consumers who are working on building their access to credit.
- Zero Fraud Liability – Peace of mind that comes with having a Mastercard.
- Get the credit you deserve, even with less-than-perfect history.
- No security deposit, and a path to better credit.
However, you’ll need to pay a $175 annual fee in the first year (dropping to $49 afterward), which reduces your spending limit until the charge is covered. After the first year, there’s also a monthly fee of $12.50.
Depending on how high your credit limit is, these fees could eat up a sizable chunk of your balance.
5. Capital One Platinum Secured Credit Card — $200 Credit Limit
With the Capital One Platinum Secured Credit Card, you don’t have to worry about your credit limit — because every approved cardholder starts with a $200 spending cap.
While most secured credit cards require a refundable security deposit that matches your credit limit, Capital One has a variable deposit policy that’s based on your credit score. Depending on your credit profile, Capital One will require a $49, $99, or $200 deposit.
Best Low-Limit Credit Cards for No/Limited Credit
Low-limit credit cards are perfect for those beginning their credit journey without enough history to earn a credit score. With a low-limit card, you can start using credit gradually, helping you build up a payment history to establish your score.
As you explore our top selections below, you might uncover some fantastic perks, like cash back and enhanced security features.
6. Capital One Platinum Credit Card — $300+ Credit Limit
With the Capital One Platinum Credit Card, you will start with at least a $300 credit limit, but you can possibly increase your limits after your first five on-time payments.
Capital One requires all applicants to have limited credit — at the very least — to be eligible for approval for this entry-level card.
7. Capital One QuicksilverOne Cash Rewards Credit Card — $300+ Credit Limit
The Capital One QuicksilverOne Cash Rewards Credit Card offers a minimum credit limit of $300 and a host of perks, such as Eno Capital One assistant, automatic credit line reviews, and CreditWise credit monitoring.
This card is a fantastic choice if you’re looking to earn cash back on your purchases, with the added bonus of increasing your credit limit as you consistently make on-time payments.
Best Low-Limit Credit Cards for Students
College is the perfect time to start establishing a credit history. With a good low-limit student credit card, like those listed below, you can maintain access to credit while avoiding the temptation to overspend.
Plus, maintaining a low limit means that you won’t carry debt beyond graduation and into your first job.
8. Discover it® Student Cash Back — $500+ Credit Limit
The Discover it® Student Cash Back starts with a minimum credit limit of $500 and features the ability to earn cash back on all of your eligible purchases.
Your account will transfer over to a traditional Discover card after graduation, which allows you to keep your cash back earnings.
9. Discover it® Student Chrome — $500+ Credit Limit
The Discover it® Student Chrome also starts with a minimum $500 credit limit. Although the card doesn’t have “Cash Back” in the name, you’ll still earn cash back on every purchase made with the card.
This card lets you earn cash back effortlessly without the hassle of tracking rotating bonus categories that require activation every three months.
Best Secured Low-Limit Credit Cards
Secured credit cards are often considered the ultimate low-limit credit cards. Why? Because you set your credit limit based on the refundable security deposit you provide. Whether you’re looking for a $200 limit or up to $2,000, there are secured cards to match your needs.
Some cards won’t even require a credit check for approval, which helps if your credit score isn’t the greatest, but you’re determined to improve it.
10. Capital One Platinum Secured Credit Card — $200 Credit Limit
If you’re approved for the Capital One Platinum Secured Credit Card, you’ll start with a $200 spending limit after paying a refundable security deposit of either $49, $99, or $200 — depending on your credit history.
Capital One considers all cardholders for credit line increases — though you can reject an increase if you want to — after five months of on-time payments. Spending limit increases won’t require an additional deposit. Capital One is among the best secured credit card issuers out there.
11. The secured Chime Visa® Credit Card — No Minimum Requirement
Like all secured credit cards, the The secured Chime Visa® Credit Card requires a refundable security deposit for approval, with your deposit amount matching your spending limit.
Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. The secured Chime Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A. pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank.
*Money added to Chime CardTM will be held in a secured deposit account as collateral for your Chime Card, and you can spend up to this amount. You can use money deposited in your Secured Deposit Account to pay off your charges at the end of every month.
**Out-of-network ATM withdrawal and over the counter advance fees may apply.
***With a qualifying direct deposit, earn 2% cash back on category of choice on eligible secured Chime Visa® Credit Card purchases.
****On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Results may vary.
This card is a good choice for a low-limit secured card — especially when you consider the ability to earn cash back on everyday purchases.
12. opensky® Secured Visa® Credit Card — $200+ Credit Limit
Like many secured credit cards, the opensky® Secured Visa® Credit Card requires a minimum security deposit of $200 for approval. But you can pay more if you’re looking for a higher spending limit. If you want a card that helps you stick to your budget and doesn’t offer the temptation to spend, this secured Visa credit card may be a good option for you.
Remember, your security deposit will be refunded when you close your account, provided the account is in good standing with no unpaid balance. If you cancel your card while carrying a balance, the issuer might deduct what you owe from your deposit before returning the remaining funds.
Best Prepaid Low-Limit Credit Cards
Prepaid credit cards don’t act like traditional credit cards. That’s because these cards only allow you to spend whatever funds you pre-load on them. Once you spend the money, you won’t be able to charge anything further until you load more funds onto the card.
This differs from a secured card, which offers a revolving credit line, allowing you to reuse the credit after you’ve paid it off.
13. NetSpend® Visa® Prepaid Card — Self-Determined Limit
Since the Pink Netspend® Visa® Prepaid Card isn’t a credit card, you won’t actually receive a spending limit. Instead, the card limits your spending power to whatever cash balance you have deposited into your card’s linked account.
Netspend doesn’t require a minimum account balance, but be mindful of the substantial fees it can impose. Know what services are free to avoid depleting your balance unnecessarily.
14. NetSpend® Visa® Prepaid Card — Self-Determined Limit
Like its sibling card listed above, the Netspend® Visa® Prepaid Card doesn’t require a minimum balance, which means you can only spend the money you have loaded onto the card.
Netspend doesn’t require a credit check for approval, but since this isn’t technically a credit card, it won’t help you improve your credit score, either.
15. Brink’s Armored™ Account — Self-Determined Limit
The Brink’s Prepaid Mastercard® does not have a minimum balance requirement, but it oddly states a maximum $15,000 balance for the card. If you have that much money loaded on your card, you’re likely best served putting it into an account that will earn you interest — such as a savings, checking or certificate of deposit (CD) account.
Some prepaid cards function like debit cards, which won’t help you if you’re looking to improve your credit score. You should make certain that you understand how any card you apply for works, and make sure that it meets your needs and can help you reach your goals.
What is the Lowest Limit on a Credit Card?
This depends greatly on the type of credit card you apply for.
Most consumers find the lowest credit limits on secured and retail store credit cards. Your initial security deposit will determine the limit on most secured cards. These cards work if you want to keep your limits low because you decide your limit without any bank input.
But that also means that you have to place a refundable security deposit to get your card. That can defeat the purpose of obtaining credit for some consumers. If you’re a regular shopper at a specific retail store or chain, you can often find low limits on store-branded cards.
That’s because many retailers don’t want to take on the risk associated with issuing higher limits. These cards also often feature higher interest rates and fewer perks, so keep that in mind if you tend to carry a balance from month to month or if you’re looking for cash back or other benefits.
If your credit score isn’t a big concern, the best way to get a low-limit credit card might be to start with the card you want and then lower the limit afterward.
Banks determine credit card limits based on your credit score and submitted income information. Very few card issuers allow you to request a specific initial credit limit, but you can adjust it after approval.
This chart identifies some of the primary differences between secured and unsecured credit cards:
| Secured Credit Cards | Unsecured Credit Cards |
|---|---|
| Refundable deposit required to open an account | No deposit or collateral required to open an account |
| Low risk to the issuer | High risk to the issuer |
| Low-fee cards available to most credit types | Low-fee cards require at least fair credit |
| Credit limit is based on the size of the deposit | Credit limit is based on your credit profile and income |
For most cards, reducing your limit is as simple as reaching out to the bank or issuer once your card is in hand. These adjustments typically take effect immediately.
While this tactic may work to limit your spending temptation, it could have an impact on your credit score. Approximately 30% of your credit score relies on your current credit utilization. You can calculate your utilization by dividing your current balance by your overall credit limit.
For example, a card with a $1,000 limit and a $250 balance has a 25% utilization rate. When you have a high rate, banks may see you as a greater risk. Lower rates show responsibility and a habit of paying bills on time.
If you have a low-limit credit card with an overall limit of $200, a small purchase of $40 can instantly put you at 20% utilization until you pay your balance. So make sure that you pay your bills in full and on time if you maintain a low-limit credit card.
What is the Easiest Credit Card to Get?
Some secured credit cards don’t even require a credit check for approval. It can’t get much easier than that. But that means that you’ll have to place a refundable security deposit to establish your credit limit. That may not work for you.
Unsecured credit cards don’t require a deposit, but have higher standards for approval. Most card issuers don’t publish their minimum requirements for approval, which can make it difficult to decide between the dozens of cards that may interest you.
Using a prequalifying application can give you a clearer picture of your approval odds without affecting your credit.
Every time you apply for any type of credit — a loan, credit card, mortgage, etc. — the lender places an inquiry to one or all three of the major credit reporting bureaus to get access to your credit file. Banks refer to these as hard inquiries.
Here are the types of credit inquiries typically associated with various financial actions:
| Action | Usual Type of Inquiry |
|---|---|
| Obtaining your own credit score | Soft Inquiry |
| Being pre-qualified for a loan or credit card | Soft Inquiry |
| Applying for auto, home, or health insurance | Soft Inquiry |
| Undergoing a background check | Soft Inquiry |
| Applying for a credit card | Hard Inquiry |
| Opening a store credit account | Hard Inquiry |
| Applying for a short-term or installment loan | Hard Inquiry |
| Requesting a credit line increase | Hard or Soft |
| Obtaining a cellphone contract | Hard or Soft |
| Applying for an apartment or rental | Hard or Soft |
| Undergoing identity verification | Hard or Soft |
| Obtaining a cable or utility account | Hard or Soft |
| Opening a bank account | Hard or Soft |
A lender may not care if it sees one or two inquiries on your credit report. But a bank will certainly take notice as that number increases. Banks see multiple inquiries as a sign of desperation. They may think that you’ve exhausted your credit options and need more credit to stay afloat, or that several other banks have already turned you down.
Credit reporting bureaus tend to allow two or three hard inquiries in a two-year period. But after that, each inquiry lowers your credit score. The more inquiries you accrue, the bigger the hit you take.
Meanwhile, a prequalifying application initially relies on a soft inquiry. These applications look at your basic financial information to decide if you’re a good or bad candidate for their card.
A prequalifying approval doesn’t guarantee that you’ll get the card if you formally apply, but it does greatly improve your chances.
Once you decide to formally apply for a card, the lender will issue a hard inquiry to verify the information they have on file. But, by prequalifying, you’ve limited the number of applications you’ll need to submit, thus lowering your number of hard inquiries.
Why Are My Credit Card Limits So Low?
The bank that issues your credit card dictates the size of your credit limit. To determine the amount you’ll receive, the bank will look at your credit history, current debt load, income information, and several other factors — some of which are proprietary to the banks and unknown to consumers.
A single issue with any of those factors can drastically lower your credit limit — or cause an outright application rejection. Even people with excellent credit get rejections.
You can also find yourself with a lower limit if you have no reported information related to your credit history. Banks call these consumers credit invisible — meaning that their credit history is so limited that they cannot generate a reliable credit score.
Banks often view credit invisible consumers as risky because they can’t predict how they’ll repay their debts. To reduce this risk, banks typically offer these cardholders a lower initial credit limit.
Credit cards, much like any loan, are all about risk. Banks want to lend money or offer credit to people they trust will pay them back.
This chart shows the credit score categories lenders often use to evaluate risk, with superprime being the best:
| Credit Tier | Perceived Risk | Credit Score |
|---|---|---|
| Superprime | Lowest Risk | 781 – 850 |
| Prime | Low Risk | 661 – 780 |
| Nonprime | Moderate Risk | 601 – 660 |
| Subprime | High Risk | 501 – 600 |
| Deep Subprime | Highest Risk | 300 – 500 |
If a lender thinks you’re too risky, they’re likely to decline your application. However, if you’re seen as a moderate risk, they might approve you for a low limit until you demonstrate your creditworthiness.
By providing that lower limit, they lessen their risk. After all, would you rather have someone stiff you on a $2,000 loan or a $200 loan?
Your credit limit isn’t set in stone forever. After making five or six months of on-time payments, you can contact your issuer to ask for an increase. Some issuers handle this over the phone, while others provide quick online forms for an instant decision.
Some banks also automatically monitor accounts to see if you’re eligible for a credit limit increase. If the bank finds that you are, it will automatically boost your limit and notify you by email or letter.
Before you request a credit limit increase, make sure your balance is low and your bills are all current. Most credit card issuers allow one credit limit increase every six months, so make your attempt count.
Do Low Limit Cards Hurt Credit?
They can if you don’t pay your balance off each month. With a small limit, it’s easy to have a high credit utilization ratio, which accounts for 30% of your FICO Score.
Your utilization ratio is the percentage of your balance compared to your card’s limit. For example, a card with a $300 limit and a balance of $100 has a 33% credit utilization rate.
High utilization ratios hurt your credit scores, and those with the best credit generally have a utilization ratio below 10%.
But if you consistently pay your bill on time and in full each month, the low limit won’t hurt your credit.
Does Closing Old Credit Card Accounts Impact My Score?
After paying off an older credit card balance, you might feel tempted to close the account to avoid using it. This might be wise if you struggle to control your spending. However, if you can resist using the card, your credit score will benefit from keeping it open.
Keeping an old credit card account open (especially with no balance) can buoy your credit score in two ways. First, it contributes to the length of your credit history, showing credit bureaus that you have managed your finances for a longer period of time.
Second, it can help keep your credit utilization ratio down, as the credit limit on the card is part of your overall limit used to calculate CUR.
Low-Limit Cards Can Teach You to Use Credit Responsibly
Whether you’re new to credit, looking to repair past mistakes, or are a student who wants to learn about credit, maintaining a low limit can help you reach your goals without making mistakes that you may regret later.
Just like in the story of the tortoise and the hare, a steady and deliberate approach will help you succeed in the credit game. This means keeping both your credit limit and balance low until you feel confident managing a higher limit.
And when you do increase it, you’ll know that you have the discipline and financial wherewithal to keep your spending to a minimum — and your credit score to a maximum.
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