When most people think of credit cards, unsecured cards are what first come to mind. Unlike secured credit cards, which require you to make a security deposit, an
unsecured credit card lets you borrow money without offering up any collateral in return.
It’s not easy to get a credit card with bad credit unless you start with a secured card. But “not easy” isn’t the same as “not possible.” If you know when and how to apply — and which cards to apply for — opening a credit card with no deposit might be more possible than you think.
Here’s a list of some unsecured credit cards for bad credit, plus some helpful tips for getting approved.
6 unsecured credit cards for bad credit
The best credit card for rebuilding credit depends on a few different factors, like your current
credit score and the features you’re looking for. Here’s a breakdown of some popular options.
Credit card | Annual fee | Interest rate | Rewards | Key features | Minimum credit score |
Mission Lane Visa® Credit Card | $0 to $59 | 19.99% to 33.99% APR | None | Preapproval tool to check terms before applying Regular account reviews for credit line increases | 300 |
Petal® 1 Visa® Credit Card | $0 to $59 | 29.49% to 35.24% APR | 2%-10% cash back at select merchants | No annual or foreign transaction fees | No minimum |
Prosper® Card | $59 (first year waived with autopay) | 23.24% to 34.74% APR | None | Initial credit lines from $500 to $3,000 Automatic credit line increase reviews Immediate access to 50% of credit limit upon approval | 640 |
Credit One Bank® Platinum Visa® for Rebuilding Credit | $75 first year, $99 thereafter (billed monthly) | 28.99% variable APR | 1% cash back on eligible purchases | Automatic credit line increase reviews | 500 |
Indigo® Mastercard® | $75 first year, $99 thereafter | 24.90% to 35.90% | None | Prequalification available with no impact to credit score | 300 |
Milestone® Mastercard® | $175 first year, $49 plus $12.50/month | 35.90% | None | $700 initial credit limit | 500 |
How to choose the best unsecured credit card
Some unsecured credit cards offer more favorable terms, while others come with high annual fees or sky-high interest rates. Here’s what to consider before you apply:
Interest rates
Unsecured credit cards for
bad credit often have high annual percentage rates (APRs), which can make carrying a balance expensive. If you don’t plan on paying your balance in full every month,
look for a card with the lowest possible interest rate. Some cards also offer introductory APR promotions, which can provide temporary relief on interest charges. If the interest rate is low, you could also do a balance transfer to offload some of your high-APR debt.
Fees
Many unsecured credit cards designed for bad credit come with fees — and they can be hefty. When researching cards, check for:
Annual fees. An unsecured credit card that charges cardholders money without offering rewards in return might be worth it as you work to
build credit, but having several unsecured cards with high annual fees really adds up.
Monthly maintenance fees. A handful of unsecured credit cards have ongoing fees that cardholders pay each month. Like annual fees, this might be worth it as you’re rebuilding credit, but as your score improves, look for unsecured credit cards with lower fees.
Foreign transaction fees. If you travel internationally or shop from overseas retailers, you’ll want an unsecured credit card that doesn’t charge extra for foreign transactions.
Late payment fees. Most unsecured credit cards charge steep late fees when you miss your due date. Late payments also often show up on your credit report.
Rewards programs
The ability to build credit is a reward in and of itself. But some of the unsecured credit cards also offer perks like cash back rewards for everyday purchases. Just be sure things like annual fees don’t cancel out any benefits you’d earn.
Credit-building features
If rebuilding credit is your main goal, look for a card that actively helps you do that. The best options:
Report to Experian, Equifax, and TransUnion. If you make on-time payments and manage your credit line responsibly, you’ll want your responsible use to show up in your credit history. Check that your card of choice reports to all three credit bureaus.
Offer credit limit increases over time. Some cards automatically review your account for a higher credit limit after a few months of on-time payments.
Provide free credit report monitoring. A few issuers let you track your credit score through their app or website so you can see your progress. This is a perk, but not a must, especially when there are other options out there like EarnIn’s
Credit Monitoring.
Approval odds
Applying for multiple credit cards at once can hurt your credit score, so it’s important to check your approval odds before applying. Many issuers offer prequalification tools that show you if you’re likely to be approved without affecting your credit score.
How to get an unsecured credit card
Since lenders and credit card issuers see applicants with poor credit as risky, you’ll have fewer options and likely pay higher fees until you’ve improved your credit score. But with the right steps, you can improve your approval odds. Here’s what to do:
1. Check your credit score
Before applying, review your credit score with EarnIn’s free
Credit Monitoring tool. Knowing where you stand helps you choose cards that match your credit profile.
2. Research cards for bad credit
Not all credit cards are available to applicants with low scores. Look for unsecured cards specifically designed for people rebuilding credit. Your initial credit limit will likely be low, but on-time payments will improve your score over time, leading to better options in the future.
Many issuers run a soft credit check to see if the potential cardholder is likely to be approved. Since hard checks can temporarily lower your score, this step helps protect your credit while you shop for the best option.
4. Apply strategically
Only apply for one credit card at a time. Multiple applications within a short period can hurt your credit score and make approval even harder.
Unsecured credit card alternatives
If you get denied or think your credit score is still too low to apply, don’t panic. These alternatives can also
help you build credit:
Secured credit cards
A secured credit card requires a refundable security deposit — usually equal to your credit limit. Secured cards report payments to credit bureaus, making them one of the best tools for improving credit. Many secured cards also let you upgrade to an unsecured credit card after establishing a history of responsible use.
Become an authorized user
If a family member or trusted friend has a credit card in good standing, ask if they can add you as an authorized user. You could benefit from their positive payment history without needing to qualify on your own. Just make sure the primary cardholder uses their card responsibly. If they consistently max it out, your credit utilization ratio goes up, which could cause your score to drop.
Credit-builder loans
Credit-builder loans are designed specifically to help you establish or rebuild credit. Instead of receiving money upfront, you make fixed monthly payments into a savings account. Once the loan is paid off, you get the money back, and your on-time payments are reflected on your credit report.
Rent or utility reporting services
Some services allow you to report rent and utility payments to credit bureaus, helping you build credit without taking on new debt. Not every lender factors these payments into credit decisions, but having them reported can still strengthen your score over time.
Frequently asked questions
Can I get an unsecured credit card without a credit history?
It’s possible, but harder. Many unsecured credit cards require some credit history. If you’re just starting out, a secured card or credit-builder loan may be a better option.
How long does it take to rebuild credit with an unsecured credit card?
It depends on your starting credit score and financial habits. With on-time payments and low balances, you may see improvements, but significant changes can take a year or more.
Do cards for people with bad credit offer cash back rewards?
Some do, but they’re rare. If a card offers cash back rewards or travel points, check that the interest rates and annual fees don’t outweigh the benefits.
Do any unsecured credit cards accept bankruptcies?
Unsecured credit cards that accept bankruptcies do exist, but the options are limited, especially if the bankruptcy hasn’t yet been discharged. Prequalification tools can help you find unsecured credit cards you’re eligible for.
Rebuild your credit with confidence with EarnIn
Getting approved for an unsecured credit card with bad credit can be a challenge. But managed responsibly, the right card —
secured or unsecured — is a helpful tool for rebuilding credit. And EarnIn makes it easier with tools like free
Credit Monitoring and
low-balance alerts that help prevent overdraft fees
.
Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.
EarnIn is a financial technology company, not a bank. Banking services are provided by our bank partners on certain products other than Cash Out. Calculated on the VantageScore® 3.0 model. Your VantageScore 3.0 from Experian® indicates your credit risk level and is not used by all lenders, so don’t be surprised if your lender uses a score that’s different from your VantageScore 3.0.
Learn more.
EarnIn is a financial technology company, not a bank. Banking services are provided by our bank partners on certain products other than Cash Out. Calculated on the VantageScore® 3.0 model. Your VantageScore 3.0 from Experian® indicates your credit risk level and is not used by all lenders, so don’t be surprised if your lender uses a score that’s different from your VantageScore 3.0.
Learn more.
EarnIn is a financial technology company, not a bank. Banking services are provided by our bank partners on certain products other than Cash Out.Calculated on the VantageScore® 3.0 model. Your VantageScore 3.0 from Experian® indicates your credit risk level and is not used by all lenders, so don’t be surprised if your lender uses a score that’s different from your VantageScore 3.0.
Learn more.
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