When you have bad credit, it can be challenging to find credit cards that you qualify for. However, there are two types of credit cards that are available for individuals with bad credit: secured credit cards and unsecured credit cards.
Secured credit cards require a refundable security deposit before your account is opened. These cards act like standard, unsecured credit cards, but they have higher interest rates and annual fees. On the other hand, unsecured credit cards for bad credit do not require a security deposit, but they often come with higher interest rates and fees due to the higher risk associated with borrowers who have bad credit.
If you have fair credit or no credit history, you may have access to a wider range of credit cards with more favorable terms, such as lower interest rates and fees.
Best Unsecured Credit Cards for Bad Credit: Summary
- Best card for bad credit with no deposit: Mission Lane Visa® Credit Card
- Best for being prequalified: card_name
- Best for unlimited cash back: card_name
- Best for low annual fee: card_name
- Best for those with a prior bankruptcy: Destiny Mastercard®
- Best for no annual fee and high credit limit: Tomo Credit Card
- Best for earning cash back: Credit One Bank® Platinum Visa®
Why we recommend these unsecured credit cards for bad credit
Best card for bad credit with no deposit: Mission Lane Visa® Credit Card
The Mission Lane Visa® Credit Card is a great option if you have bad credit and don’t want to pay a security deposit. This card offers lines of credit starting at $300, with no annual fees. While it doesn’t offer rewards, it provides the opportunity to avoid an annual fee if your credit isn’t as bad as you thought. Keep in mind that it has a 3% foreign transaction fee.
Best for being prequalified: card_name
The card_name is designed for those with bad or fair credit. It offers a prequalification process that allows you to see if you’re likely to be accepted without affecting your credit. Although it doesn’t offer rewards or balance transfers, it can give you a good idea of your chances of approval. This card has an annual fee.
Best for unlimited cash back: card_name
If you’ve made progress in rebuilding your credit, the card_name is an excellent choice. It offers unlimited 1.5% cash back on all purchases, along with valuable benefits such as six months of complimentary Uber One membership. With a annual fee and no foreign transaction fees, this card is a great option for earning cash back.
Best for low annual fee: card_name
Prosper offers the card_name, which doesn’t require a security deposit. It has a low annual fee and offers benefits such as instant access to 50% of your available credit while waiting for your card to ship. Prosper also reviews your credit regularly for potential credit line increases.
Best for those with a prior bankruptcy: Destiny Mastercard®
The Destiny Mastercard® is available to applicants with bad credit, including those with a prior bankruptcy. However, it comes with a high annual fee and other charges. The annual fee is annual_fees, making the total for the second year annual_fees.
Best for no annual fee and high credit limit: Tomo Credit Card
Tomo Credit Card is another option for individuals with bad credit. It offers a high credit limit of up to $10,000 and doesn’t charge an annual fee. However, it requires you to link your bank account and set up autopay. This card is not suitable for those who need to borrow money.
Best for earning cash back: Credit One Bank® Platinum Visa® For Rebuilding Credit
CreditOne Bank specializes in offering unsecured credit cards to individuals with bad credit. The Platinum Visa® For Rebuilding Credit offers 1% cash back on eligible purchases, including gas, groceries, and mobile phone services. It has an annual fee of $75 for the first year, which increases to $99 thereafter.
FAQs
Can I get an unsecured credit card with a 500 credit score?
Yes, there are unsecured credit cards available for individuals with credit scores of 500 or lower.
What is an unsecured credit card for bad credit?
Unsecured credit cards for bad credit are designed for individuals with poor credit. Unlike secured credit cards, they don’t require a security deposit. However, they often come with higher fees.
Are secured or unsecured credit cards best for rebuilding credit?
Both secured and unsecured credit cards can help individuals rebuild their credit. The main difference is that secured credit cards require a refundable security deposit and are less likely to charge an annual fee.
Can a secured credit card become unsecured?
Some secured credit cards offer cardholders a refund of their deposit after consistently making payments on time and avoiding debt.
Can you get a credit card after bankruptcy?
Yes, you can qualify for a credit card designed for individuals with bad credit, even after bankruptcy.
How can I get approved for a credit card with bad credit?
To get approved for a credit card with bad credit, you should apply for cards specifically designed for individuals with bad credit. While these cards may charge a security deposit or significant annual fees, approval is still possible.
Can I prequalify for credit cards with bad credit?
Some credit cards for individuals with bad credit offer a prequalification process that allows you to check your eligibility without affecting your credit score.