This can lead to a difficult time building credit. What are your options when it comes to getting a new credit line?
You should be cautious. People with a bad or bad credit history can use unsecured credit cards. Some unsecured credit cards are better for people with bad credit than others. Improving your access to credit may involve a credit card application.
A secured card may be available to you. By their very nature, secured credit cards require a refundable security deposit as collateral to “secure” your card if you miss your payments. Therefore, a secured card without a warranty is not possible.
Secured cards often require a 200 security deposit. What happens if you don’t have enough money to pay for a credit card?
Check the terms before you apply for a credit card. We’ve compiled a list of our top picks to help narrow your search. Remember that access to credit can help improve your credit score, and a credit card application can be the first step towards rebuilding your financial reputation.
Our review of the top unsecured cards for people with bad credit scores will help you choose the right one.
Low fees are best: Petal(r), 2 Visa(r), Credit Card
4.5
★★★★★
Here’s why: The Petal(r), 2 Visa(r), and Credit Card do not charge fees. None.
Petal has eliminated all fees, including late payments, returned payments, and annual fees. This is impressive for any card, but it’s imposing for an unsecured card that accepts consumers with bad credit scores. Important Note: While no fees are associated with the card, interest is still charged. View Details Close Details
Petal created a credit approval algorithm that considers your financial picture, not just bad credit scores. This approach has attracted the attention of both credit card companies and issuers’ attention. Petal claims that you can be approved for the Petal(r), 2 Visa(r), Credit Card with no credit score or credit history as they take a closer look at your overall credit profile.
The Petal(r] 2 Visa U.S.A. Inc. Credit Card offers cardholders 1% up to 1.5% cash back rewards. All everyday purchases earn you 1% cashback. After 12 monthly payments, you can reach 1.5% cashback. This credit card type benefits those who consistently make their payments on time.
Best for travel and restaurant rewards: Deserve(r), Pro Mastercard
4.5
★★★★★
Deserve(r); Pro Mastercard will earn you 3% cash back on travel purchases and 2% on dining purchases. Important to note:
These bonus categories investments do not make your extra cashback. They only apply to the first 500 transactions in each billing cycle.
You’ll also get an unlimited 1% cashback on all purchases.
Many consumers may find the Deserve(r) Pro Mastercard an excellent choice. However, college students may prefer the Deserve(r) EDU Mastercard. View Details Close Details
Petal created a credit approval algorithm that considers your financial picture, not just credit scores. Petal claims you can be approved for the Petal(r), 2 Visa(r), and Credit Card without a credit score or credit history. Petal works with major credit bureaus and financial institutions to evaluate various credit types for better approval decisions.
The Petal(r] 2 Visa(r) Credit Card offers cardholders 1% up to 1.5% cash back rewards. All purchases earn you 1% cashback. After 12 monthly payments on time, you can reach 1.5% cashback.
Capital One(r) Platinum Credit Card is the best for building credit.
4.5
★★★★★
Here’s how it works: Cardholders can access higher credit limits within six months. Whether you’re associated with a credit union or a traditional bank, this card can help you build credit responsibly.
This is a great incentive for you to pay your bills every month on time. If you keep your spending rate constant after obtaining a higher credit limit, your credit utilization may increase, which could also help your credit score! View Details Close Details
Capital One(r) Platinum Credit Card is a great choice for those looking for a debit card that does not have annual or foreign transaction fees. Since it is a type of offering by financial services companies, Capital One provides options, such as lines of credit or credit limit increases, to its users. You’ll also get travel accident insurance and extended warranty coverage for eligible purchases. However, you can only earn rewards with a good credit history.
Best for unlimited cash back: Capital One(r) QuicksilverOne(r) Cash Rewards Credit Card
4.5
★★★★★
Here’s the reason: The Capital One(r), QuicksilverOne (r) Cash Rewards Credit Card will allow you to earn 1.5% cashback on all your purchases. View Details Close Details
You’re correct: The Capital One(r), QuicksilverOne (r) Cash Rewards Credit Card has no reward caps. The card gives you 1.5% back on all purchases. This is impressive for a card that only accepts applicants with fair credit.
The annual fee for this card is $39/ You will need to spend just $2,600 to earn this much cashback. That’s about $217 per month. This card is a good choice if you intend to spend more each month.
Prequalification is best with Credit One Bank (r) Platinum Visa(r) for Rebuilding Credit.
4.1
★★★★★
Here’s how it works: When you apply for the Credit One Bank(r) Platinum Visa(r) for Rebuilding your Credit card through the online application, you can see if you are eligible before you complete the application process.
It is a Soft Credit Check that won’t impact your credit scores. Using their mobile app, you can check if you are prequalified in under a minute. Prequalification is especially helpful for bad credit borrowers as it does not guarantee approval of credit cards. View Details Close Details
Credit One Bank(r), Platinum Visa(r), for Rebuilding Credit, allows you to earn rewards and build your credit while managing your outstanding balances. Earn 1% cash back rewards for gas, grocery purchases, and internet and satellite TV services. As a statement credit, cashback is applied automatically.
The card also includes automatic, regular reviews of your account to determine eligibility for credit line increases.
Credit prequalification, rewards, and automatic credit line review are some of the most notable features of the Credit One Bank(r), Platinum Visa(r), with Cash Back Rewards. The card also offers Vantage 3.0 to help monitor credit scores.
The first year’s annual fee is $75 and $99 for each subsequent year. However, there are other areas where it lags. It includes other costly expenses such as cash advances, late or returned payments, and a variable purchase APR of 17.99% – 23.99%. The card also has minimum credit limits, which may not be ideal for some users.
These cards: How did we pick them?
When choosing the best-unsecured credit card, we looked for card issuers who would accept applicants with average, limited, or damaged credit histories. We also considered how issuers made credit decisions to ensure fair evaluation of applicants.
We also searched for cards with low fees and competitive rates. You may be looking for unsecured cards to help with bad credit. This is because you don’t want to have to make the same deposits as secured cards. However, if you have to pay a high annual fee for an unsecured card, it can defeat the purpose.
Some secured cards will reimburse the deposit after a certain amount of timely minimum payments. You’d eventually get your money back. Annual fees are different.
We also looked for unsecured credit cards that offered rewards. Most of the card issuers listed here agree. It would be best to be in the loop when earning points or cash back.
How to get the best out of unsecured credit cards with bad credit
These are some tips to help you make the most of this list. Firstly, make consistent minimum payments to reduce your credit card balances steadily. This will improve your credit score, as the major credit reporting agencies track these balances. In addition, look for cards that offer Introductory rates to save on interest charges, but be mindful of their expiry dates to avoid accumulating higher credit card balances later on.
- Every month, pay your bill on time and maintain Monthly reporting. Your payment history is one of the most critical aspects of your credit score. Make sure that you pay your bills on time every month. Set up reminders for Monthly reporting and request automatic payments from your checking account. You can pay the entire bill on time if you prefer to avoid interest and reduce credit card debt.
- Your balance should be kept low to build a positive credit history. The amount of credit you use is another key factor in credit scores. This can be calculated by looking at your credit utilization ratio. It is the sum of all your credit balances divided by your credit limits. Your history over time can benefit more if your rate is lower than it should be. Experts recommend that you keep your total credit card usage below 30%.
- Only apply for one credit card in a short time. Although applying for multiple credit cards may seem tempting, it is best to wait before applying to maintain a positive credit history. Each hard credit inquiry attached to an application won’t affect your credit score. However, too many can lead to lower credit scores and signal that you are a risky borrower. This can impact your chances of being approved.
After your credit score has improved, you may be eligible for credit cards with better terms and rewards, such as Visa Signature and American Express. You can find more ways to improve your credit score by visiting our Guide for Building Credit.
Below are statistics on unsecured credit cards:
| Statistic | Value |
|---|---|
| Average interest rate | 16.24% |
| Average annual fee | $55 |
| Average credit limit | $5,000 |
| Percentage of Americans with an unsecured credit card | 20% |
| Average credit score for someone with an unsecured credit card | 670 |
Is it a good idea to apply now for an unsecured card?
Swapping a secured credit card for an unsecured one may be possible, depending on your financial situation. These are a few examples of how this could work for you.
- No credit history. Some cards, like Visa Signature, do not require credit histories. The Petal(r), 2 Visa(r), and Credit Card use your banking information to determine if you are eligible.
- You are a student. You can build your credit with unsecured student credit cards like American Express. Some even offer rewards. Green Day Online allows you to compare student credit card offers.
- A bankruptcy has occurred. You can still qualify for some credit cards with an initial credit limit, even if your credit report shows default and you don’t have excellent credit.
Each credit card is intended for people with poor credit or limited credit. However, approval is not guaranteed. Before applying, make sure to check your credit score.
As a leading provider of unsecured credit cards for individuals with bad credit, our company is committed to helping people regain financial stability and access the credit they need. We take pride in our extensive network across several American states. With a strong presence in these regions, we have assisted countless individuals in rebuilding their credit history. Below, you will find a comprehensive table highlighting all the states where our company is actively operating, ensuring that individuals nationwide have access to our services and the opportunity to embark on their journey toward improved creditworthiness.
| AL – Alabama | AK – Alaska | AZ – Arizona |
| AR – Arkansas | CA – California | CO – Colorado |
| CT – Connecticut | DE – Delaware | DC – District Of Columbia |
| FL – Florida | GA – Georgia | HI – Hawaii |
| ID – Idaho | IL – Illinois | IN – Indiana |
| IA – Iowa | KS – Kansas | KY – Kentucky |
| LA – Louisiana | ME – Maine | MD – Maryland |
| MA – Massachusetts | MI – Michigan | MN – Minnesota |
| MS – Mississippi | MO – Missouri | MT – Montana |
| NE – Nebraska | NV – Nevada | NH – New Hampshire |
| NJ – New Jersey | NM – New Mexico | NY – New York |
| NC – North Carolina | ND – North Dakota | OH – Ohio |
| OK – Oklahoma | OR – Oregon | PA – Pennsylvania |
| RI – Rhode Island | SC – South Carolina | SD – South Dakota |
| TN – Tennessee | TX – Texas | UT – Utah |
| VT – Vermont | VA – Virginia | WA – Washington |
| WV – West Virginia | WI – Wisconsin | WY – Wyoming |
What are some options for secured credit cards?
Here are some options for you if you want a secured credit card to help you improve your credit score.
- Discover It(r) Secured credit card: This card can be used by anyone looking for a secured credit card that offers rewards. It has a minimum security deposit lower than many traditional credit cards.
- Capital One Platinum Secured credit card: This card is great if you have little cash for a security deposit. It has a lower deposit requirement compared to the average credit card.
- Platinum Mastercard Secured Credit Visa(r) Card: If you are worried about bankruptcy filing or foreclosure, you can apply for this card. The cash deposit required is also reasonable for those with constrained budgets.
Frequently Asked Questions
How can I apply for an unsecured credit card with bad credit through GreenDayOnline?
You can apply for a GreenDayOnline unsecured credit card online through their website or over the phone, with no credit check required. You pay a refundable deposit to set your initial credit limit.
What are the credit score requirements for obtaining an unsecured credit card from GreenDayOnline if you have bad credit?
GreenDayOnline does not have strict credit score eligibility requirements since their cards are designed specifically for those with bad or no established credit.
Are there any annual fees or hidden charges associated with GreenDayOnline’s unsecured credit cards for bad credit?
Yes, there are annual, monthly, and account opening fees around $100-$200 as well as cash advance fees and potential late payment fees to be aware of.
Can you provide information on the credit limit and interest rates offered by GreenDayOnline for their unsecured credit cards designed for individuals with bad credit?
Credit limits range from $200-$3000 based on the refundable deposit you pay. Interest rates are quite high, commonly around 30% APR.
What are the benefits and features that make GreenDayOnline’s unsecured credit cards a good choice for people with bad credit compared to other options in the market?
Benefits include no credit check or income verification required and the ability to build credit through on-time payments. High fees may outweigh advantages for some applicants.
