easiest unsecured credit cards to get
This can lead to a difficult time building credit. What are your options when it comes to getting a new credit line?
There are unsecured credit cards that can be used by people with a bad credit history or bad credit. You should be cautious. Some unsecured credit cards are better for people with bad credit than others.
A secured card may be available to you. By their very nature, secured credit cards require a deposit as collateral to “secure” your card in the event 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 down your search.
Our review of the top unsecured cards for people with bad credit will help you choose the right one.
Low fees are best: Petal(r), 2 Visa(r), Credit Card
Here’s why: The Petal(r), 2 Visa(r), Credit Card does not charge any fees. None.
Petal has eliminated all fees, including late-payment and returned-payment fees as well as annual fees. This is impressive for any card, but it’s imposing for an unsecured card that accepts consumers with limited credit. Important Note: While there are no fees associated with the card, interest is still charged.
Petal created a credit approval algorithm that considers your financial picture and not just credit scores. Petal claims that you can be approved for the Petal(r), 2 Visa(r), Credit Card with no credit score or credit history.>
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 on-time payments, you will be able to reach 1.5% cashback.
Best for travel and restaurant rewards: Deserve(r), Pro Mastercard
Deserve(r), Pro Mastercard will earn you 3% cashback on your travel purchases and 2% cash back on dining purchases. Important to note:
These bonus categories investments do not make your extra cashback. They only apply to the first 500 transactions each billing cycle.
You’ll also get an unlimited 1% cashback on all purchases
Many consumers may find the Deserve(r) Pro Mastercard to be an excellent choice. However, college students may prefer the Deserve(r), EDU Mastercard.
Petal created a credit approval algorithm that considers your financial picture and not just credit scores. Petal claims that you can be approved for the Petal(r), 2 Visa(r), Credit Card with no credit score or credit history.
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 on-time payments, you will be able to reach 1.5% cashback.
Capital One(r), Platinum Credit Card is the best for building credit
Here’s how it works: Cardholders can access higher credit limits within six months.
This is a great incentive for you to pay your bills every month on time. If you can keep your spending rate constant after obtaining a higher credit limit, your credit utilization may increase, which could also help your credit score!
Capital One(r), Platinum Credit Card does not have annual or foreign transaction fees. You’ll also get travel accident insurance and extended warranty coverage for eligible purchases. However, you will not be able to earn any rewards.
Best for unlimited cash back: Capital One(r) QuicksilverOne(r) Cash Rewards Credit Card
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.
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. To earn this much cashback, you will need to spend just $2,600. 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.
Here’s how it works: When you apply for the Credit One Bank(r), Platinum Visa(r), for Rebuilding Credit card online, you can see if you are eligible before you apply.
It is a Soft Credit Check, which won’t impact your credit scores. You can check if you are prequalified in under a minute. Prequalification does not guarantee approval.
Credit One Bank(r), Platinum Visa(r), for Rebuilding Credit allows you to earn rewards and build your credit. Earn 1% cash back rewards for gas and grocery purchases as well as 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.
However, there are other areas where it lags. The first year’s annual fee is $75 and $99 for each subsequent year. It includes other costly expenses such as cash advances, late or returned payments, and a variable purchase APR of 17.99% – 23.99%.
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 searched for cards with low fees. 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.
After a certain amount of timely payments, some secured cards will reimburse the deposit. You’d eventually get your money back. Annual fees are not like that.
We also looked for unsecured credit cards that offered rewards. When it comes to earning points or cash back, you should not be out of the loop. Most of the card issuers listed here agree.
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.
- Every month, pay your bill on time. 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 each month and request automatic payments from your checking account. You can pay the entire bill on time if you prefer to avoid interest.
- Your balance should be kept low. The amount of credit that 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 credit score can benefit more if your rate is lower than it should be. Experts recommend that you keep your total credit card usage below 30%.
- Do not apply for multiple credit cards in a short time. Although it may seem tempting to apply for multiple credit cards, it is best to wait before applying. Your credit score won’t be affected by each hard credit inquiry attached to an application. 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. You can find more ways to improve your credit score by visiting our Guide for Building Credit.
Do you think it’s a good idea to apply now for an unsecured card?
Depending on your financial situation, it may be possible to swap a secured credit card for an unsecured one. These are just a few examples of how this could work for you.
- No credit history. Some cards 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. Some even offer rewards. BFN allows you to compare student credit card offers.
- A bankruptcy has occurred. You can still qualify for some credit cards, even if your credit report shows default.
Each of these credit cards is intended for people with poor credit or limited credit. However, approval is not guaranteed. Before applying, make sure to check your credit score.
What are some options for secured credit cards?
Here are some options for you if you are interested in 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.
- Capital One Platinum Secured credit card: This card is great if you don’t have much cash for a security deposit.
- Secured Credit Visa(r), Card: If you are worried about a bankruptcy filing or foreclosure, you can apply for this card.
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I am David, economist, originally from Britain, and studied in Germany and Canada. I am now living in the United States. I have a house in Ontario, but I actually never go. I wrote some books about sovereign debt, and mortgage loans. I am currently retired and dedicate most of my time to fishing. There were many topics in personal finances that have currently changed and other that I have never published before. So now in Business Finance, I found the opportunity to do so. Please let me know in the comments section which are your thoughts. Thank you and have a happy reading.
