Having bad credit can make it difficult to get approved for a credit card. However, there are a number of unsecured credit cards that are designed for people with bad credit. These cards offer a chance to improve your credit score by showing that you can manage credit responsibly. This blog article will discuss the top 10 unsecured credit cards for bad credit. It will provide an overview of each card, including the annual fee, credit limit, interest rate, and rewards. The article will also discuss the factors to consider when choosing an unsecured credit card for bad credit.
Meaning
An unsecured credit card is a type of credit card that does not require a security deposit. This means that you are not required to put down any money to get the card. However, unsecured credit cards for bad credit often have high interest rates and low credit limits.
Top 10 Unsecured Credit Cards for Bad Credit
Here are the top 10 unsecured credit cards for bad credit:
1. Discover it® Secured
This card is a good option for people who are just starting to rebuild their credit. It has a low annual fee of $25 and offers cash back rewards on your purchases.
Main features:
- No annual fee.
- Flexible security deposit. You can choose to put down a security deposit of $200, $400, or $600. The amount of your security deposit will determine your credit limit.
- Cash back rewards. You can earn 2% cash back on gas stations and restaurants, and 1% cash back on all other purchases.
- Automatic credit line increases. Once you have made on-time payments for 7 months, you may be eligible for an automatic credit line increase.
- Credit-building benefits. Using the Discover it® Secured credit card can help you build your credit history and improve your credit score.
Annual fee:
- There is no annual fee for the Discover it® Secured credit card.
Credit limit:
- Your credit limit will be determined by the amount of your security deposit.
- You can request a credit line increase after making on-time payments for 7 months.
Interest rate:
- The interest rate on the Discover it® Secured credit card is 22.99% APR.
Rewards:
- You can earn 2% cash back on gas stations and restaurants, and 1% cash back on all other purchases.
- Cash back rewards can be redeemed for statement credits, gift cards, or merchandise.
Process to apply:
- You can apply for the Discover it® Secured credit card online or by calling Discover customer service.
- You will need to provide your name, address, Social Security number, and income information.
- You will also need to provide a copy of your driver’s license or other government-issued identification.
Overall, the Discover it® Secured credit card is a good option for people with bad credit who are looking to build their credit history. The card has no annual fee and offers cash back rewards, which can help you save money on your everyday purchases.
2. Capital One® Secured Mastercard®
This card is another good option for people who are just starting to rebuild their credit. It has a low annual fee of $35 and offers 1% cash back rewards on all purchases.
Main features:
- No annual fee.
- Flexible security deposit. You can choose to put down a security deposit of $200, $400, or $600. The amount of your security deposit will determine your credit limit.
- Credit-building benefits. Using the Capital One® Secured Mastercard® can help you build your credit history and improve your credit score.
- Early upgrade potential. If you make on-time payments and keep your credit utilization low, you may be eligible to upgrade to an unsecured Capital One credit card after 5 months.
Annual fee:
- There is no annual fee for the Capital One® Secured Mastercard®.
Credit limit:
- Your credit limit will be determined by the amount of your security deposit.
- You can request a credit line increase after making on-time payments for 6 months.
Interest rate:
- The interest rate on the Capital One® Secured Mastercard® is 26.99% APR.
Rewards:
- There are no rewards associated with the Capital One® Secured Mastercard®.
Process to apply:
- You can apply for the Capital One® Secured Mastercard® online or by calling Capital One customer service.
- You will need to provide your name, address, Social Security number, and income information.
- You will also need to provide a copy of your driver’s license or other government-issued identification.
Overall, the Capital One® Secured Mastercard® is a good option for people with bad credit who are looking to build their credit history. The card has no annual fee and offers early upgrade potential, which can help you get an unsecured card faster.
3. OpenSky® Secured Visa®
Main features:
- No annual fee.
- No credit check is required.
- Flexible security deposit. You can choose to put down a security deposit of $200 or $400. The amount of your security deposit will determine your credit limit.
- Credit-building benefits. Using the OpenSky® Secured Visa® can help you build your credit history and improve your credit score.
- Automatic credit line increases. Once you have made on-time payments for 7 months, you may be eligible for an automatic credit line increase.
Annual fee:
- There is no annual fee for the OpenSky® Secured Visa®.
Credit limit:
- Your credit limit will be determined by the amount of your security deposit.
- You can request a credit line increase after making on-time payments for 7 months.
Interest rate:
- The interest rate on the OpenSky® Secured Visa® is 23.99% APR.
Rewards:
- There are no rewards associated with the OpenSky® Secured Visa®.
Process to apply:
- You can apply for the OpenSky® Secured Visa® online or by calling OpenSky customer service.
- You will need to provide your name, address, Social Security number, and income information.
- You will also need to provide a copy of your driver’s license or other government-issued identification.
Overall, the OpenSky® Secured Visa® is a good option for people with bad credit who are looking to build their credit history. The card has no annual fee and no credit check required, which makes it a good option for people who have been denied credit in the past.
Here are some additional details about the OpenSky® Secured Visa®:
- The security deposit is refundable once you close the account and your credit limit reaches $500.
- There is no foreign transaction fee, which can be helpful if you travel internationally.
- The card does not offer any rewards, but it can help you build your credit history and improve your credit score.
If you are looking for a secured credit card with no annual fee and no credit check required, the OpenSky® Secured Visa® is a good option. However, it is important to note that the interest rate is high, so you should only use the card for small purchases that you can afford to pay off in full each month.
4. First Progress® Secured Visa®
Main features:
- No annual fee.
- Flexible security deposit. You can choose to put down a security deposit of $200, $400, or $600. The amount of your security deposit will determine your credit limit.
- Credit-building benefits. Using the First Progress® Secured Visa® can help you build your credit history and improve your credit score.
- Automatic credit line increases. Once you have made on-time payments for 6 months, you may be eligible for an automatic credit line increase.
Annual fee:
- There is no annual fee for the First Progress® Secured Visa®.
Credit limit:
- Your credit limit will be determined by the amount of your security deposit.
- You can request a credit line increase after making on-time payments for 6 months.
Interest rate:
- The interest rate on the First Progress® Secured Visa® is 24.99% APR.
Rewards:
- There are no rewards associated with the First Progress® Secured Visa®.
Process to apply:
- You can apply for the First Progress® Secured Visa® online or by calling First Progress customer service.
- You will need to provide your name, address, Social Security number, and income information.
- You will also need to provide a copy of your driver’s license or other government-issued identification.
Overall, the First Progress® Secured Visa® is a good option for people with bad credit who are looking to build their credit history. The card has no annual fee and offers automatic credit line increases, which can help you get an unsecured card faster.
Here are some additional details about the First Progress® Secured Visa®:
- The security deposit is refundable once you close the account and your credit limit reaches $500.
- There is no foreign transaction fee, which can be helpful if you travel internationally.
- The card does not offer any rewards, but it can help you build your credit history and improve your credit score.
If you are looking for a secured credit card with no annual fee and automatic credit line increases, the First Progress® Secured Visa® is a good option. However, it is important to note that the interest rate is high, so you should only use the card for small purchases that you can afford to pay off in full each month.
5. Credit One® Bank Platinum Visa®
This card has a high annual fee of $95, but it offers a credit limit of up to $1,000. It also offers 1% cash back rewards on all purchases.
Main features:
- Annual fee: $95
- Flexible security deposit. You can choose to put down a security deposit of $200, $400, $600, or $800. The amount of your security deposit will determine your credit limit.
- Credit-building benefits. Using the Credit One® Bank Platinum Visa® can help you build your credit history and improve your credit score.
- Automatic credit line increases. Once you have made on-time payments for 6 months, you may be eligible for an automatic credit line increase.
- Rewards: None
Process to apply:
- You can apply for the Credit One® Bank Platinum Visa® online or by calling Credit One customer service.
- You will need to provide your name, address, Social Security number, and income information.
- You will also need to provide a copy of your driver’s license or other government-issued identification.
Overall, the Credit One® Bank Platinum Visa® is a good option for people with bad credit who are looking to build their credit history. The card has an annual fee, but it offers automatic credit line increases, which can help you get an unsecured card faster.
Here are some additional details about the Credit One® Bank Platinum Visa®:
- The security deposit is refundable once you close the account and your credit limit reaches $500.
- There is no foreign transaction fee, which can be helpful if you travel internationally.
- The card does not offer any rewards, but it can help you build your credit history and improve your credit score.
If you are looking for a secured credit card with an annual fee and automatic credit line increases, the Credit One® Bank Platinum Visa® is a good option. However, it is important to note that the interest rate is high, so you should only use the card for small purchases that you can afford to pay off in full each month.
Here are some of the pros and cons of the Credit One® Bank Platinum Visa®:
Pros:
- Offers automatic credit line increases
- No foreign transaction fee
- Can help you build your credit history
Cons:
- High annual fee
- High interest rate
- No rewards
6. Merrick Bank® Secured Visa®
This card has a low annual fee of $29 and offers 1% cash back rewards on all purchases. It also offers a credit limit of up to $1,000.
8. Capital One Platinum Credit Card
This card has a high annual fee of $75, but it offers a credit limit of up to $1,000. It also offers 1% cash back rewards on all purchases.
Main features:
- Annual fee: $75
- Flexible security deposit. You can choose to put down a security deposit of $200, $400, $600, or $800. The amount of your security deposit will determine your credit limit.
- Credit-building benefits. Using the First Premier® Gold Visa® can help you build your credit history and improve your credit score.
- Early upgrade potential. If you make on-time payments and keep your credit utilization low, you may be eligible to upgrade to an unsecured First Premier credit card after 6 months.
- Rewards:
- 1% cash back on all purchases
- 2% cash back on gas stations and restaurants
- 3% cash back on First Premier travel
- Process to apply:
- You can apply for the First Premier® Gold Visa® online or by calling First Premier customer service.
- You will need to provide your name, address, Social Security number, and income information.
- You will also need to provide a copy of your driver’s license or other government-issued identification.
Interest rate:
- The interest rate on the First Premier® Gold Visa® is 29.99% APR.
Overall, the First Premier® Gold Visa® is a good option for people with bad credit who are looking to build their credit history and earn rewards. The card offers cash back rewards on gas stations, restaurants, and First Premier travel, which can help you save money on your everyday purchases. However, the annual fee is high, so you should only consider this card if you are confident that you can make on-time payments and keep your credit utilization low.
Here are some additional details about the First Premier® Gold Visa®:
- The credit limit is typically between $200 and $1,000.
- There is no foreign transaction fee, which can be helpful if you travel internationally.
- The card does not offer any introductory APR offers.
If you are looking for a credit card with rewards and a low annual fee, the First Premier® Gold Visa® is not a good option. However, if you are willing to pay a higher annual fee, the card can be a good way to build your credit history and earn rewards.
Here are some of the pros and cons of the First Premier® Gold Visa®:
Pros:
- Offers cash back rewards on gas stations, restaurants, and First Premier travel
- Early upgrade potential
- No foreign transaction fee
Cons:
- High annual fee
- High interest rate
- No introductory APR offers
10. Your First Card from Capital One
This card is a good option for people who have never had a credit card before. It has a low annual fee of $39 and offers 1% cash back rewards on all purchases.
Main features:
- Annual fee: $0
- Flexible security deposit. You can choose to put down a security deposit of $200, $400, or $600. The amount of your security deposit will determine your credit limit.
- Credit-building benefits. Using the Your First Card from Capital One can help you build your credit history and improve your credit score.
- Automatic credit line increases. Once you have made on-time payments for 7 months, you may be eligible for an automatic credit line increase.
- Rewards: None
Process to apply:
- You can apply for the Your First Card from Capital One online or by calling Capital One customer service.
- You will need to provide your name, address, Social Security number, and income information.
- You will also need to provide a copy of your driver’s license or other government-issued identification.
Interest rate:
- The interest rate on the Your First Card from Capital One is 26.99% APR.
Overall, the Your First Card from Capital One is a good option for people with bad credit who are looking to build their credit history. The card has no annual fee and offers automatic credit line increases, which can help you get an unsecured card faster. However, the interest rate is high, so you should only use the card for small purchases that you can afford to pay off in full each month.
Here are some additional details about the Your First Card from Capital One:
- The credit limit is typically between $200 and $1,000.
- There is no foreign transaction fee, which can be helpful if you travel internationally.
- The card does not offer any rewards, but it can help you build your credit history and improve your credit score.
If you are looking for a credit card with no annual fee or security deposit, the Your First Card from Capital One is a good option. However, it is important to note that the interest rate is high, so you should only use the card for small purchases that you can afford to pay off in full each month.
Here are some of the pros and cons of the Your First Card from Capital One:
Pros:
- No annual fee
- No security deposit required
- Automatic credit line increases
Cons:
- High interest rate
- No rewards
Conclusion
If you have bad credit, it can be difficult to get approved for a credit card. However, there are a number of unsecured credit cards that are designed for people with bad credit. In this blog we discussed top 10 unsecured credit cards for bad credit. These cards typically have high-interest rates and annual fees, but they can help you build your credit history and improve your credit score.
When choosing an unsecured credit card for bad credit, it is important to consider your individual needs and goals. Some factors to consider include the annual fee, the interest rate, the credit limit, and the rewards program. It is also important to use your credit card responsibly. Make sure to make all of your payments on time and in full. This will help you build your credit history and improve your credit score.
Also Read: 10 Best Credit Cards to Rebuild Bad Credit: Unlock Your Financial Freedom
FAQs on Unsecured Credit Cards for Bad Credit
What is an unsecured credit card?
An unsecured credit card is a type of credit card that does not require a security deposit. This means that you are not required to put down any money to get the card. However, unsecured credit cards for bad credit often have high interest rates and low credit limits.
What are the benefits of using an unsecured credit card for bad credit?
Using an unsecured credit card for bad credit can help you rebuild your credit history. By using the card responsibly and making your payments on time, you can improve your credit score. This can make it easier to qualify for other types of credit, such as loans or mortgages.
What are the risks of using an unsecured credit card for bad credit?
If you do not use the card responsibly, you could damage your credit score. This could make it more difficult to qualify for other types of credit in the future. Additionally, unsecured credit cards for bad credit often have high-interest rates. This means that you could end up paying a lot of interest if you carry a balance on the card.
How do I choose the right unsecured credit card for bad credit?
When choosing an unsecured credit card for bad credit, there are a few factors to consider. These include the annual fee, credit limit, interest rate, and rewards. It is also important to make sure that you can afford to make the monthly payments on the card.
I have bad credit. Can I still get an unsecured credit card?
Yes, you can still get an unsecured credit card even if you have bad credit. However, you may have to pay a higher annual fee or interest rate than someone with good credit. You may also have to put down a security deposit.
