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March 3, 2023
*Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.
This article was last updated March 3, 2023 . Terms and conditions may have changed. For the most accurate information, please consult the issuer website.
The Capital One Platinum Credit Card is our top overall pick for cardholders with a limited credit history. That’s because, along with Capital One benefits, the card comes with a $0 annual fee and potential credit line increases.
If you have bad, limited or nonexistent credit history, you may think your chances of credit card approval are slim to none. You may also assume you can only qualify for a secured credit card that requires a security deposit and has low credit limits.
However, unsecured credit cards — cards that don’t require a cash deposit to secure a credit line — are available, even if your credit isn’t up to par. Be aware that some of these cards come with high fees for applicants with low credit scores. The best unsecured credit cards for no credit have low or no annual fees, provide an avenue to build credit through responsible use and even earn rewards for card spending.
Sign-up bonus: No bonus
Earning rate: non-rewards card
Why we picked this card: The Capital One Platinum Credit Card can help you build credit with payments reported to the three major credit bureaus and free credit monitoring through Creditwise from Capital One. This no-annual-fee card doesn’t earn rewards, though it does offer fraud protection and automatic account reviews after six months to see if you qualify for a higher credit limit.
| Pros | Cons |
|---|---|
$0 annual fee No foreign transaction fees Automatic credit limit increase review after six months | No rewards High APR No sign-up bonus offer |
The Capital One Platinum Credit Card is best for consumers who want to boost their credit profile with the help of a $0-annual-fee card from a major issuer.
The Capital One Platinum Credit Card is intended for individuals with fair/limited credit, which Capital One describes as those who have defaulted on a loan in the past five years or those who have had a credit card or other credit for less than three years.
While the card doesn’t earn rewards, after demonstrating responsible usage, you may be able to request a product change to a Capital One card that does — such as the Capital One QuicksilverOne Cash Rewards Credit Card or the Capital One VentureOne Rewards Credit Card.
Sign-up bonus: No bonus
Earning rate: non-rewards card
Why we picked this card: The Capital One Platinum Credit Card can help you build credit with payments reported to the three major credit bureaus and free credit monitoring through Creditwise from Capital One. This no-annual-fee card doesn’t earn rewards, though it does offer fraud protection and automatic account reviews after six months to see if you qualify for a higher credit limit.
| Pros | Cons |
|---|---|
$0 annual fee No foreign transaction fees Automatic credit limit increase review after six months | No rewards High APR No sign-up bonus offer |
The Capital One Platinum Credit Card is best for consumers who want to boost their credit profile with the help of a $0-annual-fee card from a major issuer.
The Capital One Platinum Credit Card is intended for individuals with fair/limited credit, which Capital One describes as those who have defaulted on a loan in the past five years or those who have had a credit card or other credit for less than three years.
While the card doesn’t earn rewards, after demonstrating responsible usage, you may be able to request a product change to a Capital One card that does — such as the Capital One QuicksilverOne Cash Rewards Credit Card or the Capital One VentureOne Rewards Credit Card.
Sign-up bonus: None
Earning rate: Non-rewards card
Why we picked this card: The AvantCard Credit Card offers few perks, but it does provide a path to better credit through responsible use with a reasonable annual fee. Plus, the card allows you to prequalify without affecting your credit score, making it one of the best unsecured credit cards for poor credit. Avant regularly checks your account and lets you know if you qualify for a higher credit limit.
| Pros | Cons |
|---|---|
| Foreign transaction fees: None Reports to the three major credit bureaus Automatic credit line reviews | No rewards High APR Annual fee |
If you’re having a difficult time being approved for a traditional credit card due to negative credit history, the AvantCard Credit Card is a decent option.
The AvantCard Credit Card is designed for individuals with fair/poor/limited credit. But unlike subprime cards that charge expensive fees, the AvantCard Credit Card only charges a $59 annual fee.
That said, you can’t apply for the AvantCard Credit Card if you’re a resident of Colorado, Iowa, Vermont, West Virginia or Wisconsin. Also, the card does not allow authorized users.
Sign-up bonus: None
Earning rate: Non-rewards card
Why we picked this card: The AvantCard Credit Card offers few perks, but it does provide a path to better credit through responsible use with a reasonable annual fee. Plus, the card allows you to prequalify without affecting your credit score, making it one of the best unsecured credit cards for poor credit. Avant regularly checks your account and lets you know if you qualify for a higher credit limit.
| Pros | Cons |
|---|---|
| Foreign transaction fees: None Reports to the three major credit bureaus Automatic credit line reviews | No rewards High APR Annual fee |
If you’re having a difficult time being approved for a traditional credit card due to negative credit history, the AvantCard Credit Card is a decent option.
The AvantCard Credit Card is designed for individuals with fair/poor/limited credit. But unlike subprime cards that charge expensive fees, the AvantCard Credit Card only charges a $59 annual fee.
That said, you can’t apply for the AvantCard Credit Card if you’re a resident of Colorado, Iowa, Vermont, West Virginia or Wisconsin. Also, the card does not allow authorized users.
Sign-up bonus: N/A
Earning rate: Earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants
Why we picked this card: The Petal® 2 Cash Back, No Fees Visa® Credit Card doesn’t carry an annual fee or any other common fees found with other credit cards. You can prequalify without affecting your credit, although you may qualify for a different Petal card depending on your credit and other factors. It’s one of the best unsecured credit cards for fair credit because it earns up to 1.5% cash back on purchases plus bonus cash back at select merchants.
| Pros | Cons |
|---|---|
Cash back rewards $0 annual fee Foreign transaction fees: None | Complicated rewards Limited card benefits Potentially high APR |
If you’re new to credit, the Petal 2 Credit Card could be a good fit. It differs from competing credit cards by using a “Cash Score” in determining your eligibility.
If you have no credit history, you may be asked to link a bank account so that an algorithm can be used to analyze factors such as transaction history, money earned and money spent each month, and bills paid. This makes it easier for consumers who have responsible financial habits, but haven’t had credit before, to qualify for a card.
Sign-up bonus: N/A
Earning rate: Earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants
Why we picked this card: The Petal® 2 Cash Back, No Fees Visa® Credit Card doesn’t carry an annual fee or any other common fees found with other credit cards. You can prequalify without affecting your credit, although you may qualify for a different Petal card depending on your credit and other factors. It’s one of the best unsecured credit cards for fair credit because it earns up to 1.5% cash back on purchases plus bonus cash back at select merchants.
| Pros | Cons |
|---|---|
Cash back rewards $0 annual fee Foreign transaction fees: None | Complicated rewards Limited card benefits Potentially high APR |
If you’re new to credit, the Petal 2 Credit Card could be a good fit. It differs from competing credit cards by using a “Cash Score” in determining your eligibility.
If you have no credit history, you may be asked to link a bank account so that an algorithm can be used to analyze factors such as transaction history, money earned and money spent each month, and bills paid. This makes it easier for consumers who have responsible financial habits, but haven’t had credit before, to qualify for a card.
Sign-up bonus: No bonus
Earning rate: 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply)
Why we picked this card: Bad credit doesn’t mean you can’t earn rewards, as shown by the Capital One QuicksilverOne Cash Rewards Credit Card. The card earns unlimited 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply). It also features automatic credit line reviews in as little as six months, as well as access to free credit monitoring through Creditwise from Capital One.
| Pros | Cons |
|---|---|
High bonus cash back rates Automatic credit line reviews | $0 annual fee High APR No sign-up bonus offer |
The Capital One QuicksilverOne Cash Rewards Credit Card is best for individuals with fair/limited credit who’ll spend at least $2,600 on the card in a year — since that’s how much cash back it will take to recoup the annual fee.
After demonstrating responsible card usage and building a relationship with Capital One, you may be able to request a product change to the Capital One Quicksilver Cash Rewards Credit Card, which earns cash back at the same flat rate as the Capital One QuicksilverOne Cash Rewards Credit Card and charges a $0 annual fee.
Sign-up bonus: No bonus
Earning rate: 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply)
Why we picked this card: Bad credit doesn’t mean you can’t earn rewards, as shown by the Capital One QuicksilverOne Cash Rewards Credit Card. The card earns unlimited 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply). It also features automatic credit line reviews in as little as six months, as well as access to free credit monitoring through Creditwise from Capital One.
| Pros | Cons |
|---|---|
High bonus cash back rates Automatic credit line reviews | $0 annual fee High APR No sign-up bonus offer |
The Capital One QuicksilverOne Cash Rewards Credit Card is best for individuals with fair/limited credit who’ll spend at least $2,600 on the card in a year — since that’s how much cash back it will take to recoup the annual fee.
After demonstrating responsible card usage and building a relationship with Capital One, you may be able to request a product change to the Capital One Quicksilver Cash Rewards Credit Card, which earns cash back at the same flat rate as the Capital One QuicksilverOne Cash Rewards Credit Card and charges a $0 annual fee.
Sign-up bonus: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Earning rate: 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically
Why we picked this card: Discover it® Student Cash Back offers students a chance to build credit while earning rewards. This no-fee card earns 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically Discover automatically matches all the cash back you’ve earned at the end of your first year for new cardholders.
| Pros | Cons |
|---|---|
$0 annual fee High rate of cash back on rotating bonus categories First-year cash-back match Intro APR offer | Bonus categories must be activated quarterly Elevated cash back rate capped at $1,500 limit per quarter High APR |
Building credit history while you’re in college can set you up for success later in life. If you’re a student looking for your first card, the Discover it® Student Cash Back is a good choice. Additionally, as long as you remember to activate the bonus categories each quarter, you’ll earn an exceptional cash back rate with this card.
Note, there’s a $1,500 spending cap on the accelerated cashback rate each quarter. This means you can earn a maximum of $75 in cash back each quarter at the higher rate before your earning rate drops to 1%.
Also know, to apply for this card, you must be at least 18 years old, have a U.S. address, have a Social Security Number and show proof of education.
Sign-up bonus: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Earning rate: 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically
Why we picked this card: Discover it® Student Cash Back offers students a chance to build credit while earning rewards. This no-fee card earns 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically Discover automatically matches all the cash back you’ve earned at the end of your first year for new cardholders.
| Pros | Cons |
|---|---|
$0 annual fee High rate of cash back on rotating bonus categories First-year cash-back match Intro APR offer | Bonus categories must be activated quarterly Elevated cash back rate capped at $1,500 limit per quarter High APR |
Building credit history while you’re in college can set you up for success later in life. If you’re a student looking for your first card, the Discover it® Student Cash Back is a good choice. Additionally, as long as you remember to activate the bonus categories each quarter, you’ll earn an exceptional cash back rate with this card.
Note, there’s a $1,500 spending cap on the accelerated cashback rate each quarter. This means you can earn a maximum of $75 in cash back each quarter at the higher rate before your earning rate drops to 1%.
Also know, to apply for this card, you must be at least 18 years old, have a U.S. address, have a Social Security Number and show proof of education.
Sign-up bonus: up to $69 in statement credits for Amazon Prime Student when you use your card to sign up for a subscription
Earning rate: 1% unlimited cash back on ALL purchases.
Why we picked this card: The Deserve® EDU Mastercard for Students may appeal to international students because it doesn’t require a Social Security number for approval. The card earns modest cash back rewards, but it does offer a free year of Amazon Prime Student and cellphone protection.
| Pros | Cons |
|---|---|
Doesn't require a Social Security number to apply $0 annual fee Cash back rewards Free Amazon Prime Student for a year | High APR Balance transfers are not allowed Low rewards rate |
The Deserve® EDU Mastercard for Students is a great financial tool for international students studying at U.S. colleges.
While most credit cards require a Social Security number to apply, international students can apply for the Deserve® EDU Mastercard for Students without one. Just know, you won’t build credit history until you link an SSN.
Sign-up bonus: up to $69 in statement credits for Amazon Prime Student when you use your card to sign up for a subscription
Earning rate: 1% unlimited cash back on ALL purchases.
Why we picked this card: The Deserve® EDU Mastercard for Students may appeal to international students because it doesn’t require a Social Security number for approval. The card earns modest cash back rewards, but it does offer a free year of Amazon Prime Student and cellphone protection.
| Pros | Cons |
|---|---|
Doesn't require a Social Security number to apply $0 annual fee Cash back rewards Free Amazon Prime Student for a year | High APR Balance transfers are not allowed Low rewards rate |
The Deserve® EDU Mastercard for Students is a great financial tool for international students studying at U.S. colleges.
While most credit cards require a Social Security number to apply, international students can apply for the Deserve® EDU Mastercard for Students without one. Just know, you won’t build credit history until you link an SSN.
Sign-up bonus: Earn a $200 bonus on your Upgrade Card after opening a Rewards Checking account and making 3 debit card transactions. See Details*
Earning rate: 1.5% unlimited cash back on card purchases every time you make a payment
Why we picked this card: The Upgrade Cash Rewards Visa® has a $0 annual fee and earns unlimited 1.5% cash back on all purchases when you pay down your card balance. You can qualify for a credit line of up to $25,000, depending on your credit. New cardholders can also earn a $200 bonus on your Upgrade Card after opening a Rewards Checking account and making 3 debit card transactions. See Details*
| Pros | Cons |
|---|---|
High cash back rate $0 annual fee Foreign transaction fees: $0 | Sign-up bonus requires opening a checking account Potentially high APR |
The Upgrade Cash Rewards Visa® is a good option for individuals who want the convenience of a credit card with the predictable payments of a personal loan. It works differently than most cards do: If approved for a card, you’re assigned a line of credit between $500 and $25,000 and installment terms of up to 60 months, like a loan.
You can make purchases with your Upgrade card or have funds transferred directly into your bank account from your credit line. At the end of the month, any charges or withdrawals are split into fixed monthly payments. While the card doesn’t offer a 0% intro APR, its unique payment structure can help you develop responsible payment habits. It’s also a solid choice for those with poor credit who want to make a large purchase and pay for it over time without hidden fees.
Sign-up bonus: Earn a $200 bonus on your Upgrade Card after opening a Rewards Checking account and making 3 debit card transactions. See Details*
Earning rate: 1.5% unlimited cash back on card purchases every time you make a payment
Why we picked this card: The Upgrade Cash Rewards Visa® has a $0 annual fee and earns unlimited 1.5% cash back on all purchases when you pay down your card balance. You can qualify for a credit line of up to $25,000, depending on your credit. New cardholders can also earn a $200 bonus on your Upgrade Card after opening a Rewards Checking account and making 3 debit card transactions. See Details*
| Pros | Cons |
|---|---|
High cash back rate $0 annual fee Foreign transaction fees: $0 | Sign-up bonus requires opening a checking account Potentially high APR |
The Upgrade Cash Rewards Visa® is a good option for individuals who want the convenience of a credit card with the predictable payments of a personal loan. It works differently than most cards do: If approved for a card, you’re assigned a line of credit between $500 and $25,000 and installment terms of up to 60 months, like a loan.
You can make purchases with your Upgrade card or have funds transferred directly into your bank account from your credit line. At the end of the month, any charges or withdrawals are split into fixed monthly payments. While the card doesn’t offer a 0% intro APR, its unique payment structure can help you develop responsible payment habits. It’s also a solid choice for those with poor credit who want to make a large purchase and pay for it over time without hidden fees.
Sign-up bonus: N/A
Earning rate: Unlimited 5% cash back on hotels and rental cars booked through Capital One Travel
Why we picked this card: Capital One Spark Classic for Business is a basic $0-fee business credit card, but it provides enough benefits and features that make sense if you’re a business owner. It also earns a modest 1% cash back on all purchases, which isn’t bad for a card that only requires a fair credit score.
| Pros | Cons |
|---|---|
$0 annual fee Foreign transaction fees | High APR Low cash back rate No bonus rewards rates for business spending categories |
Capital One Spark Classic for Business is for business owners and entrepreneurs who want to build their credit without paying a fee. The card comes with a $0 annual fee and access to many business tools, including free employee cards, account managers, compatibility with accounting software and more.
Sign-up bonus: N/A
Earning rate: Unlimited 5% cash back on hotels and rental cars booked through Capital One Travel
Why we picked this card: Capital One Spark Classic for Business is a basic $0-fee business credit card, but it provides enough benefits and features that make sense if you’re a business owner. It also earns a modest 1% cash back on all purchases, which isn’t bad for a card that only requires a fair credit score.
| Pros | Cons |
|---|---|
$0 annual fee Foreign transaction fees | High APR Low cash back rate No bonus rewards rates for business spending categories |
Capital One Spark Classic for Business is for business owners and entrepreneurs who want to build their credit without paying a fee. The card comes with a $0 annual fee and access to many business tools, including free employee cards, account managers, compatibility with accounting software and more.
Sign-up bonus: $60 Amazon Gift Card upon approval
Earning rate: Prime cardholders can earn 5% back at Amazon.com
Why we picked this card: The Amazon Prime Store Card earns a generous cash back on Amazon.com purchases for eligible Amazon Prime members. You can also earn additional cash back on select Amazon purchases in rotating product categories throughout the year.
| Pros | Cons |
|---|---|
$0 annual fee High cash back rate on Amazon purchases Sign-up bonus | Must be an Amazon Prime member to earn cash back rewards High APR |
The Amazon Prime Store Card is for Amazon prime members that regularly shop online at Amazon.com and want to earn cash back on their purchases, and also great for those making large purchases with the retail giant.
Sign-up bonus: $60 Amazon Gift Card upon approval
Earning rate: Prime cardholders can earn 5% back at Amazon.com
Why we picked this card: The Amazon Prime Store Card earns a generous cash back on Amazon.com purchases for eligible Amazon Prime members. You can also earn additional cash back on select Amazon purchases in rotating product categories throughout the year.
| Pros | Cons |
|---|---|
$0 annual fee High cash back rate on Amazon purchases Sign-up bonus | Must be an Amazon Prime member to earn cash back rewards High APR |
The Amazon Prime Store Card is for Amazon prime members that regularly shop online at Amazon.com and want to earn cash back on their purchases, and also great for those making large purchases with the retail giant.
| Credit Card | Welcome Offer | Rewards Rate | Annual Fee | Intro Purchase APR | Regular APR | Intro Balance Transfer Rate | Regular Balance Transfer Rate | Balance Transfer Fee | Recommended Credit | Card Review |
|---|---|---|---|---|---|---|---|---|---|---|
|
Capital One Platinum Credit Card
|
No bonus | Non-rewards Card | $0 | N/A | 29.74% (Variable) | N/A | 29.74% (Variable) | $0 at this Transfer APR | Fair/Limited | Capital One Platinum Credit Card Review |
|
AvantCard Credit Card
|
None | Non-rewards card | $59 | N/A | 29.49% | N/A | N/A | N/A | Fair/Poor/Limited | AvantCard Credit Card Review |
|
Petal® 2 Cash Back, No Fees Visa® Credit Card
|
N/A | Earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants | $0 | N/A | Variable APR between 17.49% - 31.49% | N/A | N/A | None | N/A | Petal® 2 Cash Back, No Fees Visa® Credit Card Review |
|
Capital One QuicksilverOne Cash Rewards Credit Card
|
No bonus | 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply) | $39 | N/A | 29.74% (Variable) | N/A | 29.74% (Variable) | $0 at this Transfer APR | Fair/Limited | Capital One QuicksilverOne Cash Rewards Credit Card Review |
|
Discover it® Student Cash Back
|
Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match. | 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically | $0 | 0% Intro APR for 6 months on purchases | 17.49% - 26.49% Variable APR | 10.99% Intro APR for 6 months | 17.49% - 26.49% Variable APR | 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)* | Fair/Limited | Discover it® Student Cash Back Review |
|
Deserve® EDU Mastercard for Students
|
up to $69 in statement credits for Amazon Prime Student when you use your card to sign up for a subscription | 1% unlimited cash back on ALL purchases | $0 | N/A | 22.99% variable | N/A | N/A (Balance Transfers are not available) | N/A (Balance Transfers are not available) | Excellent/Good/Limited | Deserve® EDU Mastercard for Students Review |
|
Upgrade Cash Rewards Visa®
|
Earn a $200 bonus on your Upgrade Card after opening a Rewards Checking account and making 3 debit card transactions. See Details* | 1.5% unlimited cash back on card purchases every time you make a payment | $0 | N/A | 14.99% - 29.99% APR | N/A | N/A | N/A | Fair | Upgrade Cash Rewards Visa® Review |
|
Capital One Spark Classic for Business
|
N/A | Unlimited 5% cash back on hotels and rental cars booked through Capital One Travel | $0 | N/A | 29.74% (Variable) | N/A | 29.74% (Variable) | N/A | Fair | Capital One Spark Classic for Business Review |
|
Amazon Prime Store Card
|
$60 Amazon Gift Card upon approval | Prime cardholders can earn 5% back at Amazon.com | $0 | N/A | 29.99% | N/A | N/A | N/A | N/A | Amazon Prime Store Card Review |
An unsecured credit card is a credit card that doesn’t require a security deposit or collateral to secure a credit line. Instead, the card issuer performs a hard credit inquiry to determine your creditworthiness. You must meet an unsecured card’s credit and other requirements to be approved (though these requirements generally aren’t published publicly).
The primary difference between unsecured and secured credit cards is that unsecured cards rely on a credit inquiry to determine eligibility, while secured credit cards are secured through a security deposit.
Secured credit cards are typically associated with individuals with poor credit or little to no credit. On the other hand, there are unsecured credit card options for individuals across all credit ranges, from poor credit up to excellent credit.
Aside from the security deposit, the benefits offered by unsecured and secured credit cards are similar. Both card types can help you build credit through responsible use. You can earn rewards with both types of cards, although unsecured credit cards generally offer better rewards and perks.
| Unsecured credit cards for bad credit | Secured credit cards | |
|---|---|---|
| Require a security deposit | ||
| Often come with high fees | ||
| Credit limit based on your deposit | ||
| Credit limit based on your credit history | ||
| Can earn rewards | ||
| Report payment history to credit bureaus |
Tip: Secured credit cards tend to have more reasonable rates and fees than unsecured credit cards geared toward individuals with poor credit. They also tend to cost less money to own in the long run, and you can get your deposit refunded with responsible use. If you have a low credit score, we suggest you check out the best secured credit card options before applying for an unsecured credit card.Unsecured credit cards are best for applicants who have high enough credit scores to get approved for offers with reasonable rates and fees. Typically, cardholders with fair credit (a credit score of 580 or higher) can qualify for these types of offers.
If you have poor credit, you may struggle to get approved for an unsecured credit card with good terms. Unsecured cards for bad credit often come with expensive fees and/or confusing terms. You may want to consider a secured card, like the OpenSky® Secured Visa® Credit Card. The card is available to people with poor/limited credit, and doesn’t require a credit check for approval. The card does, however, require a refundable security deposit starting at $200.
Open a secured card first and use it responsibly, making on-time payments each month to build up your credit score.
Apply through a bank, credit union or store
Applying for a credit card through a financial institution or business you already have a working relationship with may boost your chances of approval. Plus, many store cards come with lower credit requirements (beware, though, as they often have high interest rates).
Pay your bills on time
Few factors can affect your credit as much as payment history. By paying your bills on time, you may build up a strong enough credit history to qualify for a good unsecured credit card.
Pay off debt
Another factor that greatly affects your credit is your credit utilization ratio. It’s the amount you owe to the total credit line at your disposal. Experts recommend spending less than 30% of your credit limit at any given time, but you may improve your credit even more by lowering your ratio further.
Prequalify
Some card issuers allow you to check eligibility for a card before officially applying for it. Prequalification relies on a soft credit inquiry, which doesn’t affect your credit score, and lets you know whether your credit is good enough to get an unsecured credit card.
Whether you apply for a secured or an unsecured card, it’s important to use it responsibly in order to build a positive credit history. This includes:
A 500 credit score limits your options considerably, but it’s still possible to qualify for an unsecured credit with a score this low. Look for cards that allow you to prequalify for approval without affecting your credit score.
Store credit cards and credit cards with your banker are generally the easiest cards to qualify for, since you likely already have an established relationship with the business. Student credit cards are also known for accepting consumers with little to no credit history.
Some credit card issuers allow you to upgrade from a secured credit card to an unsecured card after meeting specific account milestones, like a number of consecutive on-time monthly payments.
You can still qualify for some unsecured credit cards with bad credit. These cards typically come with higher interest rates and fewer benefits and perks.
You can build credit the same whether you have a secured or unsecured credit card by spending responsibly and paying off your card balance on time each month. Both card types report monthly payments to the three major credit bureaus.
To select the best card for each of these categories, our credit card experts compared unsecured credit cards designed for individuals with poor, limited or nonexistent credit on LendingTree.com and issuer sites.
We chose our top picks based on a variety of factors, including the value of the card’s rewards program, the annual fee and the interest rate.
Other factors that come into play when making our selection include the benefits offered by the card, as well as the opportunity to increase your credit line or improve your credit score.
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply
The above offers and/or promotions may have since changed, expired, or is no longer available. Check the Issuers’ website for more details.
