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.

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 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.

• Start with a secured credit card

  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:

1. Paying on time and in full each month. Paying your credit card bill on time is the most important thing you can do for a good credit score. Plus, by paying in full by the statement due date, you can avoid interest charges.
2. Keeping your card account active. You need to actually use your card so that the payment activity can be reported to the credit bureaus. A good way to do this is to put a recurring charge on your card (like a Netflix or Spotify subscription), then set up automatic payments so your bill is always paid in full and on time.
3. Not overspending. Maxing out your credit card will hurt your credit score, so it’s best to use less than 30% of your available credit. For example, with a $300 credit limit, don’t use more than $90 of it each billing cycle. This also helps prevent taking on a large amount of credit card debt.

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