Best Unsecured Credit Cards for Limited Credit in May 2025

An unsecured credit card is a credit card that doesn’t require a security deposit. Typically, the credit card company (or issuer) will perform a hard credit inquiry to decide whether to approve you for the card.

Typically unsecured credit cards are easiest to get if you have good or excellent credit. However, there are some unsecured credit cards for bad credit.

Although you can get an unsecured credit card with bad credit, note that the APR may be high and the card may not come with a sign-up bonus or rewards program. However, if used responsibly, the following cards can help you build credit.

The primary difference between unsecured and secured credit cards is that secured cards require a security deposit. Because of this, secured credit cards often have lower credit requirements because they can use your security deposit to offset the loss if you don’t make payments on your card.

Aside from the security deposit, secured credit cards work just like unsecured credit cards. Both allow you to make purchases and pay them at a later date. Both can help you build credit through responsible use. You can also earn rewards with both types of cards. However, secured cards tend to have more reasonable fees and better rewards programs than unsecured credit cards for poor credit.

In the table below, you can see the difference between an unsecured credit card and a secured credit card. While the Merrick Bank Double Your Line^® Mastercard^® doesn’t require a security deposit upfront, you have to pay up to $147 in fees to open an account. And, you’ll have to pay up to an annual fee of $72 each year after that.

In just two years, the cost of having the Merrick Bank Double Your Line^® Mastercard^® will exceed the $200 deposit you would have to pay to open the Capital One Quicksilver Secured Cash Rewards Credit Card. And these fees are nonrefundable (plus you won’t earn any rewards). With the Capital One Quicksilver Secured Cash Rewards Credit Card, you’ll come out ahead because your security deposit can be refunded at some point, and you earn cash back rewards.

If you are able to put down a security deposit, a secured card may be the better way to go:

• Secured cards are generally more affordable and offer the same credit-building opportunities.
• Security deposits are refundable if your account is in good standing.
• Many issuers let you graduate to an unsecured credit card.
• Some cards, like the OpenSky^® Secured Visa^® Credit Card, don’t require a credit check.

A FICO Score between 300 and 579 is considered “poor credit” — however, two other terms that are often used around this credit range are “bad credit” and “limited credit.”

A person with a limited credit history is thought of as having poor credit because they are credit invisible. They haven’t used credit enough to build their credit score higher. Young adults and newcomers to the United States are most likely to have limited credit histories.

Someone who has suffered financial hardships, causing their credit score to drop into the “poor” range, has “bad credit.” They may have had very good credit at once but, for example, had a medical event that caused them to fall behind on their auto loan or take on additional credit card debt.

FICO Score ranges

Whether you want to rebuild your credit or just need a card that’s easy to get, we’ve broken down the different types of credit cards for bad credit and limited credit below.

• Start with a secured credit card

  Open a secured card first and use it responsibly, making on-time payments each month to improve 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 increase 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 affect your credit as much as payment history. By paying your bills on time, you can build up a strong credit history and qualify for a good unsecured credit card.

• Pay off debt

  One of the best ways to boost your credit score is to pay off credit card debt. Your credit utilization ratio — how much you owe divided by your total credit limit — makes up a significant part of your credit score.

• Prequalify

  Some card issuers allow you to check if you are prequalified for a credit 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. This also helps prevent credit card debt.

It’s not always easy to get unsecured credit cards if you have poor, limited or bad credit. If you apply for an unsecured credit card and aren’t approved, consider one of the following options:

• Open a secured credit card. Secured credit cards usually have lower qualification requirements since your deposit acts as your line of credit.
• Being added as an authorized user. Piggyback off of the good credit of a family member by being added as an authorized user on their account.
• Prequalify for an unsecured credit card. Getting preapproved or prequalified for a credit card can help you determine if you have a good chance of being approved for a credit card.