what is Unsecured Credit Card for Bad Credit?
Unsecured credit cards are ideal for people who want to get credit cards without making cash deposits. These cards have higher credit limits as card companies do not feel comfortable offering unsecured cards since it will be difficult to recover funds when people do not pay up their balances.
With this in mind, you will realize that it will be even more difficult for credit card companies to offer unsecured credit cards for people with bad credit scores.
The risk involved in issuing unsecured credit cards to people with bad credit has, however, not stopped card companies from issuing such cards. This means that even with a bad credit score, you can get a credit card without making a cash deposit.
top 10 best-unsecured credit cards for people with bad credit
Even with these cards, some have better offers than others. We have compared the card offers while taking the reviews of cardholders into consideration. Here is a list of the best unsecured credit cards for bad credit.
Fingerhut Credit Account
Your poor credit score is not a problem when you apply for this card. You can easily apply for this card and you will get a credit decision in minutes. Fingerhut also allows you to build your credit score since they report to all three credit reporting bureaus. You should try as much as possible to pay up your balances before each billing cycle ends. This will help you to build your credit history faster. You can use this card to shop in major brand shops such as KitchenAid, Sony, Samsung, Shark, LG, DeWalt, and Dell.
The annual fee charged on this card is $0. Which means there is no need for you to worry about annual fees. The Fingerhut card is issued by WebBank and they determine eligibility and the qualifications for the terms of credit.
Total VISA Credit Card
The Total VISA Unsecured credit card is another card that is worth mentioning. This card can also help you to build your credit score. You do not need to do anything out of the ordinary to build your credit history. You only need to use your card responsibly. You can complete Total VISA's card application quickly and get a response in no time. You will need to provide a checking account when you apply for this card. The card company checks if you are eligible for an increase in your line of credit. If you are eligible, they will increase your limit for free. Although the fees are not specified, you will pay a processing fee, annual fee, and late fee.
The initial line of credit offered by this card company is $300. You will get the opportunity to choose a custom card design for your card.
- Credit One Platinum VISA Card
This is another card that works for people with poor credit. The card is not only available for people with poor credit, but it also helps people with poor credit to build their credit history. You can check if you qualify for this card without harming your credit score.When you hold this platinum card, you will get free access to your Experian credit score and you can monitor your score. You can also pay your balances easily since you can choose the due date that will work for you. Credit One will offer you the opportunity to increase your line of credit if you use your card responsibly.
This may come at a fee. You will receive alerts on account update via text and email. When you sign up for this card, you will receive 1% on eligible purchases. The interest rate on this card ranges from 19.74% to 25.74%. The annual fee on this card ranges from $0 to $99.
You will not worry about fraud activities when your card gets stolen because the card company does not hold you responsible for unauthorized charges made to your card when it goes missing. You can access your account at any time through the mobile app.
- Indigo Platinum MasterCard
The Indigo Platinum MasterCard is a great card option for people who are struggling to get a credit card due to their poor credit. It is also recommended for people who have a bankruptcy history on their report. The card company does not disqualify applicants because they have recently filed for bankruptcy. This card is a relief for such people since most card companies do not offer them cards. You will get the chance to choose a design for your credit card. There is a gallery for you to choose from and this does not come at an extra cost. If you want to improve your credit history, Indigo Platinum MasterCard gives you the perfect opportunity to do that. Once you pay your balances on time, they will report to all three credit reporting bureaus and that will reflect in your history. In the same way, missed payments will also be reflected on your report so you are encouraged to be cautious with your card use.
One thing that attracts people to this card is the speed in the application process. You can apply easily and you will get a response to your application in minutes. You can always be assured when you use this card because there is a 0 fraud liability feature. With this feature, you will not be responsible for unauthorized charges on your card when it gets stolen. Since this card is backed by the MasterCard, it is accepted at locations where MasterCards are accepted.
- Milestone Gold MasterCard
This MasterCard is easy to apply for. Even if you have a poor credit score or a bankruptcy history, you can still apply for it. There is also a high chance of getting this card despite the shortcomings on your credit report. You can quickly check if you qualify for this card without damaging your credit score.You will receive an instant response to your application. Do you see a design that appeals to you, Milestone allows you to make a choice. You can also access your account online for free. When your card gets stolen or you lose it accidentally, you will not worry about fraud activities because Milestone Gold will protect you from authorized charges.
This card is accepted at over 35 million locations worldwide. You can also build your credit history if you make regular payments. Milestone Gold reports to the three main credit reporting bureaus.
The AvantCard along with other Avant product activities are issued by WebBank. With the AvantCard, the application process is a breeze. The card helps you to strengthen your credit history through regular payments.If you want to get a card to rebuild your credit history, this card is for you. When you get this card, there are no hidden fees. When it is time to make payments, you can conveniently do so through online banking. When you use this card, you get to enjoy 0 fraud liability when you use the card. It means that you will not be responsible for any kind of unauthorized charges. With this card, you will not pay less than $1.
- Capital One QuickSilverOne Cash Rewards Credit Card
This card is one the best-unsecured credit card with flat rate rewards. You can apply for this card even with bad credit. This card attracts an annual fee of $39. This card also attracts a variable APR of 24.99%. With this card, you will get to earn several rewards.You get to earn an unlimited 1.5% on all purchases made with this card. Capital One also reviews your account after five months to see if you are eligible for an increase in your line of credit. If you use your card responsibly, you are likely to get an increase in your credit limit. You will get easy access to your credit score. You will also get other benefits if you hold this card. You will enjoy auto rental insurance, extended warranty coverage, and travel accident insurance.
- Journey Students Rewards Credit Card
This card is offered by Capital One and it is designed with the average student in mind. When you get this card, you do not need to worry about annual fees since they do not charge annual fees. They charge a variable APR of 24.99% on this card. Journey Students Rewards Credit Card allows cardholders to enjoy 1% cash back rewards on all purchases. If you are able to pay your full balance early, the percentage on cash back rewards. The percentage will be increased to 1.25% in the next month if you make payments on time in the previous month.
Apart from the annual fees, Capital One also waives the foreign transaction fees. If you pay up your balances for the first five months, you will get the opportunity to increase your credit limit. The cash backs are not the only benefits that accompany the use of this card. You will enjoy other benefits such as travel accident insurance, extended insurance protection, and MasterRental coverage.
- Surge MasterCard
With this card, you can get an initial line of credit of $500. With their fast application process, you can get a response very quickly. You can use this card at locations where MasterCards are accepted. You will need a checking account to apply for this card. Since the card company reports to all three credit reporting bureaus, you will be able to build your credit history. You should remember to make regular payments on this card and this will help you to get credit cards with better offers. Although the fees have not been specified, you will need to watch out for annual fees. Other fees to watch out for include late fees, cash advance fees, foreign transaction fees, and balance transfer fees. You will also need to be cautious of APRs and other rates.
- Merrick Bank Double Your Line Credit Card
Merrick Bank allows you to check if you prequalify for this card. You will not harm your credit when you check if you pre-qualify. When you make minimum payments at the end of every month for the first seven months, your limit will be doubled.The card company will provide updates on your credit score at the end of every month. You will enjoy $0 fraud liability when you get this card. This means that you will not be responsible for unauthorized charges when you lose your card. There are no penalty rates or over the limit fees. You can access you your account via their mobile app at no cost.
All cards that have been mentioned above have one thing in common. That is, they help you build your credit history. They give you the opportunity to build a stronger history while using your card. Many people have strengthened your history through this means and once you make regular payments, you can also do same.
You should, however, note that once a credit company reports to credit bureaus, it will report missed payments if you miss a payment. That action can affect your credit score more than you can imagine.
Remember to always pay the minimum balance required before the billing cycle ends. You can also decide to pay the full balance so that you can avoid the purchase APR. Check your credit limit and make sure you do not go beyond the limit.
When it comes to choosing a credit card, make sure you choose one that suits your needs. For instance, if a card offers unlimited rewards on gas and groceries, you should only consider getting that card if you spend a lot of money on gas and groceries.
In that way, you can fully benefit from the cash back reward. You should also remember that an unsecured card may not offer you the package you want. If that is the case, consider getting a secured card.