Unsecured credit cards are very crucial as they play a major role in our daily lives. If you experienced some failures in the past to keep your obligation to pay up, then you’ll find yourself wondering if it’s still possible to get unsecured credit cards for bad credit. If you are not familiar with the term, unsecured credit cards are the common type of credit card that most people have. They don’t require any collateral in order to obtain, with no security deposit or limitations based on collateral available. Therefore, if you manage to acquire one despite bad credit, they are really beneficial. You can actually use them to your advantage to build a credit score by being responsible with your credit card, as this in turn awards you with good credit reports, and hence good credit scores in the long run.
Why Should You Consider Unsecured Credit Cards?
Unsecured credit cards bring with them a variety of benefits. For instance, they have considerably large credit limits; they offer lower interest rates and fees making them very affordable to possess; and there are a large number of them to choose from. When you are acquiring your unsecured credit cards for bad credit with no deposit, you obviously want to go for those that offer you low interest, greater benefits and rewards, and that safely balance your transfer deals and cash needs. The alternative, since unsecured credit cards for people with bad credit aren’t always available, is to seek out a guaranteed approval credit card or secured credit card.
What Types of Unsecured Credit Cards Exist?
There are many types of unsecured credit cards that exist. Some examples include:
- Bank-issued cards, including rewards cards, under the Visa, MasterCard, Discover, and similar banners.
- Merchant credit or charge cards, some of which are usable only at the issuing merchant, whereas others are usable anywhere their issuer’s logo is accepted (examples include Target, Amazon, Macy’s, and other merchant credit cards).
- Some student credit cards may be unsecured, though the vast majority are usually secured cards.
- Business credit cards.
- Promotional or pre-paid cards.
These are just some examples of the most popular types of unsecured credit cards. The exact range of what may be available to you will depend greatly on your credit score, and to a lesser extent your income. Lower credit scores will have fewer options, and a lower chance of approval, compared to higher credit scores. The best cards, usually Platinum or other fancy-sounding cards, are usually reserved for those with credit scores above 650 or even above 700. There may be other requirements as well in terms of annual fees, amount charged per year, and so on. Usually, most people with credit scores of at least 570 can apply for the vast majority of unsecured credit cards available on the market today
What are the Best Unsecured Credit Cards for Bad Credit?
Below, we highlight ten of the best unsecured credit cards for bad credit, that are generally easy to apply for, with generous benefits and rewards and a reasonable credit limit for most customers.
Capital One ® MasterCard ®
You can simply apply for this unsecured credit card for bad credit online. Capital One is a leader in consumer credit cards in the US, and offers generous credit lines and terms, along with competitive interest rates.
Amazon.com Store Card
You can easily apply for the card by searching the name online, and filling in the application. It requires a minimum credit score of 600 and comes with no annual fees. It’s good when it comes to offering its clients rewards and discounts on purchases.
Credit One Bank ® Visa®
This card comes with no processing fee, although it does requires you to pay an annual fee. However, advantages depend on your credit profile and you can earn interest and rewards on all your purchases.
Total Visa® Card
This card possesses a fast and easy application process where you get your approval reply in seconds. It can work globally despite the fact that you have to pay an annual fee and a program fee, which can be a bit much for some users.
Indigo® MasterCard ®
With this card, you do not have to pay any processing fees, just an annual fee. The annual fee depends on your credit profile. Like most cards on this list, you can easily complete the application online, and requirements are quite easy to meet.
Bank of America Power Rewards ® Visa® Card
As the largest bank in the US, Bank of America Power Rewards cards are backed by solid customer service, with a ton of reward options for redemption on the points you earn. Part of the Visa network, it can be used throughout the world. Applications and management can be made online or through their app.
Wells Fargo ® Propel American Express ® Card
Another leading US bank, Wells Fargo, offers the Propel American Express card, which is designed around travel-focused rewards. There is no annual fee, and no foreign currency or conversion fees, either. Earn reward points on all the popular travel expenses like airlines, hotels, dining out, and so on. It’s designed for credit scores mostly in the high 600s and up.
Target RED Card
You need a minimum score of 500 to acquire this card. You can easily apply and acquire it online or at Target store locations. Then, you’ll get to enjoy 5% discounts on most of your Target purchases, and the card comes with no annual fee.
Chase ® Freedom Unlimited Visa ® Card
This card from Chase, another leading US bank, offers some of the best cash back rewards available today. Earn an unlimited 1.5% cash back on all purchases, along with 0% introductory interest rate and special promotions during the first few months of use. There’s no annual fee, and you can apply online.
Firestone Credit Card
This card allows you to enjoy no annual fees and at the same time offers you monthly deals and coupons. Although it does not offer any purchase rewards, you can easily apply and access it online.
Can You Use an Unsecured Credit Card to Build Your Credit?
Unsecured credit cards are a great way to repair and build your credit profile and credit score. Of course, you do need to do some research on the unsecured credit cards you are looking at, especially if you already have bad credit. Your available options for unsecured credit cards for people with bad credit may be more restricted, and they often come with different benefits compared to cards aimed at high-credit-score individuals.
Likewise, some unsecured credit cards aren’t meant to help with your credit. They are the minority, but they do exist, so you need to ensure that your bank or issuer reports to the major three credit bureaus. Then, you need to make sure you make at least your minimum monthly payments (ideally more), and try to keep your credit line utilization as low as possible in order to boost your credit score.
How Do You Apply for an Unsecured Credit Card?
There are various and distinct reasons why you might want to apply for a credit card. For example, maybe you are starting or are in business but you faced some problems keeping up with your payments. Now, you find yourself wondering if there are unsecured business credit cards for bad credit that you can apply for and how to go about this. Or, maybe you are just an individual with a low credit score and you want to know how you can successfully apply for unsecured cards for bad credit. There are two major ways you can do this: going to the bank/store who issues the card, or applying online. Below are the basic steps for applying for a card online.
- Do Your Research
Search for credit card companies that meet your requirements. There are various companies that offer unsecured credit cards for people with bad credit or unsecured business credit cards for bad credit. Read reviews, do some searching, and make sure any lender you choose has a good reputation and meets your needs.
- Compare Your Options
Look at the different fees, rates, and rewards that each company offers. Also make sure to compare between benefits, discounts and of course the credit limit. It’s advisable to opt for bigger credit card companies that’ll provide you with cards that won’t offer you problems in the future as you utilize them.
- Fill Out the Application
After selecting your preferred company and card, you can go ahead and fill in the application. Make sure to review it to eliminate any possibility of mistakes, which can delay approval.
- Submit and Wait
It’s as easy as that. After the completion of your application, you can easily click the submit button. Now, all you have to do is to sit back and relax while you wait for a response. Approval time varies by lender, with some offering near-instant approval, while others may take a few days to respond.
In conclusion, it’s very much possible for you to get your unsecured credit card despite a bad credit history. You only need to do your research so that you get the card that best fits your requirements and lifestyle. Also, a helpful tip: make sure to not apply for multiple cards at the same time as this can negatively affect your credit score. Good luck!