Below is a list of our best recommendations of unsecured credit cards for bad credit folks. Both Experian and Equifax define having bad credit as having low scores of 580 and below and these cards are suitable for those of you with such credit scores. Unlike secured credit cards, unsecured credit cards do not require security deposits. However, they tend to come with higher fees like annual fee and even a monthly fee. Their starting credit limit also tend to start at the low end (around $300) though most unsecured credit cards will increase your limits over time if you pay on time and watch your credit utilization ratio.
We have divided our recommendations into three groups based on the credit score required. The first group of unsecured credit cards are for those with at least 570 or 580 credit scores. These cards tend to have more generous limits and only charge an annual fee (no monthly fee or processing fee). They also tend to have a better track record of increasing your credit limits as soon as 6-7 months if you pay your bills on time during this period.
The second group of recommended cards are for those with scores from 525 to 570 area. These cards come with both an annual fee and monthly fee as issuers have to be compensated for issuing card to those of you in this score range.
The third group is for those who have 500 credit scores or below and these cards do not perform any credit checks. Instead, they will criteria like having a certain monthly income or having a debit card as conditions for giving approval.
Best for credit score 570-580 and Above
Updated On 3 January 2022
Who is this card for? - The Merrick Bank Double Your Line Visa is an unsecured credit card for rebuilders who have at least 580 credit score and have been rebuilding for a couple of years. Ideally, your credit score should be above 600. This card is ideal for those who are either ready to go from a secured credit card to an unsecured credit card in their rebuilding efforts or for those who are looking for an unsecured credit card with lower fees and a decent credit line.
Why we like this card? - For those who get approved for this card, you get an initial credit limit between $550 and $1,350. After paying on time for 7 months, your credit limit will double. That means your new credit limit after 7 months will range from $1,100 to $2,700. The annual fee ranges from $0 to $72 so there is a chance that you will get a no annual fee credit card. Aside from the credit line increase after 7 months of on-time payment, Merrick Bank has a track record of increasing your credit lines even after that initial increase.
Requirements: Below are the requirements for Merrick Bank
- Credit score of at least 580 - preferably 600 or above
- No delinquencies or late payment for at least 2 years
- Past collections or charge-offs should be settled
- Debt (excluding mortgage) not more than $20,000
Annual Fee: $0-$72
Regular APR: 19.7% - 29.95%*Variable
Starting Credit Limit: $550 - $1,350
Credit Limit after 7 months of timely payments: $1,100 - $2,700
Read our review of the Merrick Bank Double Your Line Platinum Mastercard
Who is this card for? - The Mission Lane Visa Credit Card is for those who have a credit score of between 570 and 650 and who would like to get credit limit increases. It is also ideal for those who have been discharged of a bankruptcy can also apply. It is also ideal for those who have secured credit cards and are ready to move on to an unsecured credit card with reasonable fees and credit limit or for those who have more "predatory" high fee credit cards and want to get a card with much lower fees.
Why we like this card? - The reason why we like this card is because after paying on-time for the first six months, you will be eligible for a credit limit increase. For many cardholders, they see their credit limit double after the first six months of on-time payments. Furthermore, Mission Lane also has a track record of further credit limit increases after that initial increase.
Requirements
- Minimum credit score of 570 to 650
- Total Debt (including mortgage) cannot exceed $80,000 if you have a mortgage
- Total Debt cannot exceed $20,000 if you have no mortgage
- No late payments or delinquencies for last 2 years
- No more than 2 hard inquiries during the last 6 months
- Old collections and charge offs should be settled
Regular APR: 29.99%
Starting Credit Limit: $300 - $1,000
Read our review of the Mission Lane Visa
Who Is this card for? - Reflex Mastercard is for those who have credit scores in the 550-650 range and would like to have quick credit line increases from their card. With the Reflex Mastercard, this is possible because after paying on time for the first 7 months, your credit limit will be doubled from a starting credit limit of between $300 to $1,000 to between $600 to $2,000. It is also a card for those who want features like free credit scores and the ability to manage your account from an app.
Why We Like This Card - We like this card because they have modern features that most prime cards have. For example, they have a slick mobile app, let's you check your Vantage score for free and more importantly, have a track record of credit limit increases. Their fees and rates come in a range so that those of you on the "upper end" of the bad credit spectrum (620-640 score) will get low fees, high credit limit and a lower APR. However, those of you on the lower end of the "bad credit spectrum" (550-600) will have a higher chance of approval though you may have to pay higher fees.
Requirements
- Minimum credit score of 570
- Total Debt (including mortgage) cannot exceed $80,000 if you have a mortgage
- Total Debt cannot exceed $20,000 if you have no mortgage
- No late payments or delinquencies for last 2 years
- No more than 2 hard inquiries during the last 6 months
- Old collections and charge offs should be settled
Regular APR: 23.45% - 28.45%
Starting Credit Limit: $300 - $1,000
Credit Limit after 7 months: $600 - $2,000
Read our review of the Reflex Mastercard
Who Is this card for? - The Indigo Mastercard is for folks with credit scores from 570-650 who wants an unsecured credit card that comes with just an annual fee and has the possibility of getting an offer with no annual fee. It is also ideal for those who have just been discharged from bankruptcy, having their debts wiped out and starting from afresh again.
Why We Like This Card - We like this card because you have a chance of getting a card with no annual fee. Furthermore, card holders have reported that they report to the three major credit bureaus on time and consistently.
Requirements - Here are the requirements for approval of this card.
- Credit score of 570 to 650 area
- Not more than 2 inquiries during the last 6 months
- No late payments or delinquencies for at least 1 year
- Collections and charge offs should be settled
- Not more than $30,000 in total debt
Annual Fee: $0-$99
Regular APR: 24.99%
Starting Credit Limit: $300
Read our review of the Indigo Mastercard
Best for 520 - 570 Credit Score
Who Is This Card For? - The Fit Mastercard is for rebuilders who want an unsecured credit card that will give credit limit increases, will accept credit scores in the mid 500 FICO score area and will accept the fees that come with this card.
Why We Like This Card? - We like this card because it has modern features like mobile app, free credit scores and a track record of credit line increases. This is also one of the cards on our site with very good approval rates.
Requirements - Here are the requirements for approval of this card.
- Credit score of 550 area
- Checking account required - you should have your a/c and routing number available when you apply
- Not more than 2 inquiries during the last 6 months
- No late payments or delinquencies for at least 1 year
- Collections and charge offs should be settled
Annual Fee - $75 for the first year, then $48 thereafter.
Monthly Maintenance Fee - $0 for the first year, then $6.25 a month (which is $75 annually)
One-time Application Fee - $89
Regular APR - 34.99%
Starting Credit Limit - $400
Read our review of the Fit Mastercard
Who is Revvi Visa for? - Revvi Visa is an unsecured credit card for those with a credit score randing from 525 - 570, are looking for a card that has a cash back rewards program and will accept the fees that you have to pay for this card.
Why we like this card/ - One of the key reasons we like Revvi is because it has one of the highest approval rates for applicants from our site. If you are a rebuilder looking for an unsecured credit card rather than a secured card and you meet the criteria, then you should definitely consider this card.
Requirements - Here are the requirements for approval of this card.
- Credit score of 525 to 570
- Checking account required - you should have your a/c and routing number available when you apply
- Not more than 2 inquiries during the last 6 months
- No late payments or delinquencies for at least 1 year
- Collections and charge offs should be settled
- Not more than $20,000 in debt (excluding mortgage)
Annual Fee - $75 for the first year, then $48 thereafter.
Monthly Maintenance Fee - $0 for the first year, then $6.25 a month (which is $75 annually)
One-time Application Fee - $89
Regular APR - 34.99%
Read our review of the Revvi Visa Credit Card
Who Is it For? - The First Digital Mastercard is also folks who have a credit score between 520 and 570 (which is the sweet spot) and or do not want to get a secured credit card. You should also understand that someone with your credit score will have to pay slightly higher fees for an unsecured credit card and you are alright with this.
What We Like - What we like about First Digital is that lots of applicants get approved when they apply from our site.
Requirements - Below are the key requirements to get approved for this card.
- Credit score of 525 to 570
- Checking account required - you should have your a/c and routing number available when you apply
- Not more than 2 inquiries during the last 6 months
- No late payments or delinquencies for at least 1 year
- Collections and charge offs should be settled
- Not more than $25,000 in debt (excluding mortgage)
Annual Fee - $75 for the first year, then $48 thereafter.
Monthly Maintenance Fee - $0 for the first year, then $6.25 a month (which is $75 annually)
One-time Application Fee - $95
Regular APR - 35.99%
Read our review of the First Digital Mastercard
Best for 500 Credit Score and Below
Who is this card for? - Buy On Trust is for those who have really bad credit and do not want to incur another hard inquiry on their credit report. It is a lease to own electronics store where your products can be picked up at your nearest Best Buy Store. As there is no credit checks, Buy On Trust relies on you have a regular income of at least $1,000 for 3 months from the same source and having a banking or checking account with no overdraft history and no NSF. You can get a credit limit of up to $5,000.
Why we like this card? - We like this card because it can give you a very generous credit limit of up to $5,000 and they do not rely on your credit report and score to approve you. Instead, they rely on your income and on you having managed your checking account in a responsible way by not incurring overdrafts. Best of all, Buy On Trust is one of the rare lease to own electronics store that reports to all three major credit bureaus. With such a potential generous credit limit, you can actually purchase something significant with it rather than with a lower limit credit card.
Annual Fee: $0
Regular APR: varies
Starting Credit Limit: Up to $5,000
Read our review of Buy On Trust Lending
What You Get Realistically Expect To Be Approved
| Score Range | Expected Features | Example Cards |
|---|---|---|
| >Above 580 and above |
|
|
| 525 to 580 |
|
|
| 300-525 |
|
FREQUENTLY ASKED QUESTIONS
Can you get an unsecured credit card with bad credit?
Can you get an unsecured credit card with bad credit?
Yes, you certainly can. You will have to accept that an unsecured credit card when you have bad credit is different from one which you can get when you have good to excellent credit.
For example, do not expect to get a high starting limit. Many will start you off at $300 to $500 (though that can increase over time). You might have to pay an annual fee as well (though some have no annual fee). Some even charge one-time application fee and monthly fees on top of an annual fee.
Otherwise, having bad credit should not stop you from getting an unsecured credit card. In fact, it is good to get one to restart rebuilding your low scores.
For example, do not expect to get a high starting limit. Many will start you off at $300 to $500 (though that can increase over time). You might have to pay an annual fee as well (though some have no annual fee). Some even charge one-time application fee and monthly fees on top of an annual fee.
Otherwise, having bad credit should not stop you from getting an unsecured credit card. In fact, it is good to get one to restart rebuilding your low scores.
What unsecured credit card is easiest to get?
What unsecured credit card is easiest to get?
Well, it really depends on your credit score. If your score is very low (for example in the 400s), then it is not easy to get an unsecured credit card. However, there are online store unsecured credit cards like Net First Platinum that will approve you because they do not perform any credit checks.
If your credit score is in the high 500s or low 600s, then most unsecured credit cards targeting folks like you are more likely to approve your application.
If your credit score is in the high 500s or low 600s, then most unsecured credit cards targeting folks like you are more likely to approve your application.
What does it mean to have an unsecured credit card?
What does it mean to have an unsecured credit card?
Most credit cards are unsecured so having an unsecured credit card is just like having a regular credit card. If you have very low credit scores, you may not be able to get an unsecured card and may have to settle for a secured credit card instead. A secured credit card requires you to put down a security deposit (which is your credit limit) whereas for an unsecured credit card, your credit limit will depend on the issuers assessment of your credit score, income etc. For those of you with low credit scores, your initial credit limit for an unsecured credit card will most likely be between $300-$500.
How does an unsecured credit card work?
How does an unsecured credit card work?
As mentioned in the earlier question, most credit cards are unsecured credit cards and so an unsecured card simply works like a regular credit card.
When you apply for a regular unsecured credit card, you will have to tell the issuer your income, mortgage, rent etc and once you pull your credit score, they will either approve or reject your application. If you are approved, you will be given a credit limit.
You can only spend up to your credit limit every month. When your bill comes, you can either pay in full, pay the minimum or somewhere in between. If you do not pay your bill in full, you will be charged an interest on your balance.
When you apply for a regular unsecured credit card, you will have to tell the issuer your income, mortgage, rent etc and once you pull your credit score, they will either approve or reject your application. If you are approved, you will be given a credit limit.
You can only spend up to your credit limit every month. When your bill comes, you can either pay in full, pay the minimum or somewhere in between. If you do not pay your bill in full, you will be charged an interest on your balance.
What credit score is needed for an unsecured credit card?
What credit score is needed for an unsecured credit card?
For those of you with poor credit score, you usually need a score of at least 500 (preferably mid 500) to get approved for an unsecured credit card. There are some online store cards that you can get even with a 400+ score. An example would be Net First Platinum.
What is the difference between unsecured and secured credit card?
What is the difference between unsecured and secured credit card?
If you get a secured credit card, you will have to put up a security deposit with the issuer. The amount of your deposit becomes your credit limit. You will get back your security deposit when you close the card or when the secured credit card graduates to an unsecured credit card (which some issuers do).
With an unsecured credit card, you do not have to put a security deposit. Your credit limit will be given based on your score and income (although in the case of bad credit cards, the starting limit is typically very low).
The other main difference pertains to fees. Most secured credit cards either have no annual fee or charge a modest annual fee. Many unsecured credit cards for bad credit have annual fees, one-time application fees and monthly fees as well.
With an unsecured credit card, you do not have to put a security deposit. Your credit limit will be given based on your score and income (although in the case of bad credit cards, the starting limit is typically very low).
The other main difference pertains to fees. Most secured credit cards either have no annual fee or charge a modest annual fee. Many unsecured credit cards for bad credit have annual fees, one-time application fees and monthly fees as well.
What is the best unsecured credit card for bad credit?
What is the best unsecured credit card for bad credit?
See our recommended list.
Are there unsecured credit cards for poor credit with no deposit and instant approval?
Are there unsecured credit cards for poor credit with no deposit and instant approval?
For the record, unsecured credit cards require no deposit. Some of you will be approved instantly if the credit issuer finds everything ok with your application and you meet and fit their credit criteria. Some of you might get the 7-10 will get back to you message and have to provide additional information like W2, proof of identity etc.
Are there secured credit cards that report as secured?
Are there secured credit cards that report as secured?
Yes, there are. One of the best example is the Opensky Secured Credit Card. This card reports as unsecured and does not check your credit when you apply so you will definitely be approved.
What is a good unsecured credit card for bad credit?
What is a good unsecured credit card for bad credit?
Once again, see our recommended list. All I would say is that a good unsecured credit card if you have bad credit is one which has a reasonable annual fee and does not charge any one-time application fee and monthly fee. If you can get one with rewards, that is even better.