Unsecured Credit Cards for 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 (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.

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 cards like the Fingerhut Credit Account that might approve you for that score. There are also other online store unsecured credit cards like Horizon Gold 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.

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.

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.

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 Fingerhut.

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.

See our recommended list.

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.