Best Unsecured Credit Cards for Bad Credit 2021
Below is a list of the best unsecured cards (with no deposit requirements) that those of you with bad credit should consider. Though these card do not require a security deposit (like secured credit cards), any annual fee will be billed in your first credit card statement.
Updated On 21 September 2021
Merrick Bank Double Your Line Platinum Visa Credit Card
Who is this card for? - The Merrick Bank Double Your Line Visa is an unsecured credit card for rebuiders who have at least 620 credit score and have been rebuilding for a couple of years. The profile of those who are approved have no late payments for at least 2 years and very few hard inquiries over the last year. You should also ideally have an income of at least $50,000 for 2 years.
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.
Annual Fee: $0-$72
Regular APR: 23.45% - 28.45%
Starting Credit Limit: $500 - $1,250
Read our
review of the Merrick Bank Double Your Line Platinum Visa
Mission Lane Visa Credit Card
Who is this card for? - The Mission Lane Visa Credit Card is for those who have a credit score of between 550 and 650. Those who have been discharged of a bankruptcy can also apply. What Mission Lane is picky about is your overall debt levels. For those who only have credit card tradelines, it must not exceed $20,000. For those who have a mortgage, total debt (ie mortgage plus other debts like credit card debt or student loan debt) cannot exceed $80,000. Aside from these criteria, you should also have been paying on time for a year and have no more than 2 hard inquiries during the last 6 months.
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.
Annual Fee: $59
Regular APR: 29.99%
Starting Credit Limit: $300 - $1,000
Read our
review of the Mission Lane Visa
Reflex Mastercard
Who Is this card for? - Reflex Mastercard is another unsecured credit card that you might want to consider if your credit score is in the 550-650 range. 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. You will also be evaluated for a credit line increase after 7 months. This is one of the few cards that will give you an opportunity to get $1,000 in starting credit limits. They also have track record to increasing your limits over time.
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.
Annual Fee: $0-$72
Regular APR: 23.45% - 28.45%
Starting Credit Limit: $300 - $1,000
Read our
review of the Reflex Mastercard
Indigo Mastercard
Who Is this card for? - The Indigo Mastercard is for folks with credit scores from 550-650. You would ideally have been paying your bills on time for the last year. They are very particular about having too many recent inquiries. You will be denied an offer if you have had more than 2 hard inquiries during the last 6 months. In addition, we suggest having no more than $30,000 in total credit card debt to improve your chances of approval.
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.
Annual Fee: $0-$99
Regular APR: 24.99%
Starting Credit Limit: $300
Read our
review of the Indigo Mastercard
Fit Mastercard
Who Is This Card For? - The Fit Mastercard is an unsecured card that is ideal for those of you will scores in the 500 area. You should have no late payments for a year and very little inquiries as well.
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.
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
Revvi Visa Credit Card
Who is Revvi Visa for? - Revvi Visa is an unsecured credit card for those of you with a credit score randing from 540 - 600. To increase your odds of approval, you should have been rebuilding for at least a year and have been paying on time with no late payments or any new delinquencies. If you cannot mee these criteria, then perhaps it is better to get a secured credit card to start your rebuilding efforts.
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.
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
First Digital Mastercard
Who Is it For? - The First Digital Mastercard is also folks who have a credit score between 550 and 590 (which is the sweet spot). Like the two cards mentioned above, you should ideally have been rebuilding for year and have been paying on time with no delinquencies for the last 12 months. You would also ideally not have too many hard inquiries in your credit report during the past year as well.
What We Like - What we like about First Digital is that lots of applicants get approved when they apply from our site.
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
What You Get Realistically Expect To Be Approved
Depending on your score, and perhaps your income and whether you have had no late payments for a certain period of time (like say a year and a half), you may be approved for unsecured cards with different characteristics. The table below summarizes what type of unsecured card you can realistically expect to get based on your credit scores.
| Score Range |
Expected Features |
Example Cards |
| >Above 600 |
- No or Low Annual Fee
- No Monthly Maintenance Fee
- No One-Time Application Fee
|
|
| 525-625 |
- Annual Fee
- Monthly Maintenance Fee
- May include one-time application fee
|
|
| 300-525 |
- Online Store Cards
- No credit checks
- Can only be used at online stores
|
|
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.
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.
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.
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.
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.
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