Best Unsecured Credit Cards for Bad Credit

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If you have have credit scores of 630 and below, it is considered bad and to rebuild your credit, you can choose to either get a secured credit card or an unsecured credit card.

Unlike secured credit cards, unsecured credit cards do not require any security deposit though they tend to have higher fees. AskMrCreditCard.com has compared every unsecured credit card targeting those with poor credit and curated our recommendations. Our recommendations strikes a balance between low fees and decent credit limits.

Summary: Best Unsecured Credit Cards for Bad Credit

Card	Credit Limit	Why We Like
Arro Mastercard	$200 - $2,500	No Hard Inquiries, does not rely on FICO scores for approval
Upgrade Select Visa	$300 - $2,000	Low annual fee. Personal line of credit in a credit card
Reflex Mastercard	$300 - $1,000	Reputable customer service with a decent mobile app.
Surge Mastercard	$300 - $1,000	Good starting credit limit with reasonable fees.
Brightway Mastercard	$300 - $2,000	Maximum limit of $15,000.

Updated On 16 January 2025

Arro Mastercard - Does not rely on FICO scores

. No Hard Inquiries - The Arro Mastercard is at the top of our list for recommended unsecured credit cards because it does not rely on FICO scores to approve you. This is probably the biggest stumbling block for rebuilders. The fees are also very reasonable as you only pay $3/month (which works out to $36 annually). The maximum limit you can get on the card is a very respectable $2,500 and the APR is incredibly low at 16%.

Unique Feature - One of the most unique feature of this card is that credit limit increases are within your control. You will get credit limit increases when you complete certain financial literacy courses on their app. Completion of some courses will result in a decrease in your APR.

Approval Requirements - Arro does not rely on FICO scores and there is no hard inquiry. You need an monthly income of $1,000 and a minimum bank balance of $150. You also have to link your bank account to PLAID. Your credit limits will be based on the cash flow in bank cash account.

Why We Like and Recommend This Card? - We like the ARRO card because they do not look at your FICO scores to approve you but instead considers your monthly income and cash flow. The fees are low and so is the APR. Best of all, credit limit increases is within your control.

Fees - $1/month for the first year, then $3/month.
APR - 16%.
Credit Limit - $50 - $200, maximum credit is $2,500.
FICO score needed - Arro does not look at FICO scores. You need a minimum monthly income of $1,000 and a minimum positive bank balance of $50.

Read our review of the Arro Mastercard.

Upgrade Select Visa - $500 - $2,000 Credit Limit

Upgrade Select Visa - Loan in a credit card - The Upgrade Select Visa is actually a loan in a credit card. When you use the card to purchase something, Upgrade considers it a "draw" or a small loan given to you. And you will pay it back in equal installments over a couple of years at a fixed interest rate (rate and maturity will be determined when you apply).

Requirements - Applicants who get approved for the Upgrade Select Visa have FICO scores ranging from 580 to 640.

Why We Like and Recommend This Card? - We like the Upgrade Select Visa because it $39 annual fee is very low for an unsecured credit card that target those with poor credit in the 580 to 640 FICO score range. They also do not charge any monthly fee or any one-time program fee. The maximum credit limit of of $2,000 is also very generous for such a card. Upgrade is also different in that because you pay it back as a loan, there will be a fixed period where your balance will be paid off. Furthermore, because it is reported as an installment loan, utilizing the full credit limit given to you will not affect your credit utilization ratio in your credit report.

Annual Fee - $39
Credit Limit - $500 to $2,000
FICO Score Needed - 580-660. You would need a FICO score of at least 580 to get approved.

Read our review of the Upgrade Select Visa

Reflex Mastercard - Maximum Credit Limit of $4,000

Reflex Mastercard Description - The Reflex Mastercard is an unsecured credit card from Continental Finance. If you are pre-approved, you will be either offered a card with a $300, $500, $750 or $1,000 credit limit. We like and recommend the version with either the $750 or $1,000 starting credit limit because these two versions come with an annual fee ($125) but no monthly fee (whereas the $300 and $500 limit charge a monthly fee from the second year onwards). The maximum credit limit you can get is $4,000.

Why We Like This Card - We like the Reflex Mastercard $750 and $1,000 version they only charge an annual fee and no monthly fees. Reflex also has very good reviews and ratings on TrustPilot (4.8 stars out of 5) and Continental Finance also has an A+ rating on BBB. Many of their card holders appear happy with their customer service, mobile app and the ability to pay with a debit card over the automatic phone payment system.

Requirements

Average approval score : Vantage score of 600, FICO score of 610
No more than 2 hard inquiries during the last 6 months

Annual Fee: Varies with different offers (see review)
Regular APR: 35.90%
Starting Credit Limit: $300 - $1,000

Read our review of the Reflex Mastercard

Surge Mastercard - Up to $2,000 Credit Limit in 6 Months

Surge Platinum Mastercard - The Surge Platinum Mastercard is also from Continental Finance and has the same features as the Reflex Mastercard. You will be offered one out of four versions with credit limits of either $300, $500, $750 or $1,000. We like the $750 and $1,000 credit limit versions because they charge an annual fee with no monthly fee or one-time processing fee.

Why We Like This Card -We like the $750 and $1,000 limit versions because it only charges an annual fee, has good customer service reviews, a decent app and allows cardholders to pay with a debit card over the phone.

Requirements

Minimum credit score of 600 - 620 (both FICO and Vantage)
No more than 2 hard inquiries during the last 6 months

Annual Fee: Varies with different offers (see review)
Regular APR: 35.99%
Starting Credit Limit: $300 - $1,000

Read our review of the Surge Mastercard

One Main Financial Brightway Mastercard

Brightway Mastercard Description - The Brightway Card from One Main Financial is a unique unsecured subprime credit card because you are explicitly rewarded for paying on time. If you pay on time for 6 months (or 6 illing cycles), you would have considered to reach one milestone. You will either get a credit limit increase or an APR reduction. Once you reach 4 milestone (ie 24 months of consecutive on time payment), you will be upgraded to the Brightway Plus Mastercard (which does not have any annual fee versus an annual fee of up to $89 for this card). The starting limit could go as high as $2,000 and the maximum credit limit could go as high as $15,000.

Why We Like This Card? - We like the Brightway Card because there is a clear pathway to getting the no annual fee version. You could potentially also get a very decent credit limit compared to other similar cards. The annual is also very reasonable.

Approval Criteria - The average approval FICO score is between 590 - 620.

Annual Fee: $0 - $89
Regular APR: 33.99% or 35.99%
Starting Credit Limit: $300 - $2,000

Read our review of the Brightway Mastercard

Unsecured Cards to Avoid

We generally recommend subprime unsecured credit cards with high fees. Avoid those that charge an annual fee, a monthly fee and a one-time processing fee (especially if the credit limit is $500 or less). You want to avoid unsecured credit cards with Total Fee to Credit Limit ratios of 25% and above.

Consumers Picks and Comments

Here are what consumers say about their picks of the best unsecured credit cards for people with bad credit.

If your credit score is in the 500 area, then your chances of getting an unsecured credit card is close to zero. I would suggest getting a good secured credit card for a year and rebuild. Once your scores are in the mid 600s, then consider getting a low fee unsecured credit card. For myself, I got the US Bank Secured Altitude Go and I think it is a great rebuilder card.

I would recommend staying away from predator cards that charge monthly fees, annual fees and even processing fees. These cards are just there to collect fees from you. Instead, credit check your nearest credit union and try to get an unsecured card with a small limit (like between $300-$500) with no annual fee and just use it responsibly.

I would start with with Capital One Pre-approve links and see what you get approved for. I got the CapOne Platinum with $300 limit but got an increase after 6 months.

I suggest everyone go through cards with pre-approvals first. Like Mission Lane, Credit One, Upgrade Select, Continental Finance.

Best to try pre-approvals from Capital One and Discover. I did Discover and they offered me a secured card first but after 7 months, I got my deposit back and it because an unsecured card.

I got the Brightway card, which is very good.

I suggest the Chime Rebuild Card. It has no credit check and 0% APR. It is like a debit card but it will rebuild your credit and also has no fees.

Try Blaze Mastercard. I got a CLI after 6 months. Some folks have got up to 5k limit with this card.

Milestone was the first card I got when rebuilding. Max limit was $700 and I would not bother with them. If you have this card, just keep it for a year. Capital One is good. I got the Platinum card and product changed them to Quicksilver. I had also used Premier (high monthly fees), Credit One.

I had the no annual fee Mission Lane and it was a good card to rebuild.

These are the cards I got for my rebuild.

Credit One
Mission Lane
Indigo

I got the Surge Mastercard for my rebuild and had a couple of credit limit increase.

Arro is the best app that help me with my credit score and has educated me about what to do and what not to do with my money.

Credit One is a predatory lender, stay far away from them.

My first card was First Premier with $500 limit. Second one was Credit One. Both had high fees. But I now have an Amex and Chase cards. Whatever card you have, you just have to pay your bills on time.

Methology: How We Chose Our Recommended Unsecured Credit Cards For Bad Credit

When we choose our recommended unsecured credit cards, we looked at the following factors in making our decision.

Total Fee to Credit Limit Ratio (TFCL) - Unsecured credit cards targeting those with bad credit tend to have higher fees and lower credit limits than regular unsecured credit cards. Many of you are torn between the fees you pay and the credit limit you will get or potentially get and wonder if the card you are applying for is worth it. The Total Fee to Credit Limit Ratio (TFCL) is a measure we at askmrcreditcard.com use for subprime credit cards. By taking the total fee during a year and dividing it by the credit limit, we can measure how much of fees you are paying as a percentage of the credit limit you are getting.

Credit Limit and Track Record of Credit Limt Increases - Many unsecured credit cards offer a small credit limit of only $300 to their cardholders. On the higher end, some issuers offer limits of $500, 750 and even $1,000. We prefer cards that offer a credit limit of at least $700 to their cardholders. We also prefer credit cards that have a track record of increasing your credit limit over time.

Payment Methods, Holds and Processing Time - Many subprime credit card issuers have longer than usual processing time when after they receive your payments for the credit card bill. And many also have payment holds whereby your payments are processed but it will take more than a few days for your payments to be reflected in your credit limit. This is something we at closely and only recommend cards that have no payment holds or very short payment holds of just a couple of days.

Some subprime credit card issuers also have limited ways in which you can pay your credit card bills. We prefer issuers who allow you to pay your credit card bills with a variety of ways including check and money orders by snail mail, ACH transfers, your bank's bill pay, payment from mobile app and even payment using a debit card. The ability to set up autopay is also a very important consideration.

Mobile App, Free Credit Scores and other Considerations - Not too long ago, many subprime credit card issuers had no mobile apps or even if the did, it was very rudimentary. And while free credit score offerings were more common in mainstream issuers, "bad credit" card issuers were slowly to offer these. Things have changed and many now have these features as standard. Still, these are things we take into consideration when choosing our recommended cards.

Approval Requirements: Can You Get An Unsecured Credit Card with 500 Credit Score? Answer is YES

First, let's define what is considered bad credit as considered by the two main credit scoring models FICO and Vantagescore. FICO defines bad credit as having a score between 300 and 579. Vantage score defines bad credit (subprime) as having a VantageScore of between 300 and 600. In fact, scores from 499 and below are considered very poor by Vantage score. The good thing about unsecured bad credit cards is that some issuers allow you to go through a pre-approval or pre-qualification process whereby you will only face a soft inquiry with no impact on your credit score. If you are pre-approved for any of these cards, you will be shown an offer with the fees and rates and then can decide whether to go ahead with the formal application process.

Credit Scores Needed - Most unsecured credit cards require a FICO score of at least 580 and a Vantage Score of around 600. But credit scores aren't the only things issers look at.

Settle Charge Offs and Collections - Unsettled charge-offs and collections on your credit report are big reason why you will get denied for an unsecured credit card. Either settle your them or agree to a payment plan.

A period of on-time payments on ALL tradelines - To stand a chance of getting approved for an unsecured credit when you have bad credit, you will need to have a period of at least 6 months to a year of on-time payments and having no deliquencies on all your credit accounts.

Income Requirements - While most unsecured credit card issuers for people with bad credit do not explicityly state any income requirement, most people who have got approved having at least average incomes of around $50,000. Some issuers may allow you to get away with income of $25,000, but that is very rare. You should be honest when you fill in your income in the application form because many issuers use third party services to try to verify your income.

Most require checking account - Almost all unsecured bad credit card issuers request you to have a checking account and they will explicityly ask if you have one in the application form. I think the reason why is that issuers do not want to approve people who have bank overdraft issues and have been blacklisted by the chexsystem.

FinePrints of Unsecured Credit Card When You Have Bad Credit

When you get approved for an unsecured credit card when you have bad credit, we need to manage your expectations with regards to certain features that will not be found in prime unsecured credit cards.

Payment Holds - While almost all credit cards from mainstream credit card issuers process your payments very quickly and often reflect that in your credit limits, in the bad credit world, credit cards tend to take a couple of days longer to process your payments. Even after it is process, it may take a couple of days for it to be reflected in your credit limit. That is why it is important to watch your credit utilization ratio when you are using your unsecured credit card so that you will always have ample credit limits for your purchases.

No Auto Collision Damage Waiver Insurance - Most bad credit unsecured credit cards do not have the auto collision damage waiver insurance even though Mastercard and Visa offer these in most of their credit cards. That means that if you rent a car, you should take up the rental companies insurance and pay the insurance premium.
Mobile App Not as Slick - Because subprime issuers tend to be much smaller than mainstream issuers, their mobile apps are usually not as slick and not as frequently updated. So don't expect it to be like an Amex or Chase.

FREQUENTLY ASKED QUESTIONS

How many unsecured credit cards do I need to rebuild my credit?

Most experienced rebuilders claim you need at least 5 tradelines to effectively rebuilder your credit in the fastest possible time. These might include auto loans, students and obviously credit cards. How many unsecured credit cards you need depends on your existing credit mix.

How fast can you get approved for an unsecured credit card?

If you meet the credit card issuers criteria and requirements, you will get approved almost immediately. If not, you may get the 7 day pending message if they need more information like pay stubs or ID for identity verfication.

Do unsecured credit cards report to all three major credit bureaus?

Most do, but some do not. And the ones that do not tend to be (though not all are like that) online merchandise credit cards that only allow you to shop at their online stores.

Will secured credit cards graduate to unsecured credit cards?

Some like Discover and Citi do. But some have had no success with graduation even with these cards.

Why do some unsecured credit card issuers ask if you have a checking account in their application form?

Many unsecured credit card issuers requirement you to have a checking account. They do not want applications who have a history of bank overdrafts and have a bad chex report.