Unsecured Credit Cards for Bad Credit
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If you have bad credit (FICO scores of 629 or below) but hope to get a credit card, you have options. Your best bet is typically a secured credit card because you'll provide an upfront deposit as collateral.
Unsecured cards, on the other hand, don’t rely on collateral. As a result, it can be more of a challenge to qualify for an unsecured credit card if you have bad credit.
Still, unsecured credit cards for bad credit are available — but choose carefully. Some are decent options you can use on your credit-building journey, and they may help you qualify for other (better) cards later on. Others, however, charge a laundry list of mysterious fees and place strict limitations on how and where you can use the card.
Even if you have bad credit, you can do better than those products.
With an unsecured card, you won't owe an upfront deposit — but keep in mind that any fees you pay to hold the card will not be refundable. (With a secured card, your deposit is refundable if you close the account in good standing.)
Unsecured cards that are OK options for bad credit
The best unsecured cards for bad credit keep the fees relatively low and give you opportunities to increase your credit limit. They’re not cards to hold forever, but by using them responsibly — not overspending, and paying your bill on time and in full each month — you can boost your credit scores and thus gain access to better, more rewarding credit cards.
Below are some options to consider. Some may charge an annual fee, but it typically won't be outlandish, or compounded by other hidden costs or drawbacks.
Mission Lane Visa® Credit Card
Annual fee: $0.
Rewards: None.
Why we like it: Mission Lane has a preapproval tool that allows potential cardholders to see the terms of their credit card offer before officially applying and submitting to a hard inquiry. After filling out the preapproval form, you’ll be able to see what Mission Lane credit card you qualify for, the rewards rate and the annual fee, if any. (Note that rewards are available only on the Mission Lane Cash Back Visa® Credit Card, which generally will require at least fair credit.)
Petal® 1 Visa® Credit Card
Annual fee: $0.
Rewards: 2%-10% cash back at select merchants.
Why we like it: The Petal® 1 Visa® Credit Card is one of the best unsecured cards for people with bad credit. First, it’s one of the few in its class that has no annual fee, nor does it charge foreign transaction fees. The card also earns modest rewards, which aren’t capped and never expire.
Depending on your credit, you might instead be approved for the Petal® 1 Rise Visa® Credit Card. That "Rise" version of the card doesn't earn rewards and has an annual fee of $59 — which isn't ideal, but is still reasonable for those with bad credit.
Petal notified some of its cardholders that they would be charged an $8 monthly membership fee starting July 2023. The company declined to share the criteria that determined whether a cardholder would have to pay monthly fees. Petal stated that these fees would not apply to new applicants, only to certain existing cardholders, although it's unclear whether new cardholders could also see monthly fees imposed at a later date. As of June 2023, Petal's website did not indicate that there were any membership fees on the Petal 1 card, but it also noted that "card fees and terms may vary for members acquired prior to 5/16/23."
Prosper® Card
Annual fee: $39 (waived for the first year if you sign up for autopay before your first statement).
Rewards: None.
Why we like it: While the Prosper® Card has an annual fee, it can be waived for the first year if you opt in to autopay before your first statement arrives. Initial credit lines range from $500 to $3,000, and Prosper automatically reviews your account to see whether you qualify for a credit line increase. For those in a cash crunch, Prosper gives new cardholders immediate access to 50% of their credit limit upon approval for the Prosper® Card. The card, issued by Coastal Community Bank, is designed for those who are building credit — according to a Prosper representative, 80% of cardholders have credit scores below 660.
Seen Mastercard
Annual fee: $0-$75.
Rewards: None.
Why we like it: As of this writing, you'll need an invitation to apply for the Seen Mastercard. But initial credit limits range from $300 to $3,000, depending on creditworthiness, and cardholders might get a credit limit increase after making at least five consecutive on-time payments of at least the minimum amount due. New cardholders also get access to their Seen card immediately upon approval by adding the virtual card to a digital wallet such as Apple Pay.
Brightway credit card
Annual fee: Up to $89.
Rewards: Unlimited 1% cash back.
Why we like it: The BrightWay credit card, too, requires an invite. But in addition to earning rewards, the card offers incentives for making six consecutive on-time payments. If you qualify, you may choose one of two "Milestone Rewards": a credit limit increase (up to $15,000), or a reduced purchase APR (no lower than 19.99%). It’s also possible to upgrade from the Brightway card to the Brightway+ card, which has no annual fee — though this perk is only available to applicants who applied for the Brightway card before Oct. 31, 2024.
Cards to avoid
With lower-cost options available, there’s just no reason to pay sneaky fees or put up with strict limits on where you can use the card. Here are some products to avoid:
Cards with excessive fees
Cards that can only be used at certain retailers
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