Best Unsecured Credit Cards for Bad Credit

Written by Robert Ferry on May 21, 2022
Best Unsecured Credit Cards for Bad Credit

Credit cards have become essential in our modern life. When someone talks about credit cards, he/she is mostly concerned about unsecured credit cards. That means you don't have to worry about the approval of cash deposits.

Unsecured credit cards are common and easily available. But individuals without perfect credit history or bad credit history find it hard to get an unsecured credit card. Opposite to secured credit cards, unsecured credit cards are much more likely to improve your credit limit and credit history and solve many difficulties.

This post will uncover the best-unsecured credit cards for bad credit and everything you need to know about them. First, we'll see what an unsecured credit card means?

What do Unsecured Credit Cards Mean?

Mostly, the credit cards available in the market are unsecured. Unsecured credit cards are normal credit cards with the eligibility to make purchases at stores, stretching out the payments according to schedule or monthly. An unsecured credit card allows you to increase your credit limit and make monthly payments. You don't need a cash deposit to qualify for an unsecured credit card.

On the other hand, you should have a cash deposit in a locked account managed by a credit card company for a secured credit card. Also, the deposit amount should be lower or equivalent to your credit limit, depending on your card type and credit score. The cash deposit of your secured credit card will remain in the issuer's account for as long as you manage to keep your credit card account open. But If you close your account, you will lose all the money you have in the account.

Advantages and Disadvantages of an Unsecured Credit Card

There are many advantages of an unsecured credit card. One of the biggest advantages of an unsecured credit card is the availability of options. You can choose travel rewards cards, student cards, cashback cards, etc.

It is challenging to make yourself eligible for an unsecured credit card because the chances of not paying the bills on time are higher. After all, you don't need a cash deposit for an unsecured credit card. An unsecured credit card will enable you to achieve your goal of spending your credit amount.

Here are a few pros/advantages of an unsecured credit card:

Advantages of an Unsecured Credit Card

  • No need for a cash deposit

You don't need a cash deposit for an unsecured credit card. The more your credit is worthy of charge, the more your credit limits will increase.

  •  Offers low-interest rates

An unsecured credit card allows you to make purchases without interest. You can avail the option of an O per cent APR period. You can enjoy an introductory time before becoming a regular APR customer.

  • Multiple beneficial rewards options

You can have the best introductory options, such as earning bonuses, cashback, and score points.

  • No fees

One of the best advantages of an unsecured credit card is that you deal with a low fee for foreign transactions or no annual fees.

Alongside benefits, there are also some disadvantages of an unsecured credit card. Let's have a look at them.

Disadvantages of an Unsecured Credit Card

  • A hard approval

You need a good credit card and credit history to qualify for an unsecured credit card. An unsecured credit card requires you to make your credit card and credit history good enough to get great benefits.

  • Risk of increase in paying bills on time

Cash deposits do not secure unsecured credit cards, so lenders find it difficult to qualify. Also, cardholders are at high risk of spending more power. You have to manage your credit limits to avoid an increase in interest. And to do this, you have to make the means of paying your full bills at the end of the month, whether you have a credit limit of thousands of dollars or a few hundred. If you can't make this happen, you'll be in a difficult situation.

Who May Get an Unsecured Credit Card?

It's challenging to get an unsecured credit card if you have a bad credit history. You have to pay heed to the beneficial options for your long credit usage journey because all credit cards don't have solutions for all problems. Following are some types of consumers who are eligible for unsecured credit cards:

A budget-conscious person

If you are budget conscious and think before spending, you are more likely to have a strong credit history. You are also at a high risk of making any small mistake that can lead you to a big disaster. In this situation, an unsecured credit card can be a helpful and effective option for getting cashback on daily purchases.

The difficulty of spending the massive bill of family groceries or other related expenditures once or twice a month can be reduced by an unsecured credit card because it provides the opportunity to manage the interest rate on specific areas you find difficulty spending in, like dining, grocery items, and entertainment purposes.

A Business Owner

Business credit cards help provide companies with the benefits of daily base spending. Freelancers can track their expenses and can get benefits from rewards programs. If you are not a company owner and own a small business, you can qualify for unsecured credit cards.

Business credit cards provide various options and opportunities like getting a low-interest rate with great rewards, bonuses in the introductory period, no fee for foreign transactions, and no annual fees. All these benefits depend on the card you have. But a great variety of cards are also available for people on the startup level and the rich individuals who want to enjoy life at its full by going on luxurious travel trips.

For all the cards, including business credit cards and travel rewards cards, you need to have or increase your credit score from good to excellent.

Travellers

A travel rewards credit card is a great option for people who travel for business purposes or roam around the globe for entertainment. It will help you manage your travelling expenses and increase your travel adventures. A travel rewards credit card demands an annual payment. Still, it offers bonuses on new signups and luxurious rewards like access to the airport lounge.

Suppose you have a 670 or below credit score in your account. In that case, it will be challenging for you to qualify for a travel rewards credit card because it requires a credit score to range from good to excellent.

We move on to the best unsecured cards for bad credit and discuss them.

Best Unsecured Cards for Bad Credit

You have to go through a prequalification process to get an unsecured credit card that is not harmful to your credit score. With the lowest credit score, you can still avail at least one unsecured credit card from the credit cards given below. It will enable you to make purchases without a chequebook, a debit card or cash.

Surge Mastercard

The Surge Mastercard® is one of the most reliable unsecured credit cards for bad credits. It provides you with all the benefits offered by other Mastercards. When you first sign up for the card, the credit limit will be low, but you can increase the credit limit by paying bills regularly for six months. You can make online payments, view your balances and manage your card online on the website or with a mobile application.

With this unsecured credit card, you can buy credit protection so that it can increase the level of your credit card gradually in case you meet with your death. You can also get credit protection after losing a job, disability and time in hospitalization.

Features of Surge Mastercard

  • This card allows you to increase and double your credit limits from $1,000 to $2000. (You have to manage the payments regularly for the first six months).
  •  It offers all types of credit cards, such as travel rewards cards, business cards, and student cards.
  • Signing up for e-statements offers them free access to your credit score of 30 from the Experian boost up tool.
  • It offers an initial credit limit of $300 to $1,000 for available credits.
  • It provides the monthly reporting of your credit activities to the major three credit bureaus.
  • It takes your pre-qualification test without making your credit score less or more.
  • Its regular APR ranges from 24.99% to 29.99%

Reflex Mastercard

By using Reflex Mastercard, you can pass the prequalification test without affecting the bad credit score. It offers a competitive wide credit limit range. You have to pay an annual fee for getting this unsecured credit card, but it has a $0 fraud liability.

Reflex Mastercard starts initially with a low credit limit. Still, as you'll start paying minimum payouts regularly for six months, your credit limit will increase. Reflex Mastercard requires you to pay a maintenance fee (compulsory to pay for the first year), cash advances, returned payments, late payments, and a foreign transaction fee. You can avoid the maintenance fee each month by managing your credit score.

Features of Reflex Mastercard

  • This card allows you to increase and double your credit limits from $1,000 to $2000. (You have to manage the payments regularly for the first six months).
  • It offers all types of credit cards, such as travel cards, business cards, and student cards.
  • It provides the monthly reporting of your credit activities to the major three credit bureaus.
  • Signing up for e-statements offers them free access to your credit score of 30 from the Experian boost up tool.
  • It offers an initial credit limit of $300 to $1,000 for available credits.

The Reflex Mastercard has a regular APR range from 24.99% to 29,99%. You can be eligible for this unsecured credit card with a bad, fair, or no credit score.

Revvi Card

Revvi Card is one of the unsecured credit cards that provides cashback rewards options. It offers $0 fraud liability. You can manage and balance your credit details and credit history on its mobile application online. It keeps track of your credit details, sends a monthly report to the credit bureaus and helps you build and maintain your credit score.

Revvi Card has an APR of 34.99%, a high purchase compared to other unsecured credit cards. It provides $0 fraud liability, an annual fee of $75 for the first year and $48 for the rest of the time, a program fee, fees for foreign transactions, returned payments, late payments and fees for cash advances.

Features of Revvi Card

  • It provides a quick response to its holders.
  • Reliable and easy to use application.
  • It offers 1% cashback rewards on all the payments done by your Revvi credit card.
  • It offers a credit limit of $300 to initiators and other cardholders.
  • It allows you to manage your balance below the credit limit and build up your credit score by making regular payments.
  • You cannot have prequalified for this unsecured credit card and have to pass the checking test required for all.
  • It offers you the option to increase the credit limit by paying a fee after a whole year.

FIT Mastercard

Fit Mastercard sends a report of all your transactions to all the credit bureaus, so you can use this unsecured credit card to shape your credit in a better way. You have to pay an initial processing fee for the first time and avoid the monthly maintenance fee because Fit Mastercard gives you relief for the first 12 months. The card charges fees for cash advances, foreign transactions, late and returned payments, fees for additional cards, and an annual fee.

It offers $0 fraud liability for its cardholders. It has provided you with options to increase the credit limit by regularly paying the minimum payments for the first six months. It also offers credit protection for disability, life or job loss, or expenses during hospitalization. Its purchase APR is 29.99%, and it runs on bad, poor and fair credits.

Features of FIT Mastercard

  • This card allows you to increase and double your credit limits from $400 to $800. (You have to manage the payments regularly for the first six months).
  • It offers all types of credit cards, such as travel rewards cards, business cards, and student cards.
  • It monthly reports your credit details to the three major credit bureaus.
  • Applying, handling, and managing the FIT Mastercard is Easy and reliable. You can solve your inquiries in seconds by contacting the online mobile application.
  • It offers an initial credit limit of $400.00 for available credits.
  • You can use FIT Card at all locations where Mastercard® is acceptable.

Total Visa Card

The Total Visa® Card has a high APR with a short grace period of 21 days only. It provides a fast and easy application process, and you can have quick responses on your choirs. You have to pay the program fee for the first time, and it can also be deducted from your credit limit.

It also demands a monthly service fee for the first year, a late and returned fee, an annual fee, and a cash advance fee. All these fees are essential because the initial credit limit of the card is low, so you have to manage monthly minimum payments. 

Features of Total Visa® Card

  • It is the only genuine Visa Credit card accepted and used by merchants in the United States and online cardholders.
  • You can easily process the application procedure and gets answers to your queries in seconds.
  • It provides a system of monthly payments to manage the credit limit and credit score.
  • It offers a credit limit of $300 for available credits.
  • It provides the monthly reporting of your credit activities to the major three credit bureaus.
  • You can only qualify for this unsecured credit card after checking and passing the test account.

First Access Visa Card

The First Access Visa Card is an all-around, user-friendly, unsecured credit card for bad credit. It provides its imperfect credit holders with daily accessibility and on-time response. When applying for this unsecured credit card, you can choose from the six card designs.

You have to pay plenty of fees, such as initial program fees, late or returned fees, fees for monthly service and fees for cash advances for the first year only. The purchase APR of this card is high. You have to pay the fee for additional cards, increase the credit limit, express delivery fee, and fee for copies of the billing statement.

Features of First Access Visa® Card

  • A checking account is required for the qualifying of this unsecured credit card.
  • It reports to all the three major credit reporting bureaus.
  • It offers its service for at least a $300 credit limit for available credit.
  • First Access Visa® Card has been issued and used by The Bank of Missouri.
  • It doesn't require any approval of perfect credit; they approve their consumers when no one else will make the approvals.
  • You have to go through an easy and secure application system available online to get this card.                                                                             

Indigo® Unsecured Mastercard-Prior Bankruptcy is Okay

The card with the name 'Indigo Unsecured Mastercard-Prior Bankruptcy is Okay' is a user friendly and calm credit card. It doesn't pay heed to the perfect credit history. It would approve your application even if you were involved in a bankruptcy situation. It offers you to prequalify without affecting your credit limit. You can build your credit score high as they report your credit activities to the major credit bureaus.

Features of Indigo Unsecured Mastercard

  • It offers prequalifying option without the upheaval of credit score.
  • It approves the bankrupts and doesn't require perfect credit history.
  • It is easy, user-friendly and online accessible.
  •  You can have access to your lost or stolen cards.

Progress Credit

The progress Credit Unsecured credit card has a partnership with two issuers. They provide you with an unsecured Visa Credit card and a secured Mastercard with your bad credit history. It's easier to get an unsecured credit card than a secured one. The unsecured Visa Card issued by the Bank of Missouri spread nationwide in the United Nations and provided security protections.

Both unsecured and secure credit cards are important for your credit history. They report your credit activities individually to the major credit bureaus. Once your application is approved, you must pay for an initial program. The card cannot be used for transactions or gambling, at fuel stations, and with foreign merchants. This card is good for bad, fair and no credits.

Features of Progress Credit

  • You'll be provided with Secured Mastercard® along with an unsecured Visa® Credit Card by a partnership.
  • The secured card offered by First Progress needs no minimum score approval and credit history.
  • The unsecured VISA card doesn't need additional advances and perfect credit. They will approve you after you aren't selected by anyone else.
  • This card will give you access to your credit limits by providing both VISA and Mastercard.
  • Both secure and unsecured accounts
  • Both accounts send reports to all three major credit bureaus and help you increase your credit limits.

Merrick Bank Double Your Line® Mastercard

The Merrick Bank Double, Your Line® Mastercard, enables you to manage and pay your bills on time. You can increase your credit limit after paying seven regular payments with this card.

Its purchase APR is 19.70% to 29.95% which is comparatively high. You don't have to pay annual fees for this card, but it depends on your credit history. This card will enable you to have access to your monthly FICO score.

Features of Merrick Bank Double Your Line Mastercard

  • It offers credit lines ranging from $550 to $1,350, which can be double to $1,100-$2,700 after the qualification of your account.
  • This card doesn't require any security deposit.
  • It offers you the opportunity to double your credit line, which will happen when you start making regular payments. It requires regular seven monthly payments for the opening of the account.
  • It reports all the credit activities of your account to all the major credit bureaus. So to build your credit high, you have to pay monthly bills on time.
  • It'll provide you with your monthly FICO® Credit Score.
  • If you lost or your Merrick Bank Double Your Line Mastercard is stolen, you will have access to your account 24 hours a day, seven days a week. You should keep track of your account details, credit history and credit limit.

What Is the Range of Credit Scores For an Unsecured Credit Card?

An unsecured credit card lets you know about your qualification for getting, handling and making payments with the help of your credit score. The type of unsecured credit card you can get is dependent on the strength of your credit score. The range of 580 to 669 is the fair to the good range that can provide you with some cards. But if your credit score is below 580, your card choices will be limited. Although you can still find cards with a low range, you'll be charged more fees, and the chances of getting rewards cards will not be more. There is a credit range of 670 to 850, which is called the good to excellent range; if you have a 670 or more credit score, you are eligible for getting rewards cards.

Other Ways to Get Unsecured Credit Cards

If your account has a low credit score and you have applied for a credit card, there are many chances that you can be qualified to get an unsecured credit card.

  • You can also get an unsecured credit card by using anyone else's account as an authorized user. An authorized user doesn't need to have a high credit score because it's not their responsibility to answer the details of payments made on the account. Authorized users can benefit from the credit score of the account they are using. But all these are dependent on the issuer because if he includes you in the reporting, only then you can get the benefits and can increase your credit score as well.
  • The last way to get an unsecured credit card with bad credit is to focus on your credit score and improve your credit score. The chance to apply for a secured credit card is good because it can help you improve your credit score. A secured credit card will enable you to make purchases and pay small bills to boost your credit score and credit history. Another way to improve credit score is the 'Experian Boost'. It is a tool that adds your daily and regular payments like rent and cellphone bills to your credit score history.

Conclusion

Unsecured credit cards have more benefits than disadvantages, but people focus more on the cons, which are only two. The advantages of an unsecured credit card, you can get freedom from cash deposits; you can get great products with multiple benefits and rewards that seem appealing to anyone.

If you have recently started playing the credit card game and are a new player, your journey is not finished yet. You can strengthen your credit score with a secured credit card to understand your future goals better. Once you stick to your goals and habits, you will soon qualify for an unsecured credit card.

Article written by Robert Ferry

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