Bad credit can be literally referred to as having a credit score of 580 and below. So, if your credit score falls within that range, your best option may be a credit card for bad credit. People who have made financial mistakes, like defaulting on a loan or missing credit card payments, often have poor credit.
Nevertheless, you can consider an unsecured credit cards for bad credit card. Unsecured credit cards won’t be one of those cards you see advertised with rich rewards or exclusive rewards. Instead, it will be a fairly basic card. That is absolutely okay. You’re not going to be relying on these cards forever. The idea is to use it to either build or rebuild your credit, then move on to a better credit card.
This article will help you in identifying the best unsecured credit cards for bad credit. You will see that we have chosen these cards because they are appropriate to consumers with bad credit scores, which is a FICO Score of 580 or below. If used at their best, these cards provide a way for you to demonstrate responsible behavior that can help you rebuild your credit score.
Table of contents
- The Best Unsecured Cards for Bad Credit
- 1.Surge Mastercard
- 2. Petal 2 “Cash Back, No Fees” Visa Credit Card
- 3. Petal 1 “Cash Back, No Fees” Visa Credit Card
- 4. Reflex Mastercard
- 5. Total Visa Card
- 6. Chime Credit Builder Card
- 7. Avant Credit Card
- 8. Indigo Unsecured Mastercard
- 9. FingerHut Credit Account
- 10. Credit One Bank Platinum Visa for Rebuilding Credit
- 11. Progress Credit
- Conclusion
- FAQs
- References:
- Recommendations
The Best Unsecured Cards for Bad Credit
Regardless of how bad your credit score is, one of these cards will definitely be approved for you, letting you shop without cash, or a debit card. These cards allow you to test the waters through an at least qualification process that will not hurt your credit score at all.
1.Surge Mastercard
The Surge Mastercard® is issued by Celtic Bank and serviced by Continental Finance. Surge Mastercard is an unsecured credit card offered to those with a fair or poor credit. It offers you $0 fraud liability and other basic benefits that come with all Mastercard credit cards. While the initial credit limit is low, you may receive a higher limit by paying your bill on time for the first six months in a row. You can manage the card online via a mobile app to view balances and make timely payments.
Those approved for can expect an initial starting credit limit of $300 which is a good starting limit for a subprime card. Also, it should be note that the Surge Mastercard has a high annual fee in the first year of card membership, making it extremely important for those that get approval to make an on-time payments in full each month. If the annual seem too high for you then you should explore other options.
2. Petal 2 “Cash Back, No Fees” Visa Credit Card
The Petal 2 Visa Credit Card which runs on the Visa network, is one of the of best of many when it comes to cards for building good credit. It has absolutely no fees of whatsoever, no late fee, no foreign transaction fee, annual fee. Also, it has up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments. Plus, you will be able to see if you’re pre-approved within minutes without impacting you credit score. The Petal 2 credit card is highly recommended.
Of course, every rose has it thorns as they say, and for the Petal 2 is, you won’t be eligible for the card if you have filed for bankruptcy in the past 48 hours and if you get rejected once then you won’t be eligible to apply again. Another relevant information you will like know is for the Petal 2 credit limits from $500 to $10,000.
The card also comes with some basic benefits as;
- Uber Credit Via Visa Offers
- Auto Rental Collision Insurance
- Roadside Dispatch access
- Lost or Stolen Card Emergency Replacement
- Identity Theft Protections
3. Petal 1 “Cash Back, No Fees” Visa Credit Card
According to Forbes Advisor, “If your credit score reminds you of the early stages of a compost pile, the Petal 1 Visa could be the catalyst you need to help sow the seeds for improvement.” The Petal 1 and Petal 2 visa are sibling and both offer almost exact rewards. You may not be required to have a credit score to apply just as Petal 2. Instead, Petal 1 may use your banking history to generate what it calls a Cash Score to determine your creditworthiness. This puts it in a rare category of cards that are available to those with not great credit but don’t require a security deposit.
And if we are to compare the two then the Petal 2 card also doesn’t charge any late or returned payment fees. But again, if your credit is in really poor shape, you might be more likely to get approved for the Petal 1card than 2.
4. Reflex Mastercard
This unsecured credit card issuer offers the opportunity to double your credit limit within six months and will report your payment and balance history to all three credit bureaus each month. This card isn’t for you if you have a good credit. Reflex specifically tailored this card for consumers who need a way to rebuild their low credit score without incurring more debt.
The Reflex Mastercard® let you apply and get approved in no time without affecting your low credit score. This card offers a credit limit range that’s wider than those offered by some competitors. It comes with an annual fee between $75 and $99 which we consider to be very high and charges up to $40 late payment fee. Though it offers free maintenance fee in the first year but provides $0 fraud liability.
5. Total Visa Card
The Total Visa Credit Card is unsecured too, so no security deposit is required. You can potentially qualify for the card even if you have less-than-stellar credit, and get a credit limit of $300 without having to use your money as collateral.
The Total Visa® Card offers a quick application process and an immediate decision. The card’s APR is higher than some other cards in this review, and the 21-day grace period is one of the shortest. The card charges a one-time program fee, an annual fee, and a monthly servicing fee that’s waived for the first year, as is the cash advance fee. Just like Reflex card, this also has a late payment fee that are up to $40, or $29 if no other late payments are outstanding in the last six months.
6. Chime Credit Builder Card
The Chime Credit Builder Card is another option for building up a credit profile. The card won’t charge you any fees, no annual fees, no annual interest charges, no minimum-security deposit requirement. But it might be considered a con that to apply for the Chime Credit Builder, you have to have a Chime spending account.
If you are serious about improving your credit, you don’t want interest and you are confident that you can add money every month to your Chime credit Builder account then this card is for you.
7. Avant Credit Card
The Avant credit card is another unsecure credit card option for you to consider. If you’re new to credit or had a few missteps and finding it challenging to find a card that doesn’t require an upfront security deposit to make a choice on. The Avant card also is unsecured so you won’t have to pony up anything to get it.
As a Mastercard too, the Avant credit card comes with the following benefits: Get assistance with notifying the appropriate issuing authorities to cancel and replace stolen or missing items, arrange for a replacement card as soon as the next day and/or arrange for an emergency cash advance, get a 15% discount off airport meet and greet services, and Access to a team of identity theft resolution specialists.
8. Indigo Unsecured Mastercard
The Indigo Unsecured Mastercard also called “Prior Bankruptcy is Okay” is so tolerant of a less-than-perfect credit history that it may approve your application even if you previously had to file for bankruptcy. You can pre-qualify for the card without the effect of your poor credit score and then use the card to rebuild your credit score and just as every issuer out there the major credit bureau receives your transaction details each month.
The Indigo card lets you choose from among a handful of different card designs. You also get Mastercard fraud protection. The card issued by Celtic Bank.
9. FingerHut Credit Account
The Fingerhut Credit Account is not a credit card. Rather, it is an account that lets you change your purchases from the Fingerhut online store. This account helps you build your credit by paying your bills on time. You can earn a higher credit limit after three on-time payments.
Late and returned payments are the only two fees attached to this account. The card or rather account’s APR is non-variable, which is a plus. Fingerhut reports to all 3 major credit bureaus.
10. Credit One Bank Platinum Visa for Rebuilding Credit
As the tenth spot we have the Credit One Bank Platinum Visa for Rebuilding Credit, the only card in this review that offers cash back rewards. It also comes with $0 fraud liability, free credit scores from Experian, and regular credit line increases. It takes only a minute to pre-qualify or confirm eligibility and get pre-approved for this card without affecting your credit score.
The card offers a relatively very low APR for this group. It charges an annual fee, plus fees for cash advances, foreign transactions, late payments, and returned payments. The card also allows you to choose your payment due date after the initial billing period.
11. Progress Credit
The Progress Credit partners with two issuers to provide you with both an unsecured Visa credit card and a secured Mastercard despite your poor or imperfect credit history. In fact, the unsecured card is among the easiest to get just as the others mentioned above.
The unsecured Visa card from the Bank of Missouri boasts nationwide acceptance and security protections. The two cards can help you build credit because each separately reports your transaction activity to each major credit bureau. The unsecured card charges a onetime program fee if your application is approved. One con that with these cards is you can’t use the card at fuel pumps, for gambling transactions, or with foreign merchants.
Conclusion
Following our recommendation throughout will help you in making the best choice possible in choosing the best credit card for you and that is the first right step you need to take in your journey of building or rebuilding your credit score.
Ensure you’re doing your possible best in keeping a good credit score.
FAQs
Easy thing. If you are looking for easy steps on How to apply for an unsecured credit card for bad credit, then these are the simple steps to follow:
Make research on which card better fits your spending base on your credit score goal.
Use your Social Security number to check your credit apply through the issuers official site. The application will usually ask about your income as well.
Your will either be pre-approved or disapproved. Don’t waste your time pitying yourself if disqualified and quickly moved to your next option.
Get ready to receive to your card.
Your credit card issuer sends all your credit history to the three credit bureaus and the more consistent you are with your payments the more your credit score improve. To build credit with a credit card, all you have to do is use your card for purchases you can afford to pay off on due time.
An unsecured credit card is designed for those with poor credit. Unsecured credit cards should be for people who don’t have enough or are struggling to get the down payment that is a requirement when applying a secured credit card and are still looking to either build or rebuild their credit score from scratch.
References:
Recommendations
