Best unsecured credit cards for bad credit of August 2024
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Updated 2:01 p.m. UTC Aug. 8, 2024
Editorial Note: Blueprint may earn a commission from affiliate partner links featured here on our site. This commission does not influence our editors' opinions or evaluations. Please view our full advertiser disclosure policy.
A bad credit score can make it difficult to qualify for many traditional credit cards. Most credit scores that lenders use in the United States range from 300 to 850. In general, a FICO® Score below 579 is bad (or poor).
Yet even with bad credit, it’s often possible to qualify for certain credit card offers if you know where to look. The best unsecured credit cards for bad credit feature approval criteria that should be easy to satisfy even with a bad credit score or negative credit history. Plus, unlike secured credit cards, you don’t have to worry about providing a security deposit when you open these accounts. Here are some of the top picks available in this category.
Best unsecured credit cards for bad credit
- Petal® 2 “Cash Back, No Fees” Visa® Credit Card *: Best unsecured card for bad credit.
- Capital One Platinum Credit Card: Best for building credit.
- Petal® 1 “No Annual Fee” Visa® Credit Card *: Best for preapproval.
- Prosper® Card *: Best for credit limit increases.
Why trust our credit card experts
Our team of experts evaluates hundreds of credit cards and analyzes thousands of data points to help you find the best card for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 300+ cards analyzed.
- 5+ data points analyzed.
- 5-step fact-checking process.
Best unsecured card for bad credit
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
*The information for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Best for building credit
Capital One Platinum Credit Card
Best for preapproval
Petal® 1 “No Annual Fee” Visa® Credit Card
*The information for the Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Best for credit limit increases
Prosper® Card
*The information for the Prosper® Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Compare the best unsecured credit cards for bad credit
None
None
N/A
The information for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Why it’s the best
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card * The information for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. (issued by WebBank) can be a solid choice for consumers with bad credit since your ability to qualify for an account doesn’t depend solely on your credit score. You can open this no-annual fee credit card without a security deposit and it’s also possible to get preapproval, meaning you can see if you’re eligible for an account with only a soft credit inquiry that won’t impact your credit score. The card reports to the major credit bureaus to help you build credit with responsible card use.
Pros:
- No security deposit.
- No annual fee.
- No foreign transaction fees.
Cons:
- Potential for high APR.
- No welcome bonus.
- Complicated rewards program.
Card details:
- Annual fee: $0.
- Rewards: 1% cash back right away and up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments. Plus, earn 2% to 10% cash back at select merchants.
- Welcome bonus: None.
- Foreign transaction fees: $0.
Why it’s the best
The Capital One Platinum Credit Card could be a good option for people who are building credit, those who are new to credit, and people with fair credit scores. The card comes with no security deposit requirement and no annual fee and reports account activity to all three major credit bureaus. Capital One also offers a preapproval tool and will automatically review your account after six months to see if you’re eligible for a possible credit limit increase.
Pros:
- Automatic review for credit limit increase after six months.
- Reports to all three major credit bureaus.
- No annual fee.
Cons:
- High APR.
- No rewards.
- No welcome bonus.
Card details:
- Annual fee: $0.
- Rewards: None.
- Welcome bonus: None.
- Foreign transaction fees: None.
The information for the Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Why it’s the best
The Petal® 1 “No Annual Fee” Visa® Credit Card * The information for the Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. (issued by WebBank) is a decent unsecured credit card solution for consumers with poor or no credit history. The no-annual fee card is light on rewards, but it comes with a preapproval tool that lets you see if you’re eligible for an account with only a soft credit inquiry that won’t impact your credit score. Designed to help you build credit, the card reports to the major credit bureaus so with responsible use you should see your credit score start to rise. Plus, you may be able to earn a credit limit increase after six months of on-time payments.
Pros:
- No annual fee.
- Preapproval tool available.
- Earn cash back at select merchants.
Cons:
- High APR.
- No welcome bonus.
- Limited rewards.
Card details:
- Annual fee: $0.
- Rewards: 2% to 10% cash back at select merchants.
- Welcome bonus: None.
- Foreign transaction fees: None.
The information for the Prosper® Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Why it’s the best
It’s common for credit card issuers to review your account to see if you’re eligible for a credit limit increase after six months. But with the Prosper® Card * The information for the Prosper® Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. , you might receive repeated credit limit increases over time based on your payment history and other factors. Since your credit limit impacts your credit utilization ratio, qualifying for a higher credit limit is a positive step on your credit-building journey. The card also requires no security deposit and waives the annual fee for the first year if you sign up for AutoPay before your first statement.
Pros:
- Preapproval tool.
- Automatic credit limit reviews.
- No security deposit requirement.
Cons:
- Annual fee.
- High APR.
- No rewards or welcome bonus.
Card details:
- Annual fee: $39 (waived for the first year if signed up for AutoPay before the first statement).
- Rewards: None.
- Welcome bonus: None.
- Foreign transaction fees: 1% of the transaction amount.
Methodology
Our credit cards team has spent hours analyzing hundreds of credit cards. We took a deep dive into the details of each product and that analysis, combined with our years of experience covering credit cards, informed us as we developed these credit card rankings. Factors we considered included:
- APR: 40%.
- Annual fee: 25%.
- Reports to credit bureaus: 20%.
- Access to higher credit limit: 15%.
What is an unsecured credit card?
An unsecured credit card is a traditional credit card account that you don’t secure with collateral, such as a security deposit, when you open the account. Instead, the credit card issuer either approves or denies you for an unsecured credit card based on your creditworthiness. Based on your credit report and credit score, your creditworthiness helps issuers predict the likelihood you’ll repay the money you borrow as promised. An unsecured credit card is the most common type of credit card account.
What’s considered bad credit?
In the United States, most lenders use base FICO® Scores that range from 300 to 850. FICO Scores below 579 have a classification of “poor.” So, if you have a FICO Score below 580, most lenders would consider you to have bad credit.
When you have bad credit, it can be difficult to qualify for certain types of financing, such as loans and some unsecured credit card offers. In general, the best credit cards require you to have good or excellent credit to be eligible for approval. On a positive note, there are steps you can take to fix and repair bad credit if your credit score is in need of improvement.
How to get an unsecured credit card with bad credit
Qualifying for an unsecured credit card could be a challenge when you have bad credit. Some credit card issuers may want applicants to have good or excellent credit scores before they will approve them for a new unsecured credit card account.
But don’t worry, you still have options. Some credit card companies offer unsecured credit cards that are more accessible for consumers with bad credit. The best unsecured credit cards for bad credit feature qualification standards that are easy to satisfy even if you have bad credit scores, no credit or negative history on your credit report.
It’s wise to review your three credit reports from Equifax, TransUnion and Experian before you apply for a new credit card account. Checking your credit scores is a good idea as well. If you discover that you have credit challenges, you may want to consider applying for an unsecured credit card for bad credit or perhaps a secured credit card until you have the chance to improve your credit score in the future.
Choosing the best unsecured credit card for bad credit
When you’re looking for an unsecured credit card for bad credit, there are several details you may want to consider before you apply for a new account.
- Credit reporting: It’s important to make sure the credit card issuer will report the account to all three credit bureaus (Equifax, TransUnion and Experian). Otherwise, your new credit card won’t actually help you to build your credit profile to qualify for better financial products in the future.
- Fees: Pay attention to the fees a credit card issuer charges. If a credit card comes with an annual fee, make sure the benefits the card offers are worth the cost.
- Rewards and benefits: Most unsecured credit cards for bad credit will offer limited to no rewards. However, if you find a credit card that offers some benefits or rewards these could be an added bonus. Just keep in mind that you should never spend more than you can afford to chase rewards.
- APR: A high annual percentage rate (APR) on an unsecured credit card for bad credit doesn’t have to be a dealbreaker. If you pay your full statement balance each month you can avoid paying interest on your account. But if you think you’ll carry a balance on your account sometimes, it’s wise to look for a credit card with the lowest APR possible.
Alternatives to an unsecured credit card if you can’t get approved
Unsecured credit cards aren’t the only way to build credit. If you can’t qualify for this type of account, here are a few other credit-building options to consider.
Secured credit card
A secured credit card works like an unsecured credit credit, but you provide the issuer with a cash security deposit for collateral. Your security deposit is equal to the credit limit on your new credit card, although some issuers offer outsize credit limits. Many secured credit cards report to all three credit bureaus, just like unsecured credit cards. This means they have equal credit-building potential as long as you use your credit card in a responsible manner by keeping your credit utilization low and paying on time every time.
Credit-builder loans
A credit-builder loan can be another tool to help you establish credit when you have no credit history or a bad credit score. With a credit-builder loan, you don’t receive the money you borrow right away. Instead, the lender holds the funds in a savings account or certificate of deposit (CD). Once you pay off the loan, you’ll receive your loan proceeds (minus any fees). In the meantime, the lender may report your payment activity to the credit bureaus, which could give you the potential to establish credit history.
Note: You should verify the lender’s credit reporting policy before you open an account to confirm that the credit-builder loan will report to all three credit bureaus.
Should you get an unsecured credit card with bad credit?
Applying for an unsecured credit card with bad credit could be worthwhile if you’re committed to using your new account in a responsible manner. Over time, a new credit card may help you establish positive credit history and could also have a good impact on your credit score. But it’s important to avoid mistakes like late payments, a high credit utilization ratio and overspending. Otherwise, the new credit card you open with the goal to help improve your credit could backfire and damage your credit score instead.
Frequently asked questions (FAQs)
If you have negative credit history, it’s wise to search for unsecured credit cards for bad credit. You may also want to look for credit card issuers that offer a preapproval tool. Preapproval allows you to see if you’re eligible for an unsecured credit card without subjecting your credit report to a hard inquiry that could damage your credit score.
Most unsecured credit cards have the potential to help you build credit if you manage the accounts wisely. But it’s important to verify that the credit card issuer reports account activity to all three major credit bureaus — Equifax, TransUnion and Experian — to be sure.
Many credit card issuers view a credit score of 579 and below as very poor. It may be difficult to qualify for an unsecured credit card with a credit score in this range. But some credit card companies may still be willing to work with you. Before applying for unsecured credit cards, consider other avenues like secured cards, credit-builder loans or becoming an authorized user on someone else’s credit card. These can help you raise your score and increase your chances of being approved for unsecured credit cards.
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card * The information for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. may be one of the easiest unsecured credit cards to get because the card issuer bases its qualification decision on your credit score and other factors. Additionally, the card issuer offers a preapproval tool so you can see if you are eligible for a new account with only a soft credit inquiry.
Both secured and unsecured credit cards have the potential to be effective tools to help you build credit. As long as the credit card company reports to all three credit bureaus and you manage your account responsibly by making on-time payments and keeping your credit utilization ratio low, either type of credit card could be a useful way to build credit. The credit bureaus don’t value one type of card higher than another.
If you have a bad credit score, some credit card issuers may be hesitant to approve you for certain credit card products. It’s common to need a good credit score or even an excellent credit score to qualify for some credit cards — especially rewards credit cards. With bad credit, you may still be able to open a credit card. However, the number of credit card offers available to you will likely be more limited. And the credit cards you are eligible to open will probably feature higher APRs, higher fees and limited or no rewards.
Some credit card issuers will automatically upgrade secured credit cards to unsecured credit cards for responsible cardholders. When this happens, your credit card issuer may return your security deposit or issue it to you as a statement credit. However, keep in mind that late payments or other negative activity on your account may disqualify you from an upgrade to an unsecured credit card.
*The information for the Petal® 1 “No Annual Fee” Visa® Credit Card, Petal® 2 “Cash Back, No Fees” Visa® Credit Card and Prosper® Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
