Best Unsecured Credit Cards for Bad Credit 2022

Best Unsecured Credit Cards for Bad Credit 2022 

If you have been searching for an unsecured card, it’s easy to get disappointed since not everybody can qualify. This often is an unending circle: you can’t get an unsecured credit card, which doesn’t let you build up your credit history. 

Still, unsecured credit cards are a nice choice for many credit takers. A small but special part of them is designed specifically for those who don’t have a perfect credit history or have limits. 

Though an unsecured credit card isn’t very common among people with poor credit, there are ‘pearls’ in the ocean of options. Some may appear better, some may offer exclusive benefits, and some are just a golden middle making it convenient for everyday use. 

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Best Unsecured Credit Cards for Bad Credit 

Anyway, having a weak score shouldn’t rid you of the opportunity to use a reliable card in convenient conditions. In contrast with secured cards that have the potential to build the credit score but require a minimum monthly payment, the unsecured ones never ask you to put up collateral to be approved. This is clearly a big plus. 

In addition, you may not always have what it takes to make an upfront payment with a secured card. All through life ups and downs, few of us can. This is where an unsecured credit card for bad credit shines. 

Finally, an unsecured card is best for a bad credit holder because of favors such as rewards they can get through constant use. For this article, we gathered info about the most attractive cards of this type, and we encourage you to have a look at them in the paragraphs below. 

Credit One Bank® Platinum Visa® for Rebuilding Credit 

Card Overview

At a glance, the Credit One Platinum Visa is a card with attractive cashback in lots of categories. It doesn’t give a welcome bonus but includes grocery and gas purchases, as well as monthly payments for Internet, etc. The card is open for any user with a score from bad to fair: 300 to 670. 

That is not all it offers. You can activate ‘more cash rewards’ at your will, where cashback can reach even 10% if you buy from select merchants. The exception to cashback that we find a minus is goods at a discount, e.g., drugstore purchases. They are not eligible for cashback. Anyways, if you’re against tying your money in a deposit, then it will serve you well. 

Regular APR

The APR at Credit One Bank card is 24.49%. This is a Variable APR, and that percentage relies on the market condition. However, variable APRs, as a rule, start much lower than fixed ones. 

Annual Fee

This one has a $99 annual fee. In the first year, it is lower: $75.

Minimum Deposit

Nothing is required to start. 

Pros and Cons

Pros

  • 1% cash back on many categories
  • Easy check for pre-qualification without ruining the score
  • No fraud liability

Cons

  • High APR
  • Discount purchases aren’t given a cashback
  • Fee for foreign transactions (3% in USD)
  • Authorized user fee ($19 per year)
  • High cost of membership: $39 in the first year, $63 later

Conclusion

Out of all Credit One options, this one is the most secure one which allows for use and considerable cashback without worries. However, it can turn out quite costly to pay membership fees. 

Petal® 2 “Cash Back, No Fees” Visa® Credit Card 

Overview

This one stands out because it is a fee-free option to build your creditworthiness. It’s excellent for those who are annoyed by fees and want to receive rewards such as cashback. Pental offers are also good for beginners. 

At the start, the reward structure is a bit complex to understand, but once you get a grip of it, you can earn extras. Owners are rewarded with A-plus behavior (making 12 monthly payments on time) and get an increase in cashback. It reaches 10% if you cooperate with select merchants. 

With Petal 2, you can enjoy Visa special perks such as auto rental collision insurance, roadside dispatch, theft coverage, getting Uber credits, etc. 

Regular APR

APR varies between 15.24% and 29.24%.

Annual Fee

There is no annual fee to pay. 

Minimum Deposit

A user isn’t required to put a deposit. 

Pros and Cons

Pros

  • No annual fees
  • Up to 1.5% cash back on all purchases 
  • No compulsory deposit
  • No foreign transaction fee 
  • Moderate APR
  • Easy transaction management in app / website

Cons

  • Complicated rewards system
  • No APR offer at the start
  • No bonus rewards and cash advances

Conclusion

If you’re a US resident and have all the taxpayer documents, there’s probably no better instrument for you. It accepts scores from 630, so it’s easy to qualify. Though one may need to switch to another card to get a cash advance, this one serves you well until the limit is fine. 

Capital One Platinum Credit Card 

Overview

The Mastercard Platinum by Capital One is another example of no annual fee card, no surprise fees, and an automatic credit line review. As a newcomer, you are going to appreciate the risk-free process of checking if you have chances to get approved, as well as unrestricted access to your score through CreditWise. 

Regular APR

There is a purchase APR of 26.99% (variable). The same APR works for cash advances.

Annual Fee

No annual fee. 

Minimum Deposit

It is colloquially called ‘the card that grows with you because it doesn’t need you to put an amount of money you can’t afford. It lets you start with 3 refundable options:

  • $49
  • $99
  • $200

Pros and Cons

Pros

  • No annual fees
  • Easy review and cancellation of recurring payments (subscriptions, bills, etc.) 
  • No foreign transaction fee
  • Promotional APR
  • No penalty APR
  • Sure-fire zero fraud liability
  • No returned payment fee
  • Easy cash advance

Cons

  • 3% of the amount transaction fees that take place at a promotional APR 
  • Up to $40 penalty fee
  • No bonus rewards and cash advances
  • No intro APR purchases
  • Cash advance fee 10% or 3%, depending on which is bigger
  • High APR overall

Conclusion

Providing easy cash advances and review of terms, Credit One is an optimal variant for everyone craving to save money and use costs reasonably. Besides, It is one of the best versions with no limits to cashback.

Surge Mastercard® 

Overview

The Surge Mastercard issued by Celtic Bank is a way out for those who have either bad credit history or none at all. See if your pre-qualify is available in a minute. 

Surge Mastercard doesn’t need any collateral but includes a considerable annual fee. The special advantage is that it accepts users with a huge range of scores. Here your usage will be reported to 3 bureaus: Experian, TransUnion, and Equifax. 

A cash advance will open up after 6 months of use and making minimum monthly payments. Another good point is no requirement for a security deposit, so one can get $300 to $1,000 without it. As you register, there is full no-deposit access to cash. Users who bring their monthly payments are rewarded with raising the limit to $2,000.

Regular APR

The regular APR ranges from 24.99% to 29.99% and is variable. The percentage changes based on an applicant’s creditworthiness. 

Annual Fee

Minimum Deposit

Pros and Cons

Pros

  • Fast pre-qualification and immediate access to money
  • Accepting users with a wide range of scores (bad to fair): 300 and up
  • Cash advance after 6 months of use
  • Access to limit $1,000 without depositing 
  • A perk for good behavior (raised limit to $2,000)
  • Easy management in mobile app

Cons

  • A high annual fee $75-$99
  • Maintenance fee $10
  • One-time card fee $30
  • 3% foreign transaction fee
  • Late payment and return payment fee $41

Conclusion

All in all, Surge Mastercard is a decent entry-level card for improving one’s credit. It is easy to qualify for and can be used immediately. It has good conditions for users and allows them to build credit and get an efficient credit limit. 

However, if you compare it to other similar variants, here they provide less perks and just a standard set of features. The annual fee may be way too steep for somebody who is trying to build  credit, either. 

Reflex Mastercard® 

Overview

Another popular option for users with a bad credit score who need to improve it is the Reflex Mastercard. However, sometimes the chance to let the score go up (or even to remain at the same level) is costly. 

The cost of membership proves it. $99 per year is the price of having a Reflex Mastercard at your disposal. Among the obvious pluses, there is instant approval for a cash advance, zero fraud liability, and access to the Experian tool to check your score. Reflex Mastercard is Surge’s sister, which was designed by Celtic Bank as well. 

So, if you are searching for a comparingly high limit and need swift approval, this might be your perfect credit card. Still, beware that it comes overburdened with different fees, and a high APR is included. Yet. let us look at each point closer and one at a time. 

Regular APR

The variable APR ranges from 24.99% to 29.99%. The amount charged is more than twice more than the APR of an average card. This point often stops users from going for Reflex cards. 

Annual Fee

Anyone taking advantage of the offer must pay a quite high annual fee: $75-$99.

Minimum Deposit

Luckily, no depositing is needed. 

Pros and Cons

Pros

  • Cash advance available after 6 months of use
  • Sufficient limit: $300-$1,000
  • Easy to qualify and get access to money
  • User-friendly mobile app for management and daily use

Cons

  • A sky-high annual fee: $75-$99
  • Additional maintenance fees ($0 to $120) after the 1st years has passed
  • No rewards
  • Authorized user fee $30
  • Late payment penalty $41
  • A 3% foreign transaction fee in USD

Conclusion

Like every other card out there, Reflex has both pluses and minuses as well as areas of convenience and discomfort. Reflex is a good option if you are a credit builder who needs to improve your score without tucking money away in a deposit. 

If you open it, make sure all monthly payments are made in time. This will protect you from unnecessary penalties and help you achieve better conditions. 

As our advice for someone with a bad credit score, we can recommend it to you when the situation demands an urgent solution and switching to another one with more perks later. 

Revvi Card 

Overview

Though coming with heavy fees, Revvi is for those who can’t qualify for any other and those who want some cash back. 

Regular APR

APR on purchases is 34.99%. 

Annual Fee

The yearly fee is $75 in the first year and $48 after. 

Minimum Deposit

There’s no depositing required. 

Pros and Cons

Pros

  • Easy to qualify with whatever score
  • Sufficient limit $300
  • 1% cash back on all kinds of purchases
  • User-friendly mobile app for management and daily use
  • No foreign transaction fee
  • Nice mobile app to solve your tasks on the go
  • Grace period 21 days

Cons

  • A high one-time / origination fee: $89 
  • High annual fees: $75 in the first year, $48 later
  • No chance to make balance transfers
  • Monthly fee beginning from the 2nd year $6.25
  • Late fee $41
  • Cash advance fee after 12 months: $0 in the first year, $10 (3%) after

Conclusion

Revvi is a nice and handy option for those struggling with improving the score. Moreover, it isn’t merciless to delays in monthly payments and is easy to manage, which makes it a good way to build credit. 

Features of Unsecured Credit Cards for Bad Credit 

It’s logical to seek the most beneficial option when having bad credit. With these features of the best credit cards, your unsecured card will let you make the most. 

APR

Though most unsecured credit cards offer high rates, an acceptable rate ranges from 5% to 25%, though it’s variable. 

Rewards

Cashback 0.5%-2%, miles, and points for good payment behavior, discounts on special purchases such as travel tickets or electronics, and no fees for cash advances, – with all of that, a loan becomes less stressful and more enjoyable.

Terms of use

It includes the range of APRs on different purchases, the flexibility of payment dates, and other points which are either loyal or strict, so it’s always better to pick flexible conditions. 

Cash advance

Though the majority take fees for a limit increase, there are others that don’t charge anything and give it earlier than 1 year of use. 

Credit limit

An optimal limit is $300-$5,000, depending on your needs and purposes. 

How Does an Unsecured Credit Card Work? 

In a nutshell, unsecured credit cards aren’t backed up by deposits (collaterals), and their limits depend on the limit of the cardholder. 

Secured Cards vs. Unsecured Cards

Secured and unsecured credit cards have much in common: they’re accepted as payment methods, can help to improve credit, report to credit bureaus, and can be issued online. 

The difference is that a secured card gets funded by the borrower themselves. In this case, the limit, which is usually $200-$2,000, is determined by depositing. Secured ones are easier to qualify for, even for users with bad to no credit. Under these conditions, secured ones rarely include rewards, and their limit is quite low. 

They also have higher fees. The good point is that a credit check isn’t normally done, while some may require a soft check. 

When it comes to unsecured cards, usually only users with good history and scores can qualify. But as we see from examples in this article, there are special cards for damaged credit owners. Such cards are rich in rewards, charge lower fees and APR, and define fund limits based on a client’s creditworthiness. As a rule, credit checks are needed. 

Can an Unsecured Credit Card Help You Build Credit? 

Unsecured credit cards are good tools to improve your score as they let you use your finance smartly. It all depends on your financial behavior, and even if you’re new to credits, they can give a good start, especially if there are moderate or low fees. 

Still, beware of high fees and APRs because they hinder credit improvement and can be unaffordable. 

What are Guaranteed Approval Credit Cards with $10000 Limits for Bad Credit?

In fact, guaranteed approval credit cards with $10000 limits for bad credit no deposit don’t exist. The closest thing to it is the secured credit cards that allow you to put a deposit. For instance, with Wells Fargo Secured Visa, you can put up to $10,000 in the deposit. The credit card providers guarantee approval. Still, you can’t purchase something that you can’t afford now. Your deposit is already a spending limit that you are to spend.

The lending institutions explain why guaranteed approval credit cards with $10000 credit limits for bad credit don’t exist. Firstly, there is too hard to find the lender, who will provide 100% approval of the $10,000 loan to a person with bad credit. Even if you see such advertisements on the Web, you should be VERY careful with them.

Such tempting offers exist BUT you HAVE to meet some requirements that reduce the level of risk for the lender.

Guaranteed approval credit cards with $10000 spending limits for bad credit sound too optimistic. You have to look thoroughly to find this happy ticket. Mostly, you will see a starting spending limit of $300 (plus fees).

Unfortunately, you should accept the truth – it’s almost impossible to get an unsecured card with a $10,000 limit with a bad credit fast. Still, you have a couple of similar credit cards with high spending limits for people with bad credit:

  1. AeroMexico Visa® Secured Credit Card with $300 to $5,000 limit.
  2. Harley-Davidson® Secured Credit Card with the same limit.
  3. First National Bank of Omaha Secured Visa® Card with the same limit.
  4. First National Bank of Omaha Secured Visa® Card with $200 to $3,000 limit.
  5. Discover it® Secured Card – No Annual Fee with $200 to $2,500 limit.

The most beneficial for you remains Wells Fargo Secured Visa credit card with $300 to $10,000 limit (same as deposit).

FAQs

  • What is the minimum credit score needed for an unsecured card?

Most offer credits to users with 650-850 scores. However, those with bad credit can be eligible for a special category of credit cards. Many of them don’t even have the minimum score. 

  • Which credit cards give me instant approval?

Credit cards such as Surge Mastercard and Reflex Mastercard offer instant approval to clients, and it’s not difficult to qualify for one. 

  • How many unsecured credit cards can I have?

There’s no limit to the number of cards a person can own, and this is an individual matter. It depends on whether they can repay all credits without damaging their history. As a rule, one should have 1 credit if it’s a big one, such as a mortgage or car loan, for it not to affect their scores.