Featured Partner Offer
Self Visa® Credit Card
On Self's Website
2.0
Forbes Advisor created additional star ratings so that you can see the best card for specific needs. This card shines for this use, but overall the star ratings may differ when compared to other cards.
On Self's Website
Welcome Bonus
N/A
Annual Fee
$25
Regular APR
29.24% variable APR
Credit Score
Bad/Poor/No Credit
Editorial Review
If you need small steps and guidance to build credit, you might consider the Self Visa® Credit Card your friend in the process. There’s no credit check and anyone is eligible to apply.
Pros & Cons
- No hard credit pull for the card or Credit Builder Account
- Self will regularly review your account for credit limit increases
- Your security deposit is what’s in your Credit Builder Account
- Annual fee charged
- It can be confusing to know what credit builder plan to pick
- Those with some credit may fare better with a secured card
Card Details
- Choose your credit limit ($100 or more)
- Accounts in good standing have an opportunity to increase their credit limit over time
- 29.24% variable APR on purchases
- $25 annual fee
N/A
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
Best Unsecured Credit Cards for Bad Credit of June 2024
Best for Easy Credit Increases
Prosper® Card *
5.0
Forbes Advisor created additional star ratings so that you can see the best card for specific needs. This card shines for this use, but overall the star ratings may differ when compared to other cards.
No Rewards
The Prosper® Card does not offer rewards on purchases.
Welcome Bonus
N/A
Annual Fee
$39, waived for the first year after signing up for autopay before the first statement is issued
Regular APR
24.24% - 35.24% variable
Credit Score
Bad/Poor(0 - 649)
Editor’s Thoughts
This card waives the annual fee for the first year (after signing up for Autopay) and offers a simple path to building credit.
Why We Like It
The automatic account reviews offered on this card make it easy to potentially get a higher credit limit.
Why We Don’t Like It
Anyone who values rewards will be disappointed that this card doesn’t offer a welcome bonus or earn rewards.
Who It’s Best For
Those looking to take advantage of a card that can help build a stronger credit profile with no annual fee the first year.
Pros & Cons
- No deposit required
- Marketed toward those with less-than-stellar credit
- No hard credit check to review your offer, but credit inquiry only hits upon approval
- $39 annual fee
- 1% of the transaction foreign transaction fee
- No low introductory APR period
- No low introductory balance transfer APR
Card Details
- Initial credit line of $500-$3,000 with automatic account reviews for increases every three months
- No security deposit required
- $39 annual fee, waived for the first year after signing up for autopay before the first statement is issued
N/A
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
Best for no-frills credit building
Mission Lane Visa® Credit Card *
4.7
Forbes Advisor created additional star ratings so that you can see the best card for specific needs. This card shines for this use, but overall the star ratings may differ when compared to other cards.
Welcome Bonus
N/A
Annual Fee
$0 - $59
Regular APR
19.99% - 33.99% variable
Credit Score
Fair, Limited(650 - 699)
Editor’s Thoughts
Depending on your application and profile, you could get approved for a card that earns cash back or has no annual fee.
Why We Like It
The card offers a prequalification form so you can get a good idea of whether or not you’ll be approved before formally applying.
Why We Don’t Like It
The terms are murky at best, making it difficult to understand what the card really offers. You may or may not be approved for a card that earns cash back.
Who It’s Best For
Anyone who is focused on building credit and doesn’t need any other card perks.
Pros & Cons
- No deposit required
- Automatic evaluations for credit limit increases
- Earns 1% to 2% cash back
- Above-average APR on the high end of the range
- Card’s terms and conditions are hard to find
- $0 - $59 annual fee
Card Details
- Credit line eligible for increase if account is in good standing following first 6 on time payments
- Reports to all 3 major credit bureaus
- No security deposit fee, monthly maintenance fees or over-the-limit fees
- $0 - $59 annual fee
N/A
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
Best Card for Additional Rewards
Credit One Bank® Platinum Visa® for Rebuilding Credit *
4.5
Forbes Advisor created additional star ratings so that you can see the best card for specific needs. This card shines for this use, but overall the star ratings may differ when compared to other cards.
1% Reward Rate
Earn 1% cash back rewards on eligible gas, grocery purchases and mobile phone, internet, cable and satellite TV services. TermsRead More
Welcome Bonus
N/A
Annual Fee
$75 for the first year. After that, $99 annually (billed as $8.25 monthly)
Regular APR
29.74% Variable
Credit Score
Bad Credit(0 - 649)
Editor’s Thoughts
This card offers the best perks and ancillary benefits compared to others in the same class.
Why We Like It
The card earns rewards on purchases, sometimes up to 10% back.
Why We Don’t Like It
High annual fee.
Who It’s Best For
Those looking to earn rewards while building credit, and don’t mind a high annual fee.
Pros & Cons
- Earns cash back on select purchases
- Accessible to applicants who have bad to fair credit scores
- Access to a revolving line of credit with no security deposit
- High annual fee that increases the second year
- High interest rates
- Limited rewards program
- Low credit limits
Card Details
- Earn 1% cash back rewards on eligible gas, grocery purchases, phone, internet, cable and satellite TV services
- Zero fraud liability for unauthorized charges
- Automatic reviews for credit line increase opportunities
- Online access to your Experian credit score
N/A
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
Best Unsecured Credit Cards for Bad Credit
Prosper® Card *
[ jump to details ]
The Prosper® Card* is a fairly straightforward unsecured card. While it doesn’t offer a welcome bonus, rewards or additional benefits, it automatically conducts reviews for credit increases and waives the annual fee for the first year (after signing up for Autopay).
Who it’s best for: Individuals who want to access increased credit limits without paying an annual fee for the first year.
Rewards: This card does not earn rewards.
APR: 24.24% - 35.24% variable
Annual fee: $39, waived for the first year after signing up for autopay before the first statement is issued
Other benefits and drawbacks: Prospers offers automatic increases for qualified cardholders. You can determine if you pre-qualify without a hit to your credit, but be aware applicants will likely face a decrease in credit score when your new account is posted. With regular on-time payments, your credit score can quickly recover from a new account opening. And while this card charges a foreign transaction fee, it is significantly lower than other cards, if you need to shop abroad.
Although the card boasts it doesn’t charge ATM fees for cash withdrawals, we never recommend cash advances. The cash advance APR on this card is very high, and interest will begin to accrue from the moment you pull the cash.
Mission Lane Visa® Credit Card *
[ jump to details ]
The Mission Lane Visa® Credit Card* can earn rewards depending on the version you are approved for, and it reports card activity to the three major credit bureaus. However, the website lacks significant transparency, so if you’re not comfortable researching your credit card terms, this card may add a few additional obstacles. Your creditworthiness will determine both your annual fee, purchase APR and whether or not your card will earn cash back.
Who it’s best for: Those with poor credit who want to avoid paying a security deposit to access credit.
Rewards: 1%, 1.5% or 2% cash-back rewards for customers who pre-qualify for them.
APR: 19.99% - 33.99% variable
Annual fee: $0 - $59
Other benefits and drawbacks: Mission Lane’s website offers little insight into the card’s features and fee structure unless you’re willing to dig around for a cardholder agreement. The Mission Lane Visa’s annual fee ranges from $0 - $59. Even if you qualify for no annual fee, be aware of the other fees common to credit cards, like foreign transaction fees, late fees and cash advance fees. The Mission Lane Visa® Credit Card* offers few perks beyond basic Visa benefits like roadside dispatch and zero liability protection for unauthorized charges.
The Mission Lane Visa is not available to residents of Maine, Maryland, Nevada, North Dakota or West Virginia.
Credit One Bank® Platinum Visa® for Rebuilding Credit *
[ jump to details ]
Although the Credit One Bank® Platinum Visa® for Rebuilding Credit* comes with an annual fee, it offers cash back for certain spend categories as well as additional cash-back rewards at select retailers.
Who it’s best for: Consumers who want to earn cash-back rewards while building credit.
Rewards: Earn 1% cash back on eligible gas, groceries, mobile phone service, internet service, cable and satellite TV purchases.
APR: 29.74% Variable
Annual fee: $75 for the first year. After that, $99 annually (billed as $8.25 monthly)
Other benefits and drawbacks: Credit One monitors cardholders’ accounts for frequent credit increases. Credit One also offers some additional account benefits, including zero fraud liability and free access to your credit score. Keep in mind that the age of your oldest revolving credit account is factored into your credit score. So, it’s wise to choose a card you can keep open for several years, and that means the high annual fee on this card is a significant drawback.
This card also offers the opportunity to add an authorized user, which may be a good way to help a partner or family member build credit alongside you. Just know that each authorized user costs $19 annually, and this amount will be deducted from your line of credit.
Methodology
Forbes Advisor looked at dozens of offers to find and rank the best unsecured cards for bad credit. Factors considered include.
- APR
- Fees
- Opportunities to upgrade to unsecured cards
- Credit bureau reporting
- Store-specific benefits and rewards
- Rewards earning
- Rewards redemption options
- Other ongoing card benefits
Forbes Advisor rates cards both as stand-alone products (the card rating on the review) and compared to others in a specific use case. Sometimes, cards with average stand-alone ratings may still rank highly on a particular list according to how a person looking for a card in that category may value certain card features.
For instance, a card that might be considered mediocre overall could be the top card on a list of rewards cards with no annual fee. That’s because the card might offer limited features compared to other rewards cards, but after we remove cards that charge an annual fee, it’s the best card that remains.
Read more: How Forbes Advisor rates credit cards
Guide to Best Unsecured Credit Cards for Bad Credit
- What Is an Unsecured Credit Card?
- How To Choose the Best Unsecured Credit Card
- Unsecured vs. Secured Credit Cards
- How To Get an Unsecured Credit Card for Bad Credit
- Bottom Line
- Frequently Asked Questions (FAQs)
What Is an Unsecured Credit Card?
An unsecured credit card is a traditional credit card that doesn’t require cardholders to put down a deposit or collateral in order to use the card. However, if you have bad credit, you probably won’t be able to get approved for a premium unsecured credit card. If you choose to apply for an unsecured card, you’ll need to select one specifically for those with bad credit. While these cards don’t necessarily require a deposit, they often lack rewards and other benefits. They also may charge annual fees and, in some cases, monthly fees.
How Does an Unsecured Credit Card Work?
Unsecured cards work like regular credit cards. Users apply for the card online. Once they’re approved and receive the card, they can start making purchases anywhere the card is accepted.
However, unsecured credit cards for bad credit may require users to pay additional fees and likely have lower credit limits.
Pros & Cons of Unsecured Credit Cards for Bad Credit
Pros of Unsecured Credit Cards for Bad Credit
- Can help you build credit when used responsibly
- Usually carry lower credit requirements than other credit cards
- No security deposit required
- May earn rewards on card purchases
- Some cards allow you to prequalify without affecting your credit score
Cons of Unsecured Credit Cards for Bad Credit
- Lower credit limits
- Higher interest rates compared to some unsecured cards
- Fees can be high, including annual fees, monthly fees, late fees and cash advance fees
- Approval is not guaranteed
- Limited card features and benefits
How To Choose the Best Unsecured Credit Card
It’s best to follow the steps below when choosing the best unsecured credit card for you.
1. Know Your Credit Score
The cards on this list are for people with bad credit. Knowing your credit score will give you a better understanding of the cards you might qualify for. Many cards for those with bad credit won’t affect your credit score for pre-qualification, so it’s worth a try. To find out your credit score, go directly to any of the major credit bureaus—Equifax, Experian or TransUnion. View your score as a rough estimate since your creditor may use a different model.
2. Think About Your Spending Habits and Credit Options
Are you getting a credit card to rebuild credit or because you have a large purchase coming up? Will you be paying off the card right away or carrying a balance? These factors are really important in deciding which unsecured credit card to get. Things like APR and credit limits also matter, as do things like annual fees.
3. Weigh the Advantages and Disadvantages
Once you understand all of your options, it’s time to think about which card is the right fit. For those with poor credit, your options may be limited. You may want to look for a card with a low annual cost. You may also want to ask your bank or credit union about your credit card options through them.
4. Understand the Fine Print
Once you’ve decided on a card, read all the terms and conditions. More specifically, understand all fees, including the annual fee, late fees, foreign transaction fees and introductory or sign-up fees. Know the APR—and if there’s any introductory APR. Figure out if any preapproval processes will affect your credit score and how future credit limit increases work. Once you feel confident you know exactly what the card entails, it’s time to apply.
Unsecured vs. Secured Credit Cards
| Account Features | Unsecured Credit Cards | Secured Credit Cards |
|---|---|---|
Security Deposit | No security deposit required | Security deposit required |
Credit | Poor credit or better, applicant approval for no credit history often limited to student cards | Poor credit or better, often available with no credit history |
Credit Limit | Varies based on the card and creditworthiness | The credit limit is usually equal to the card’s security deposit |
APR | Higher APR ranges with some 0% intro APR offers | Higher APR ranges |
Rewards | Many earn rewards but may require a high credit score | Sometimes earn rewards |
Annual Fee | May charge an annual fee | May charge an annual fee |
Reports to Credit Bureaus | Usually | Usually |
How To Get an Unsecured Credit Card for Bad Credit
Even if you have bad credit, it’s still possible to get a credit card. The credit cards on this list are optimal choices for anyone who has bad credit but still wants to get an unsecured credit card. Considering the fees involved and that many secured credit cards return your deposit once you demonstrate responsible credit usage, you may want to consider the top secured credit cards.
Once you’ve chosen a card that you think is a good fit for you and your spending habits, navigate to the card’s website and click “Apply” or “Pre-qualify.” After submitting the required info, you’ll soon be notified if you’ve been approved or pre-qualified. Following approval, your card will usually arrive within seven to 10 business days. Activate your credit card and then you can begin using it for purchases.
How To Increase Approval Chances for Unsecured Cards for Bad Credit
Once you’ve checked your credit score, you’ll know if you need to dispute any items or resolve a debt. When you know your current credit situation, you can apply for the cards designed for your credit score.
Paying down debt balances, making on-time payments to any current lender and becoming an authorized user on someone else’s card can work to improve your credit. Your employment status and income also factor into your approval, so make sure to include all income sources when applying. It might be a good idea to learn more about improving your chances for credit card approval.
And if you’re denied? Your card provider must provide a reason for denying your application. If you disagree with their decision, it never hurts to call and ask for reconsideration.
Find the Best Credit Cards For Bad Credit of 2024
Learn More
Bottom Line
You may still be able to get a credit card, even if you have bad credit. In fact, an unsecured credit card specifically designed for those with bad credit (when used responsibly) can help you improve your score and boost your creditworthiness. You may still want to consider a secured card before assuming an unsecured card is the best choice for your wallet. As always, read the terms carefully before applying to any credit card.
The secured Self Visa® Credit Card requires an active Self Credit Builder Account and qualification based on other eligibility criteria including income & expense requirements. Criteria subject to change.
Frequently Asked Questions (FAQs)
Is it possible to get an unsecured credit card with bad credit?
Yes, it’s possible to get an unsecured credit card with bad or poor credit. Each of the credit cards on this list is geared toward people with bad credit. The cards don’t offer many rewards and may come with fees, but they are unsecured card options that can help you rebuild your credit. You may also consider a secured credit card.
Do unsecured cards build your credit score?
Potentially. No credit card guarantees an improvement to your credit score. Your score is an indicator of the risk creditors take on whether and how much they lend you. But nearly every credit card can help build your credit score if you make payments on time and keep your balance low. If your goal is to build credit, make sure your card provider regularly reports to the main credit bureaus.
Why can't I get an unsecured credit card?
If your credit is very low, you may not be able to get approved for an unsecured credit card. Issuers may want to have some leverage or collateral in place to minimize risk. In these circ*mstances, you might want to apply for a secured credit card to build up your credit. Once you have more established credit, you can try to get an unsecured card once your credit score has improved.
Is there a limit on an unsecured credit card?
Unsecured credit cards for bad credit often have lower limits than those for applicants with a high credit score. For example, many unsecured credit cards for bad credit may have a limit as low as $200 or as high as $3000, depending on the applicant’s creditworthiness.
Other Credit Cards To Be Considered
- Is Carrying A Balance Always Bad For Your Credit Score
- Best Student Credit Cards
- Best Credit Cards For Fair Credit
- Best Credit Cards For Millennials
- Capital One Secured Credit Card Review
- Discover it® Secured Credit Card
- Is No Credit Better Than Bad Credit?
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circ*mstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
