For good or bad, the number of available credit card offers on the market is overwhelming. However, for those with poor or bad credit history, it is still a problem to find an offer with no security deposit.
Banks and other financial companies aren’t very willing to extend unsecured products to those who have past failure to pay their credit obligations on time.
On this page, you will find some:
- What do an unsecured credit card and bad credit mean?
- List of 6 top unsecured credit cards for bad credit with no deposit required.
- Useful tips to help you choose the best offer for your needs. Infographic for free download.
An unsecured credit card is a type of credit card that doesn’t require you to make a security deposit as collateral. In other words, there is no need to make a deposit to receive the card.
In fact, the majority of credit cards are unsecured. You are expected to return a portion of the balance on a monthly basis, but the credit card company does not require you to deposit money in advance.
Actually, unsecured credit cards are designed for those with good or excellent credit history, and many unsecured credit card solutions provide rewards programs including cash back, miles, and etc.
And here comes the next question:
It is true that those with bad credit history have much fewer choices for getting credit cards.
The reason is credit card providers don’t want to take the risk of not getting paid from their debtors.
Despite it may be hard, you still can obtain a credit card with bad or poor credit. This is where bad credit card comes specially designed for those with damaged credit score and rating.
Top unsecured credit cards for bad credit with no deposit
- Milestone Gold MasterCard
This unsecured credit card is specially designed for those with less than perfect credit. It targets people with poor credit. The product is issued by Mid America Bank & Trust Company.
In addition, quick pre-qualification is available with no impact to your credit score. Practically, your credit won’t be damaged if you don’t meet the eligibility requirements. And if you need money urgently, the card has instant decision option.
The card is among the most popular on the market of credit cards with no deposit but bare in mind that it has a high annual fee and no balance transfer.
- Indigo Platinum MasterCard
Indigo Platinum MasterCard is another popular card for those with less than perfect credit. It provides quick pre-qualification (no impact to your credit score), only 60-second decision and mobile account access 24/7. Indigo Platinum is issued by Celtic Bank through a partnership with Genesis Bankcard Services, Inc.
As a fun bonus, you have the option to choose your custom card design for free.
Before deciding if you use this card or not, check its annual fee. Also be aware of the fact that it comes with a relatively high APR and a Penalty APR that the provider can request if you miss a payment.
- Total Visa Credit Card
If you are looking for unsecured credit cards for bad credit with no deposit and absolutely easy approval, Total Visa Credit Card is an option to consider.
Even if you are having a really bad credit score or you are in a bankruptcy, you may still be able to be approved for the Total Visa Credit Card. The approval process is very fast.
Among card features are: manageable monthly payments, reports monthly to all three major credit bureaus, accepted by merchants throughout the USA and online, checking account required.
Despite you don’t have to pay a security deposit, the Card has a number of costly fees that you should check carefully.
- Credit One Bank Platinum Visa
Actually, this is the top choice when it come to unsecured credit cards for bad credit with no deposit. This card comes with very reasonable fees and features that others simply do not provide.
Some of the top features are: the opportunity to pre-qualify without harming your credit score, no deposit requirements, flexibility to choose payment due date, cash back on eligible purchases and more. You can earn reward points for some kinds of purchases.
In addition, you can receive opportunities for credit line increases. However, this is still an unsecured card for bad credit, so there are some drawbacks such as the annual fee is charged to your account the date it’s opened. It means your available credit is reduced by that amount.
- Surge MasterCard
The Surge credit card is designed for people with poor credit history. After you complete their easy online application, your results will be ready in a matter of seconds!
This unsecured card has a number of features: all credit types welcome to apply, monthly reporting to the three major credit bureaus, fast and easy online application process, initial credit limit of $500, free online account access 24/7 and more.
And like the other unsecured credit cards for bad credit with no deposit, there are high fees and rates. Their high variable APR is something you would like to check before getting the card.
- First Access VISA Credit Card
This is also one of the top popular unsecured credit cards for people with poor or limited credit history who need to rebuild their credit. The online application is very easy and you get a response in as little as 60 seconds.
The card is issued by Mid America Bank & Trust Company, Member FDIC.
Keep in mind that the card has a lot of fees – a setup fee, an annual fee, a monthly service fee. On the other hand, if you are getting denied for many other cards, you may have a great chance at getting approved for The First Access VISA. To be able to improve your credit scores, always pay your bill on time and in full.
Getting unsecured credit cards for bad credit with no deposit can provide you with money when you need them the most. However, when you are in a hurry, chances to make mistakes are bigger.
Before choosing the credit card that suits you the best, take your time to research the features and drawbacks of each offer.
Useful tips and things to look at before choosing your card
- Never sign up to the first credit card you find.
Research options and narrow them down to a choice of 3-4. Compare interest rates, terms and read reviews.
- Check and compare fees
Unsecured cards come with a number of fees and they are higher than those on secured solutions. The fees can be an annual fee, late payment fee, over-the-limit fee, cash advance fee, easy pay fee, closed account maintenance fee, application fee and etc. Check all of them carefully.
- Do not forget: you spending money that you not actually have
The important thing here is that the money isn’t actually there. When you purchase with the card, you’re spending money you not actually have. The illusion of money that a credit card makes can encourage you to make purchases beyond the capacity of your monthly budget. If you over-spend, you can wind up deep in debt. Do not start a cycle of late or missed payments and fees.
- Interests are significantly higher
You know that credit card companies make a profit on the interest they charge. Customers with bad credit pay interest rates as high as 25 percent and or even higher, depending on your credit history. The reason is the perceived risk.
These interests are significantly higher than those secured cards provide for people with good credit score. Not to mention that compared to interest rates on almost every other loan product, the interest rate on unsecured credit cards is hugely high. Compare not only fees but interests.
- Check your credit score
Since your credit is average or poor, you are very likely to get stuck with higher interest rates. Either way, it is important to know where you stand and what to expect.
The credit score is a numerical expression of your creditworthiness and is held by three reporting bureaus – Trans Union, Experior and Equifax.
If you want details on your credit report, you can check out AnnualCreditReport.com. This service is sponsored by the federal government. It makes it possible to get a free copy of your credit report from the three credit reporting agencies. Each of the three reporting bureaus must give you a free credit report at least annually, agreeably to Federal law.
- Use your card wisely
Once you get approved for one of the unsecured credit cards for bad credit with no deposit, it’s crucial to take things slowly.
You should put only purchases you can afford on your card. A good tip here is to get used to paying the bill each month before you begin using the card more frequently.
Tips for choosing unsecured credit cards for bad credit: Infographic.