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In this era of consumerism, people sometimes need financial assistance, and the speediest way to get them is through credit. Credit cards can be the best way to access the buy now, pay later scheme, but getting a credit card isn’t always easy. Credit card companies have a long list of demands and requirements. You need prior credit scores and impeccable banking history. You need a significant, substantial, and excessive security deposit as collateral beyond an ordinary joe’s reach.
Also, if your credit record is insufficient or inadequate, or tarnished by some means, your existing credit can be affected by it and your future history. These are typically called secured credit cards. But where there’s a problem, there’s a solution. There’s an alternative method of access to credit called unsecured credit cards. And there are numerous options for unsecured credit cards for bad credit available for the market.
In this blog, we will provide all the ins and outs related to unsecured credit cards for bad credit. Read on to get all the info in a nutshell. Let’s get started now.
Comparison Table: Quick Overview of the Credit Cards
|
Card Name |
APR(%) |
Initial Credit Limit($) |
Fee($) |
|
Petal visa credit card |
24.24%- 33.74% |
$300 |
$0 |
|
Indigo Mastercard |
24.9% |
$300 |
$0- $99 |
|
Surge Mastercard |
29.9% |
$300 |
$75- $125 |
|
Credit one platinum card |
27.74% |
$300 |
$79- $99 |
|
Milestone Mastercard |
24.9% |
$300 |
$35- $75 |
|
Destiny Mastercard |
24.9% |
$300 |
$59- $99 |
Best Unsecured Credit Cards for Bad Credit
Bad credit can be a blemish in your financial track record and a bane in your life. It can compound into a holdback on your financial record for years to come. In such a situation, unsecured credit cards for bad credit can come in handy, but there is so many guaranteed approval credit card for bad credit options available that it can be intimidating trying to research and look through all the card features and still need to make the right decision.
Some cards have very high maintenance fees to very high annual percentage rates, while others have convenience fee structures, require low credit, and provide numerous cash benefits to their users at the same time, helping you to build or repair your credit. Lucky for you, we have taken the trouble of doing the research ourselves and listed the top 6 unsecured credit cards for bad credit that may be appropriate for you.
1. Petal Visa Credit Card
Petal visa credit card is one of the front runners when it comes to unsecured credit cards for bad credit. Created to mainly help people get access to credit, the specialty of this particular unsecured credit card is that judges someone’s creditworthiness on their banking and financial history, not on their credit score. Petal visa credit card’s sole purpose is to provide access to credit and educate the user to use the credit responsibly by facilitating access to budgeting tools and tracking your credit score. Annual percentage rates are meager compared to other unsecured credit cards for poor credit. Also, the benefit of increasing your credit limit manifold within six months of your usage is present. Building your credit from scratch through Cash Score is also a lucrative facility.
However, getting approval can be tricky if your banking record is embroiled in overdraft payments.
Pros:
- Annual percentage rates vary from 24.24% – 33.74%. APR is the sum of all the interest charged by the borrowers.
- The credit limit ranges from $300 to $5000, providing flexible purchasing abilities.
- You can increase your credit limit within six months of usage.
- It builds your credit score not only on your credit history but also on your banking history.
- You can create a credit score via Cash Score if you don’t have a credit score.
- Petal makes managing your finances easier, tracking your expenditure and automating your payment.
Cons:
- The biggest drawback of this card is that approval is not inevitable for all customers.
- Late fees for every payment can go up to $40.
- The returned payment fee is $29.
2. Indigo Mastercard
Indigo Mastercard offers guaranteed approval unsecured credit cards for bad credit. With no monthly maintenance fee, Indigo reports to all three credit bureaus to facilitate better scores. This card is great for you if you have a tarnished or damaged credit history. Indigo Mastercard offers easy provisions for checking your pre-qualification requirements. Unlike any other unsecured credit card, it doesn’t burden you with monthly fee payments. Indigo also doesn’t require you to submit any security deposit to qualify. However, the fee structure is unpredictable, with fees ranging from $0- $75 in the first year of its issue and then going up to $99 thereafter. Predictably that can get frustrating very quickly, but that’s an inconvenience you have to face if you want to build your credit.
The biggest advantage of Indigo Mastercard is protection from fraudulent transactions or authorized ones where your money is transacted without your consent. Indigo charges nothing for such fraudulent transactions and protects you from monetary loss.
Pros:
- You will need no collateral deposit to apply for a credit card.
- You don’t need to fret about your credit score being affected by applying for this credit card.
- Use your credit card with any merchant and point of sale wherever you can spot a Mastercard logo.
- Your unauthorized transactions won’t be charged, so you can spend peacefully.
Cons:
- The annual fee varies based on the lenders’ creditworthiness.
- Annual percentage rates can be very high.
- There aren’t any rewards and cash backs for using the card.
3. Surge Mastercard
Surge Mastercard is appropriate for people who need unsecured credit cards for bad credit with high limits. It is generally for people with limited credit or damaged credit. With features that enable you to increase your credit limit within half a year, it is a brilliant short-term solution for anyone looking for an unsecured credit card for poor credit. With over 2.6 million cards issued and managed since its inception, Surge Mastercard prides itself on offering credit access to people who are dejected by the mainstream credit market.
Surge Mastercard ensures its customer responsibly uses credit to the best of their abilities, which is why the credit is increased only based on the record of your card payments. Surge also reassesses your expenditure to keep track of your spending. The maintenance fee ranges from $75 to $125.
Surge MasterCard is accepted in various stores, anywhere where a merchant accepts Mastercard payments for a point on sale. The application procedure is swift and rapid, and results are available in seconds. With the facility of doubling your credit limit within six months, it can be very beneficial to increase your purchasing power.
Pros:
- The best feature of this unsecured credit card with poor credit is its inclusiveness. It is one of the guaranteed approval unsecured credit cards for bad credit.
- The credit limit is up to $1000, doubling to $2000 if you make your payments on time for your first six months of expenses.
- Surge manages your credit by reporting to three major credit bureaus so you can get credit scores from respected certifiers.
- The application process is easy, fast, and hassle-free; the result is available in seconds.
- You can use your credit card anywhere which accepts Mastercard.
Cons:
- Surge Mastercard has a very APR of 29.9%.
- The maintenance fee is charged monthly $10 after the first year.
- Like Indigo Mastercard, it also doesn’t have any provision for rewards or cash back.
4. Credit One Bank Platinum Card
Credit one platinum visa is one of the rare unsecured credit cards with poor credit with the facility of cashback and rewards. This credit card reviews your entire credit history and adjusts your credit limit accordingly. The biggest standout feature of this card is its lucrative facility of cashback, discounts, rewards, and bonuses. Credit One Bank Platinum card can help bring credit scores if you follow specific tactics. It is always prudent to make your payments on time, which is cheaper since the APR is above 27%. Also, make sure you make an effort to pay your dues in full for the same reason. It is also advised to keep your spending below 30% of your credit limit mark to improve your credit score.
The most lucrative offer of this unsecured credit card for poor credit is its cashback offer of 1% for essential commodities like gas, groceries, cell phone, internet bills, and cable service providers. This provides security to meet your essential costs without burdening your pocket.
Pros:
- One of the biggest highlights is the 1% cash back on gas bills, grocery bills, mobile phone purchases, and internet service providers.
- Like other unsecured credit cards, you get zero fraud liability and an alert system where your account is notified about authorized access.
- You can link your merchants who get to participate with your account.
- It also provides a Card Protection program, which keeps your credit score steady.
Cons:
- The card charges $79 for the first year and $99 subsequently.
- APR is as high as 27.74%.
- Despite the high cash back, it only can be accessed at the limit upwards of the initial credit limit of $300.
5. Milestone Credit Card
Do you have a challenging credit history? Worry not because this credit card is just for you. Milestone Mastercard adjusts your credit fee according to your credit history. Despite its high annual fee, it can be cheap and affordable if you manage to keep up your credit score. To pre-qualify, you must fulfill specific criteria. For instance, you have to be an adult of at least eighteen years of age. You mustn’t have a record of your previous application to milestone rejected or withdrawn due to delinquency. Also, you must have a valid identification card, an active social security number for verification, a certificate of income, and a debt record.
Its maintenance fee structure can get confusing sometimes, as it has three different plans for different ranges of creditworthiness, with gold 301, gold 302, and gold 322 charging $35, $75, and $59, respectively. This is one of the few unsecured credit cards for poor credit with a monitoring system to check and deter theft and unauthorized transactions.
Pros:
- This card offers credit on multiple levels with different fees; Gold 300 charges $35 annually, Gold 301 tabs $75 a year, and Gold 322 charges $59 a year, depending upon your creditworthiness.
- It has a high fee structure; however, you may be eligible for reasonable annual pay.
- The card’s theft monitoring system protects your account from unauthorized access.
Cons:
- The APR is high at 24.9%.
- The yearly fee can get expensive for some lenders.
- The initial credit limit is $300, severely limiting your buying power.
6. Destiny Mastercard
Destiny master card is an unsecured credit card for bad credit to fair credit, where you can pre-intimate whether you qualify for the credit card. This Mastercard has other features, such as liability protection for an unauthorized transaction, and doesn’t require a safety deposit. One word of advice: keep paying your balance every month, and you take advantage of this card to the fullest extent. With no rewards, destiny can go a long way in helping to build your credit score. However, Destiny Mastercard can be disadvantageous due to its high annual percentage rate of 24.9%.
Pros:
- With an annual fee range of $59- $99, this unsecured credit card can be an affordable way to redeem your credit score for some users.
- The foreign transaction fees are also affordable, making it a viable option for traveling.
- Also, the uniqueness of this card is that it tells you whether you meet the criteria for the card even before you apply.
Cons:
- The annual fee can be unpredictable for some users as it depends on your credit profile.
- The APR stands at 24.9%, which is very high.
- No cash back, discounts, or rewards are provided.
Applying for the Unsecured Credit Card
One of the most significant disadvantages of unsecured credit cards is the long processing period. The pre-qualification process of judging your eligibility for your access is swift and rapid, but the process after that can have long waiting periods. Here are some methods to apply for some of the best unsecured credit cards for bad credit.
1. Petal Visa Credit Card
Here are the steps to follow to apply for the Petal Visa Credit Card:
- Log in to their website and click on apply.
- It will direct you to their application form.
- You will be asked to fill out details such as your email address, legal name, residential address, state, and zip code.
- Scroll down the page, and you will be asked to fill out your SSIN, which stands for security and surveillance information network.
- Click continue, asking you to link to any of your existing bank accounts.
2. Indigo Mastercard
The steps to apply to the Indigo Mastercars are as follows:
- Go to Indigo Mastercard’s official website.
- If you haven’t registered before, click on the “Get started” option on the top right of the webpage.
- You will redirect to the page where you have to fill up details such as your name, email address, social security number, etc.
- Click on continue.
- The pre-qualification process will start and will take a few days to review your credit profile.
3. Surge Mastercard
Below are the steps to apply for Surge Mastercard:
- The official front page of the website of surge MasterCard will show a “Apply now” option.
- Click on it. You redirect to the page where you wi to complete the application process.
Unsecured Credit Card: Definition, Features, and Benefits
Among many other methods of accessing credit in the market, a credit card is a viable option for short-term loans with sometimes high interest. However, as part of the standardized lending market, applying for a credit card can be arduous and complicated. Not only do you have to meet specific criteria regarding income, some credit card demand staggeringly high-security deposits as collateral. Even then, it is not enough to fulfill the application procedure. Maybe you won’t have a good credit score, or maybe during bad times, your credit has been tarnished, which is more than enough reason to fall short of qualifying for a credit card. These types of credit cards are called secured credit cards.
But other types of credit cards don’t have such stringent requirements to meet the criteria. Such cards do not require you to submit a security deposit, nor do they need any prior credit score record. These cards come in multiple facilities, from budgeting regulations to building credit scores from scratch. Such cards are called unsecured cards.
Benefits of Using an Unsecured Credit Card
- Building your credit: Unsecured credit cards for poor credit can be a good way to build your credit score from scratch. Also, it can be beneficial for all those lenders with damaged or bad credit histories to redeem their financial record
- Guaranteed approval: Guaranteed approval unsecured credit cards for bad credit is hassle-free and relies on prequalification criteria, which can speed up the application process.
- No security deposit: Unsecured credit card for bad credit requires no security deposit to be eligible for access or application, making it accessible to anyone with no substantial wealth.
- No prior credit: No prior credit score also gives guaranteed approval unsecured credit cards for bad credit. Also, if your credit history is thin, it still holds no bar.
- Adjustable maintenance fee: There are no fixed maintenance fees in an unsecured credit card for poor credit. Most unsecured credit cards have an adjustable fee that can be lowered or waived by achieving milestones in spending or on-time payment of dues.
Waiting Time for Unsecured Credit Cards
Different banks and credit card companies have different approval times for unsecured credit cards. While some credit card companies have predetermined which they notify you after completing your eligibility process, others don’t have any prerequisite time to sanction your credit card. That depends upon many factors, such as the procedure through which your application goes is different in different banks.
For example, Capital One sanctions your unsecured credit card for bad credit six months after you opened the account. American bank has no predetermined time.
Also, it depends on where you’re getting your unsecured credit card. Some banks offer secured credit card holders to upgrade their cards to bad credit credit cards unsecured in times of great turmoil. This process is called credit card graduation. In this process, the security deposit taken from the user at the time of its issue is refunded to the user and upgraded. But for the entire process to happen, the user must have an impeccable credit score, no black spots on their financial record, and no default on previous loans or overdrafts.
Building Credit Score with an Unsecured Card
Unsecured credit cards are the best option to build credit from scratch. Unlike secured credit cards, which require a considerable security deposit as collateral, unsecured credit doesn’t have that hassle and restriction. You can apply for an unsecured credit card without any prior credit or damaged credit, which will help you repair your score with time. Numerous credit card companies have access to budgeting facilities that manage your credit and alert systems to control and check your expenditure. Also, it has an innumerable fee structure for maintenance, which is adjusted as you reach different milestones.
Petal visa credit card has no annual fees and requires no prior credit to apply for your card. Milestone Mastercard has three stages of maintenance fees: Gold 300 charges $35 annually, Gold 301 tabs $75 a year, and Gold 322 costs $59 a year, depending on your creditworthiness.
But one must also be wary of making payments on time. Many of these unsecured credit cards for bad credit have high annual percentage rates (APR), the total sum of all the interest charged. Also, if your credit score slips, maintenance fees can rise.
FAQs
Q1. Can I get an unsecured credit card with a 500 credit score?
Destiny Mastercard allows you to get approval with a 500 credit score or below. With the Petal Visa Credit card, you require no credit at all. Your approval will be based on your banking history.
Q2. What unsecured credit card can I get with no credit score?
Petal 1 Visa credit card guarantees approval for no credit score. You can build your credit score from scratch via Cash Score. Other than that, Milestone Mastercard also provides approval for credit for challenging credit scores.
Conclusion
Unsecured credit cards can have tangible benefits on your financial record, both short-term and long-term. However, one must be careful in handling these unsecured credit cards as they make delicate situations even worse. Some have extremely high APR, and others have complex fee structures. Also, many of them don’t have much reward system or cashback as well as high maintenance. The user should read all the terms and conditions carefully before signing up for any credit card, especially the unsecured ones.
We advise the user to steer clear of any scams and fraud, especially over the phone and emails. Please do not divulge any personal banking details, such as account number or social security number, over the phone or to anyone who’s not a bank employee. Stay in touch with your bank and call the concerned authority if needed.
