Poor credit score or score below 579 , a wrinkle in almost any financial plan, including when you want to get a credit card. Like it or not, most credit card issuers will demand good or good credit (670 to 850) to take advantage of the best offers. However, if you have at least fair credit, or a FICO score in the 580 to 669 range, you may be able to take advantage of more offers, especially for unsecured credit cards.
Secure credit cards are a popular option for those with poor credit, but these cards require a security deposit up front. If that doesn't sound appealing, you should consider an unsecured credit card for bad credit. All of these allow you to borrow money and build credit without paying a security deposit.
Contents
- 1 Credit in 2023 Best Unsecured Credit Cards for Bad Credit
- 1.1 Credit One Bank Platinum Visa for Rebuilding Credit: Earn Cash Back Perfect for
- 1.2 Mission Lane Visa Credit Cards: Best for Low Annual Fees
- 1.3 Indigo Mastercard: Great for International Travel
- 1.4 Petal 1 “No Annual Fee” Visa Credit Card: Great for No Annual Fees
- 1.5 Capital One Platinum Credit Card: Great for Fair Credit
- 2 What to Look for in Unsecured Credit Bad Credit Cards
- 3 How to Repair Credit on a Credit Card
- 4 When a Secure Credit Card Is Right for You
- 5 Conclusion
Credit in 2023 Best Unsecured Credit Cards for Bad Credit
Before we get to the point, it should be noted that there are not many unsecured credit cards available for bad credit. Those that do have annual fees, low credit limits, and are likely to have few or no perks.
Credit One Bank Platinum Visa for Rebuilding Credit: Earn Cash Back Perfect for
Credit One Bank® Platinum Visa® for Rebuilding Credit* is a popular unsecured credit card available to consumers with low credit. Use this card to earn 1% cash rewards on eligible gas and grocery purchases, mobile phone, internet, cable and satellite TV service (conditions apply). You also get access to a free credit score. This allows you to track progress and build credit.
But don't let the cashback distract you from the serious downside. The card has an annual fee of $75 for the first year and an annual fee of $99 thereafter. It probably doesn't make sense to choose this card for cash back because you have to spend $9,900 a year within the eligible 1% cash back category to get that $99 fee. Instead, consider a no-annual-fee option, or one with a lower annual fee.
Pros:
- 1% cash back on popular spending categories
- Free Access to Credit Scores
- Prequalify without rigorous credit report reviews
Cons:
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Mission Lane Visa Credit Cards: Best for Low Annual Fees
If you're looking for an easy, unsecured card to help you build your credit, the Mission Lane Visa® credit card might be for you. With a low annual fee of up to $59 and no hidden fees common to many subprime cards, it's a notable unsecured credit card with low credit ratings. Additionally, depending on your creditworthiness, the annual fee may be as low as $0.
Pros:
- $0 annual fee depending on creditworthiness
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- Credit limits may be increased after 6 months of timely payments
- Report to all three credit bureaus
<Cons:
- Up to $59 annual fee (offer by Bankrate, otherwise up to $75 annual fee)
- Minimum starting credit $300 Limit
- No Rewards
Indigo Mastercard: Great for International Travel
If you have a very low credit score or have declared bankruptcy If you have received an Indigo® Mastercard®, we encourage you to consider it. In general, there are few perks, but they help build credit so you can qualify for better cards in the future.
However, if you travel internationally frequently, be aware that this card has a 1% international transaction fee. This fee is much lower than other similar cards that typically charge a 3% foreign transaction fee. However, if you have at least fair credit, you may be able to get a card that doesn't charge foreign transaction fees.
Pros:
Cons:
- Up to $99 annual fee
- No Rewards
- Maximum Credit Limit is $300
Petal 1 “No Annual Fee” Visa Credit Card: Great for No Annual Fees
The Petal® 1 “no annual fee” Visa® credit card is recommended for consumers with no credit history, but consumers working to rebuild their credit may qualify for this card. not. Best of all, Petal 1's “no annual fee” Visa credit card may consider alternative data, such as banking history, for authorization, so past credit mistakes may be given less weight.
This card is a credit card with no security deposit or annual fee. Credit limits range from $300 to $5,000 and you can get a credit limit increase if you make timely payments for 6 months or more.
Pros:
- No annual fees or foreign transaction fees
- Report to 3 credit bureaus and help build credit
- Prequalify without rigorous credit report scrutiny
Cons:
- Higher interest rate potential (Variable APR range from 23.74% to 33.24%)
- Credit limit available up to $300
- Benefits is limited to special offers from select retailers
Capital One Platinum Credit Card: Great for Fair Credit
You might put yourself in the “poor credit” bucket because you know your score isn't ideal, but there is a difference between low credit cards and fair credit in terms of which cards qualify. There is a big difference. The Capital One Platinum Credit Card is available to consumers with fair credit, including FICO scores between 580 and 669.
This card does not offer benefits, but you can pre-qualify. Submitting a credit report can increase your credit limit in as little as six months. Best of all, there is no annual fee.
Pros:
- Pre-qualify online without rigorous credit report checks
- Only 6 Possibility of monthly credit limit increases
- No annual fees or foreign transaction fees
Cons:
- Variable APR as high as 28.49%
- No reward for spending
What to Look for in Unsecured Credit Bad Credit Cards
Not all bad credit unsecured credit cards are the same, so compare the card and all its details to find the right one. need to find stuff.
What you need:
Apply for an automatic credit limit increase. An unsecured card with poor credit may start with a lower credit limit. However, in many cases, you can qualify for a higher credit limit in as little as six months. This not only expands your purchasing power, but may improve your credit score.
An application process that considers factors other than credit score. Some low credit cards, such as the Petal 1 “no annual fee” Visa card, look at factors such as your banking history to see if they can be approved. This is useful if you have a very low credit score or no credit score at all.
Reporting to major credit bureaus. You'll need to make sure the card you're considering reports balances and payments to three credit bureaus: Equifax, Experian, and TransUnion. Ultimately, this report will help build credit in the long run.
What you don't need:
- High annual fee. Unfortunately, annual fees are common with low-quality unsecured credit cards. If possible, try to choose a card with no annual fee or a low annual fee.
- Hidden Fees.In addition to looking for a card without hefty annual fees, look out for hidden fees such as application fees and monthly account fees. If you travel internationally, you should also consider a card with no foreign transaction fees.
- High interest rates. If you plan to carry balances regularly, look for a card with a reasonable floating rate.
How to Repair Credit on a Credit Card
Repairing credit on a credit card can take some time, but the steps are the same for everyone. help you get results.
- Always pay bills on time. The most important component of your FICO score is your payment history. Therefore, you should try to pay all your bills early or on time every month. Even if on-time payments contribute to your score, late payments can have disastrous consequences.
- Minimize Debt Levels. I'm there. For best results, keep your balance below 30% of your available credits. So if your credit limit is $300, keep your balance under $90.
- Request a credit limit increase as soon as possible.If you have a balance, increasing your credit limit may default to lower utilization. If you are eligible for an increase in your credit line, you must increase it at any time. But be careful not to add more debt. Otherwise, you cannot live a better life.
When a Secure Credit Card Is Right for You
If your credit score is low and you are not getting authorization for your unsecured credit card, don't be afraid to use a secure credit card. Look for the card Cash deposits may not seem ideal, but using a secure credit card gives you the chance to build credit that other cards don't. Additionally, many secure credit cards offer perks and no annual fees. Once your score improves, you can upgrade to a non-secure credit card.
Finally, remember that your security deposit is not lost. If you close or upgrade a secure credit card in good standing, you'll get your full security deposit back.
Conclusion
The best unsafe credit cards with poor credit may not be. Exactly what you want, some allow you to borrow money to build your credit and some even offer rewards. You can get a better credit card, but before choosing a card, check out some of the credit cards with low credit and top credit cards with fair credit.
*Information regarding Credit One Bank® Platinum Visa® for Rebuilding Credits is independently collected. By warnow.biz. Card details are not verified or approved by the card issuer.