Best Unsecured Cards for Bad Credit
Building up your credit score is an extremely important aspect of your financial freedom and independence.
1. Chase Freedom Rise Credit Card
Pros
- $0 annual fee.
- 1.5% cash back on all purchases.
- $25 statement credit for enrolling in automatic payments.
Cons
- Typically low credit capacities.
The Chase Freedom Rise credit card is great for those of you with new credit or bad credit scores! With a $0 annual fee and 1.5% cash back on all purchases, this is a great card to use to build up your credit score without having to pay any hefty security deposits or annual fees on the card.
The only real downside to this card is the typically low credit capacities that are offered for applicants; however, if you’re simply looking to build up your credit score and improve it, this card should work just fine!
2. Upgrade Cash Rewards Visa
Pros
- Unlimited 1.5% cash back on payments.
- $0 annual fee.
- $200 bonus when you open a Rewards Checking Plus account and make 3 debit card transactions.
- Higher credit capacities.
Cons
- Recommended “fair” credit scores, a bit higher than “bad”.
The Upgrade Cash Rewards Visa is an interest credit card prospect for those who might have bad credit but are approaching fair credit. Offering 1.5% cash back on payments, a $0 annual fee and a $200 bonus when you open a Rewards Checking Plus account, there are a lot of options for you to earn some money back on your purchases.
The only downside to this card is that it is recommended that you have fair credit or slightly below fair credit, which might be a hurdle depending on how bad your credit is!
3. Credit One Bank® Platinum Visa
Pros
- 1% cashback on popular spending categories like gas stations and grocery stores.
- Free credit score access.
Cons
- Credit limits are as low as $300, depending on your credit score.
- $75 annual fee.
- $99 annual fee after the first 12 months.
The Credit One Bank Platinum Visa is a somewhat unique credit card for applicants with bad credit. With credit limits as low as $300 and a $75-99 annual fee, this card certainly has some more hurdles or disadvantages than some of the cards mentioned above.
On the contract, you’ll get access to free credit score reports to see how you’re progressing and you’ll earn 1% cashback on virtually all of the popular spending categories. If you’re primarily looking for a suitable cash-back option, this card is what you’re looking for.
4. Mission Lane Visa
Pros
- $0 annual fee (dependent on your creditworthiness).
- 7 months of on-time payments will make you eligible for an increased credit capacity.
- No hidden fees.
Cons
- $59 annual fee (dependent on your creditworthiness).
- Credit limits are as low as $300.
If you’re looking for a straightforward option to help build up your credit score, the Mission Lane Visa is likely a great option for you. Offering no hidden fees, potentially $0 annual fee and the ability for increased credit capacity, this card is a great option for individuals with new or bad credit looking to gain some long-term health and age to their credit score.
5. Petal® 2 Cash Back Card
Pros
- No credit history is required.
- Pre-approval without any required credit check.
- 1% cash back on eligible purchases.
- No late fee, foreign transaction fee or annual fee.
Cons
- Low initial reward rate.
- No sign-up bonus or intro-APR.
- Potentially high APR.
The Petal 2 Cash Back Card is a great option for applicants who have little-to-no credit history and are looking to earn some cash back on their purchases. With absolutely no fees and a pre-approval without any required credit check, this card is a great option if you have a bad credit score that you’re looking to improve upon!
Rebuild Your Credit
Unfortunately, many people have difficulty when it comes to credit cards; whether it’s a lack of discipline or some financial hardship, finding the right credit card for you is a huge decision.
For individuals with bad credit, some of your best credit card options will be secured credit cards which require you to put up a lump sum deposit upfront. If you were to go with a secured credit card, your credit limit would be capped and selected based on the amount of money you put up in your deposit.
When it comes to having bad credit, repairing that damaged credit is a long and arduous process – that doesn’t mean it has to stop you from finding suitable, unsecured credit cards!
All five of the credit cards mentioned above are great options for applicants with bad credit. Compare the pros and cons of each and, depending on your personal situation and circumstances, you will find the best card to help build up your credit score.