Credit Cards

What Unsecured Credit Card Is The Easiest To Get

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 6 minute read

If you have bad credit, you may still be able to acquire an unsecured credit card—and it may be your best option. Using a credit card is really convenient for shoppers. They may be used in a wide range of settings, including online. Even if you don’t plan on borrowing money in the near future, credit cards are an excellent method to improve your credit rating.

Secured and unsecured credit cards are the two most common varieties. The general consensus is that if you want an unsecured card, you need strong credit. Unsecured credit cards for those with weak credit do exist, though. This information is essential.

How secured vs. unsecured credit cards are different

In order to open an account with a secured credit card, you must deposit a certain amount of money (or security). The credit limit on your card is set by the amount of money you put down as a down payment, which is usually refundable. In the event of a default, the issuer may utilize the money you put down as a deposit to make up for its losses.

An unsecured credit card, on the other hand, does not require a deposit. The card issuer, on the other hand, just cares about your credit history. In the event that you fail, the issuer bears the risk because there is no security to fall back on.

Why you might want to get a secured card

Those with bad credit or no credit at all may benefit from a secured credit card. In addition to the security deposit, the credit limit on these cards might vary from one card issuer to the next. Depending on the card you pick, you may also be eligible for features like free credit monitoring or travel accident insurance. You won’t have to pay a security deposit if you have an unsecured card, but you may have to pay an annual fee.

A guaranteed credit limit is another benefit of a secured card. This benefit is only available if you have the money to put down as a deposit. Secured credit cards normally grant you a credit limit equal to the amount of money you put down. If you apply for an unsecured credit card for people with weak credit, your credit limit may be as little as $500, and you won’t know until you’re authorized what it will be. As a college student with a spotty credit history, my first unsecured credit card had a $200 credit limit.

Secured credit cards might even provide benefits in the form of cashback. Spending on Amazon, Uber, Uber Eats, Whole Foods, Netflix, and Spotify will earn you 2% back; all other purchases will earn you 1% back with the Sable Secured Credit Card. During the first year, you’ll get a dollar-for-dollar match on the cashback you earn, and the yearly cost is nothing. 

After a period of time, you may also be eligible to upgrade to an unsecured card.

When it comes to building credit, a secured credit card might be a fantastic option if you’re seeking certain rewards as well as the potential to have an established line of credit. A secured credit card may not be necessary, though. You may also want to consider using an unsecured credit card.

Reasons to obtain an unsecured credit card

Unsecured credit cards made exclusively for those with poor credit might help you get started in the world of credit if you don’t have the money for a deposit. In addition, an unsecured card may have a greater credit limit than a secured card. Your creditor may take a chance on you because your credit limit isn’t tied to a deposit.

Once again, you don’t put your money in danger with an unencrypted card. Your deposit might be promptly forfeited by creditors if you default on a secured credit card. Using an unsecured credit card does not entail the same amount of danger. In order for a creditor to get their hands on the money you owe them, they must take further procedures.

With poor credit, can you acquire an unsecured credit card?

Unsecured credit cards, even if your credit is less than perfect, are still available to you. You may either rebuild your credit or start from scratch with a certain type of unsecured credit card. Unsecured credit cards for those with poor credit sometimes have a limited credit limit, to begin with, so be aware of this before you apply (although this can be a good thing to keep you from getting in over your head again).

In addition, yearly fees on some unsecured credit cards for those with weak credit can be rather high. Finally, the interest rate on many of these cards may be pretty high – frequently in the neighborhood of 20%. (annual percentage rate). To prevent high-interest charges, you’ll need to pay off your credit card each month. All of this is to indicate that even if you have terrible credit, you may receive an unsecured card if you read the tiny print carefully.

You may want to look into unsecured credit cards if you have poor credit.

These four unsecured credit cards might be a good choice for people with bad credit. Even if you don’t satisfy all of the requirements, you may be able to start repairing or building your credit without having to pay any fees.

Credit One Bank Platinum Visa For Rebuilding Credit

The Credit One Bank Platinum Visa For Rebuilding Credit may be a fantastic option for people with terrible credit because you don’t have to have excellent credit to be approved for this card. When it comes to incentives and fees, your credit history may have an impact on both. Plus, you’ll be able to keep tabs on your credit history because Experian provides you with a free credit score each month. Depending on the card you choose, you may potentially be eligible for cashback. However, there is a $75 $99. the yearly cost to keep in mind.

Petal 1 Visa Card

A card with a greater minimum credit limit, such as the Petal 1 Visa Card, maybe a good option for you. The initial credit limit is from $500 to $5,000, however, your actual credit limit will be determined by your creditworthiness. For example, cardholders may earn 2% to 10% cashback at certain retailers and use the Spending Planner budgeting software, which is available free of charge.

Anyone with a limited credit history might benefit from the Petal 1 Visa. You may be eligible for this card even if you don’t have a credit history or credit score.

FIT Mastercard Credit Card

A $400 credit limit on the FIT Mastercard Credit Card can be doubled to $800 when six on-time minimum monthly payments are made. E-statement subscribers have access to Experian’s Vantage 3.0 score for free. The annual charge for this card is $99 (with a one-time processing fee of $89.00 and a monthly maintenance fee of $75, paid at $6.25 per month (the monthly maintenance price is not invoiced for the first 12 months)).

Destiny Mastercard

Destiny Mastercard applicants don’t have to worry about their credit scores being negatively affected by the application process. You may pre-qualify for Destiny without harming your score. To help you establish or repair your credit, your payments will be recorded to all three major credit bureaus.

Depending on whatever card you qualify for, your annual cost might range from $59 to $75 the first year, and then $99 each year after that.

The reasons for our selection of these credit cards

In addition to their costs and benefits, these credit cards are able to accommodate a wide range of credit histories. The Petal 1 Visa Card may be a good option for you if your credit history is lacking due to your age or status as a student. Many people may be able to qualify for the Credit One, FIT, and Destiny cards, which are specifically designed for persons with bad credit (although in extreme cases, you might be rejected).

Equifax, Experian, and TransUnion receive information from each of these cards. To increase your credit score over time, your payment history will be included in the report.

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