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Best unsecured credit cards for bad credit

Poor credit can narrow your credit card options, but there are still options.

Bethany Hickey's headshot
Steven Dashiell's headshot

By

Bethany Hickey

&

Steven Dashiell

Edited by

Holly Jennings

Updated

Fact checked

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Credit cards can be useful tools for emergencies, traveling or earning those oh-so-wonderful cashback rewards. If you have bad credit, you’ve likely heard of secured credit cards, but those typically come with low credit limits and require a cash deposit.

Just because you have poor credit doesn’t mean you’re out of the running for an unsecured credit card — here are the five best unsecured credit cards for bad credit with no security deposit required.

5 best unsecured credit cards for bad credit

Best overall

Petal® 1 "No Annual Fee" Visa® Credit Card

9 Excellent

The Petal® 1 "No Annual Fee" Visa® Credit Card — yes, that's the official name — is an unsecured card with no annual fee. It provides 2% to 10% cash back at select merchants, doesn't have a credit score requirement and offers a potential credit limit increase after six months with on-time payments. There's also credit score tracking within the app, and there are no foreign transaction fees. But like most cards designed for poor credit, watch out for the high APR.
Welcome Offer n/a
Rewards Up to 10 % cash back
Annual fee $0
Minimum credit score 550

Arro Credit Card

9.2 Excellent

Go to site
The Arro Credit Card offers a low intro APR and doesn't require a deposit or a hard credit inquiry. There is a soft check, and if you're approved, your credit limit starts at $50 to $200, with a maximum limit of $2,500. Completing in-app activities may qualify for credit limit increases and APR reductions. The Arro card also features one of the lowest APR ranges on this list, offering a 16% intro APR for the first six months, followed by a 16% variable APR, with opportunities for rate reduction. You will need to link a bank account with a balance of $50 or more, and your annual fee depends on your creditworthiness for the first year.
Welcome Offer n/a
Rewards Statement credits, credit line increases, and exclusive offers
Annual fee $36

Prosper® Card

This card is designed for those looking to build or rebuild their credit history. It has a $59 annual fee, but you can waive it for your first year if you enable autopay before your first statement. It offers an initial line of $500 to $3,000, with chances of increases. As a nice perk, Prosper also offers access to courses and content on financial topics, but there's no rewards program.
Welcome Offer n/a
Rewards None
Annual fee $59

OneMain Financial BrightWay® credit card

This unsecured card is designed to help users build credit, with the potential for credit limit increases, APR reductions and rewards after six months of responsible use. If you become eligible for the rewards, you can earn unlimited 1% cash back on all eligible purchases. The card offers a credit limit of up to 2,000, a 35.99% variable APR and an annual fee of up to $89. However, OneMain Financial is offering a limited number of these cards, and you must have an offer code to be eligible.
Welcome Offer n/a
Rewards Up to 1 % cash back
Annual fee $89

Credit One Bank Platinum Visa for Rebuilding Credit

Another long name, the Platinum Visa for Rebuilding Credit by Credit One is tailored for those rebuilding credit, offering a minimum credit line of $300. Earn 1% cashback rewards on eligible gas, groceries or select monthly bill payments. You also get access to credit score tracking and a free membership for Experian IdentityWorks. There's a 28.99% variable APR, and the annual fee is $75 for the first year, increasing to $99 afterward. You may need fair credit to qualify, typically around 600, but preapproval is available.
Welcome Offer n/a
Rewards 1 1 % cash back
Annual fee See terms

Methodology: How we chose the best unsecured credit cards

Finder’s experts compare over 130 credit cards from various financial institutions. We only considered unsecured credit cards for this list, those with low annual fees and ones that accepted no credit history or poor credit history.

  • Must be unsecured (no deposit required)
  • Annual fee below $100
  • Flexible credit score requirements
  • Reports to all three credit bureaus
  • Widely available in all or most states

What’s the catch with bad credit credit cards?

The most obvious “catch” with bad credit credit cards is the potential for a very high interest rate. As a general rule, lines of credit available to all credit score ranges are unlikely to offer the best APRs available, as low rates are typically reserved for those with good credit.

There’s also no federal law that limits what interest rate you can get with a credit card unless you’re an active-duty military member, in which case that rate is capped at 36%.

The good news is that you can entirely avoid interest charges with credit cards. Credit card interest is what you pay when you carry a balance from month to month. If you pay off your balance every month in full and on time, you avoid interest charges altogether.

Unsecured vs. secured credit cards

Unsecured credit cards don’t require a security deposit, whereas secured cards do. The security deposit is what “secures” the card, and if you can’t repay your balance when you close the account, the deposit covers it. For this reason, your deposit amount determines the credit limit for most secured credit cards.

Unsecured credit cards are typically harder to qualify for than secured options because they do not require an upfront cash deposit. If you struggle to qualify for an unsecured credit card, you may want to explore secured cards.

Can credit cards improve my credit score?

Yes. By staying on top of payments, keeping your owed balance low and having a mix of different lines of credit, responsible credit card usage can help improve your credit rating.

Making on-time credit card payments can improve your credit score, as payment history makes up 35% of your FICO score. Keeping your balances low on credit cards also helps with your credit utilization ratio, which factors how much you owe compared to how much credit you’ve been approved for. Adding a credit card to your credit file — considered a line of revolving credit — can improve the credit mix category, as well.

When you first apply for a credit card, you may see a slight decrease in your rating due to the hard pull, but credit scores tend to bounce back from those within a few months or so.

Pros and cons of unsecured credit cards

Unsecured credit cards don’t require a security deposit, but they may be tricky to qualify for if your credit history isn’t in tip-top shape.

Pros

  • Chances for increase. Most unsecured credit cards offer credit limit increases if you maintain a positive payment history.
  • No security deposit. Unlike secured credit cards, unsecured credit cards don’t require a cash deposit.
  • May offer rewards. A main perk with credit cards is the potential for rewards, often in the form of cash back or travel miles.
  • Improve credit rating. With responsible use, a credit card can increase your credit score.

Cons

  • Hard to get with bad credit. Unsecured credit cards usually require a decent credit score, save for a few options.
  • High APRs. Credit cards designed for poor credit tend to come with high APRs, often around 25% to 35.99% variable.
  • Risk of debt. If you’re not careful, overspending with a credit card can result in hard-to-pay-off debt that builds interest quickly.

Compare top credit card options

Narrow down top credit cards by APRs, annual fees and perks. For a better comparison, tick the Compare box on multiple options to see the benefits side by side.

3 of 54 results
Finder Score Filter values Rewards Annual fee Purchase APR
Current Credit Building Card image
Finder score
9.2 Excellent
Current Credit Building Card
Finder score
9.2 Excellent
Up to 7% cash back
$0
0% APR - Purchases are made using your Current Account balance
Build credit with every swipe using only the money in your account, no matter your credit history or score.
Go to site View details
Compare product selection
Step Black Card image
Finder score
8.6 Great
Step Black Card
Finder score
8.6 Great
Up to 8% cash back
$0
Safely build credit without a credit check or credit history while earning savings rewards and cashback.
Go to site View details
Compare product selection
Arro Credit Card image
Finder score
9.2 Excellent
Arro Credit Card
Finder score
9.2 Excellent
Statement credits, credit line increases, and exclusive offers
$36
From 16% variable
An unsecured credit card with no hard credit check and no security deposit required. It offers a credit limit of up to $200 to start and can increase up to $2,500.
Go to site View details
Compare product selection
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Showing 3 of 54 results

How the Finder Score helps you find a better credit card

The Finder Score is a simple score out of 10. The higher a savings account's score, the better we think it is for the average customer.

We score each credit card in our database of hundreds based on a data-driven methodology with 3 main criteria: Does the card offer rewards? Does the card have an annual fee? What's the card APR%?

Bottom line

Ultimately, a bad credit rating can significantly impact your lifestyle, making it difficult to get a car, a home loan or other forms of credit.

If you struggle to qualify for secured or unsecured credit cards due to a poor credit rating, consider other options, such as prepaid credit cards, credit-building apps or credit-building loans, to increase your chances of qualifying for a traditional credit card in the future.

Holly Jennings's headshot
To make sure you get accurate and helpful information, this guide has been edited by Holly Jennings as part of our fact-checking process.
Bethany Hickey's headshot
Written by

Banking editor

Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto. Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt. Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others. Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio

Bethany's expertise
Bethany has written 493 Finder guides across topics including:
  • Personal finance
  • Banking
  • Auto loans
  • Insurance
  • Cryptocurrency and NFTs
Steven Dashiell's headshot
Co-written by

Senior writer

Steven Dashiell is an editor for Bankrate and CreditCards.com and formally a personal finance writer at Finder, specializing in credit cards, banking and growing and protecting your income. His insights and expertise has been featured on Nasdaq, U.S. News & World Report, Time, CBS, ABC, Fox Business, Lifehacker and Martha Stewart Living, among other top media. Steve holds a BA in English from University of Maryland, Baltimore County, minoring in composition and rhetoric. In his spare time Steve nerds out on birds, paints and plays a whole lot of Street Fighter. See full bio

Steven's expertise
Steven has written 46 Finder guides across topics including:
  • Credit cards
  • Budgeting and saving
  • Rewards programs
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