Best unsecured credit cards for bad credit

In 2020, Petal came out with a new card that is geared toward people with a 550 credit score and higher, which is right on the cusp of bad and fair. This is the only card in this category that doesn’t charge an annual fee.

Our top picks for unsecured credit cards for bad credit

These cards offer some excellent perks considering they’re designed for people with no or poor credit.

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

Finder rating 4.5 / 5 ★★★★★

Apply now on WebBank, Member FDIC's secure site Terms apply, see rates & fees Read review

The Petal® 1 "No Annual Fee" Visa® Credit Card is Petal's newest card for credit-building. This card is designed so that those with a prior history of poor credit can apply and potentially qualify. While this card doesn't share the NO FEE structure of the Petal 2, it does carry no annual fee and requires no security deposit, making it a strong choice for rebuilding credit without taxing your bank account.

• Pros and cons

  Pros

  • No annual fee. You won't pay an annual fee to use this card.
  • High potential credit limit. Your minimum credit limit starts at $300 and goes as high as $5,000, which is greater than average for a credit-building card.
  • Reports to all three credit bureaus. Petal will report your credit activity to Equifax, Experian and TransUnion.

  Cons

  • High APR. The Petal 1's APR ranges from 22.24% to 31.74% variable.
  • Fees. Unlike the Petal 2, this card carries fees, including late payment fees.
  
  

• More details

  Annual fee	$0
  Purchase APR	22.24% to 31.74% variable
  Balance transfer APR	N/A
  Welcome Offer	N/A
  Rewards	Up to 10% cash back

Pros

• No annual fee. You won't pay an annual fee to use this card.
• High potential credit limit. Your minimum credit limit starts at $300 and goes as high as $5,000, which is greater than average for a credit-building card.
• Reports to all three credit bureaus. Petal will report your credit activity to Equifax, Experian and TransUnion.

Cons

• High APR. The Petal 1's APR ranges from 22.24% to 31.74% variable.
• Fees. Unlike the Petal 2, this card carries fees, including late payment fees.

• More details

  Annual fee	$0
  Purchase APR	22.24% to 31.74% variable
  Balance transfer APR	N/A
  Welcome Offer	N/A
  Rewards	Up to 10% cash back

Disclaimer

Petal credit cards are issued by WebBank, Member FDIC

Welcome Offer	n/a
Rewards	Up to 10% cash back
Annual Fee	$0
Minimum Credit Score	550

Apply now on WebBank, Member FDIC's secure site Terms apply, see rates & fees Read review

Credit One Bank® Platinum Visa® for Rebuilding Credit

Finder rating 3.5 / 5 ★★★★★

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The Credit One Bank® Platinum Visa® for Rebuilding Credit is a basic starter credit card that's aimed at helping those with bad credit recover. This card earns 1% cash back on all purchases and offers flexible payment due dates, helping you to consistently make payments on time.

• Pros and cons

  Pros

  • Prequalification. See if you prequalify for the card without hurting your credit score.
  • Cash back. You’ll earn 1% on gas, groceries, mobile phone service, Internet service and cable and satellite TV service purchases.
  • Free credit score access. Track your credit-building efforts with monthly access to your Experian credit score.
  • Potential credit line increase. Your account is automatically reviewed for a credit line increase at regular intervals determined by Credit One.

  Cons

  • Annual fee. The card comes with a variable annual fee of $0 to $99.
  • Authorized user card fee. Authorized user cards come with a $19 annual fee. Most credit cards don’t charge any fees for additional cards.
  • Grace period. Some accounts may receive a 24-day grace period, while others won’t. Not having a grace period means Credit One starts charging interest from the moment you made your purchase. This can add up if you can’t pay your full balance as soon as possible.
  • Low minimum credit line. Your credit line depends on multiple factors, but this card has a minimum credit line of $300.

• More details

  Annual fee	$0 to $99
  Purchase APR	25.49% variable
  Balance transfer APR	N/A
  Welcome Offer	N/A
  Rewards	Up to 1% cash back

Pros

• Prequalification. See if you prequalify for the card without hurting your credit score.
• Cash back. You’ll earn 1% on gas, groceries, mobile phone service, Internet service and cable and satellite TV service purchases.
• Free credit score access. Track your credit-building efforts with monthly access to your Experian credit score.
• Potential credit line increase. Your account is automatically reviewed for a credit line increase at regular intervals determined by Credit One.

Cons

• Annual fee. The card comes with a variable annual fee of $0 to $99.
• Authorized user card fee. Authorized user cards come with a $19 annual fee. Most credit cards don’t charge any fees for additional cards.
• Grace period. Some accounts may receive a 24-day grace period, while others won’t. Not having a grace period means Credit One starts charging interest from the moment you made your purchase. This can add up if you can’t pay your full balance as soon as possible.
• Low minimum credit line. Your credit line depends on multiple factors, but this card has a minimum credit line of $300.

• More details

  Annual fee	$0 to $99
  Purchase APR	25.49% variable
  Balance transfer APR	N/A
  Welcome Offer	N/A
  Rewards	Up to 1% cash back

Welcome Offer	n/a
Rewards	Up to 1% cash back
Annual Fee	$0 to $99

Read Review

Indigo® Mastercard® Credit Card

Finder rating 3.8 / 5 ★★★★★

Go to site on Genesis FS Card Services's secure site Read review

While the Indigo® Mastercard® Credit Card may carry a annual fee after the first year, the card does allow you to prequalify which can help avoid the credit ding of a hard pull on your score. Plus, depending on your credit score, Celtic Bank may waive the annual fee entirely. Just take care to make your payments on time: the Indigo Platinum sports a high penalty APR of and late fees of up to $40.

• Pros and cons

  Pros

  • Unsecured card. You don't need to make a secured deposit to start building your credit.
  • Prequalification. Request prequalification to see your chances of approval without a hard pull on your credit.
  • No cash-advance fees.> For the first year, you get to save money on cash-advance fees. But after that a fee of either $5 or 5% of the transaction, whichever is greater, applies.

  Cons

  • You may pay an annual fee. Depending on your creditworthiness, you could pay , $59 or $75 for the first year and thereafter.
  • Foreign transaction fees. Purchases made abroad or online with foreign merchants will cost you a 1% fee of the amount.

• More details

  Annual fee	$0 to $99
  Purchase APR	24.9% variable
  Balance transfer APR	N/A
  Welcome Offer	N/A
  Rewards	None

Pros

• Unsecured card. You don't need to make a secured deposit to start building your credit.
• Prequalification. Request prequalification to see your chances of approval without a hard pull on your credit.
• No cash-advance fees.> For the first year, you get to save money on cash-advance fees. But after that a fee of either $5 or 5% of the transaction, whichever is greater, applies.

Cons

• You may pay an annual fee. Depending on your creditworthiness, you could pay , $59 or $75 for the first year and thereafter.
• Foreign transaction fees. Purchases made abroad or online with foreign merchants will cost you a 1% fee of the amount.

• More details

  Annual fee	$0 to $99
  Purchase APR	24.9% variable
  Balance transfer APR	N/A
  Welcome Offer	N/A
  Rewards	None

Welcome Offer	n/a
Rewards	None
Annual Fee	$0 to $99
Minimum Credit Score	510

Go to site on Genesis FS Card Services's secure site Read review

Compare unsecured credit cards for bad credit

Check out the options for building your credit with an unsecured credit card.

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Name	Product	Filter values	Rewards	Purchase APR	Annual fee
Indigo® Mastercard® Credit Card			N/A	24.9% variable	$0 to $99	Go to site View details	The Indigo® Mastercard® Credit Card is specifically designed for those with less than perfect credit.	Compare	loading Fetching your data...
Tomo Credit Card			N/A	N/A	$0	Apply now View details	A credit-building card with no fees, no APR, and no credit check.	Compare	loading Fetching your data...
Surge Mastercard® Credit Card			N/A	24.99% to 29.99% variable	$75 to $99	Apply now View details	An unsecured credit-building card with a $0 fee on cash advances for the first 12 months, then 5% or $5. This is a rare offer among similar cards.	Compare	loading Fetching your data...

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What if you’re not approved?

If you’re rejected for an unsecured credit card, you’ll want to do the following:

• Call the credit card company’s reconsideration line. This number is usually printed on the rejection letter the bank sends you 7 to 10 days after it makes its lending decision. Ask the customer service representative why you were denied and if you can work with them to reconsider the bank’s decision.
• Consider applying for a secured credit card. Secured credit cards require a cash deposit upfront that acts as the credit line for the card. While these tend to have smaller credit limits or unfavorable fees, lenders are more likely to approve someone with bad credit for a secured card because they can apply the collateral to the card’s balance if you miss a payment. Secured credit cards act similarly to an unsecured card on your credit report, as long as the lender reports to all three credit bureaus, so make sure to keep up on your payments. Keep in mind that late payments will still hurt your score even if your cash collateral is used to cover a missed payment. Check out our guide to secured credit cards for more information.
• Don’t reapply too quickly. When you apply for a credit card and are rejected, this can show up on your credit report as a hard pull, which can put a small dent into your credit score. Wait a few months to apply for another card to avoid a large credit score drop.
• Work on paying off your existing debts. Anything you can do to bolster your credit score while you wait to reapply will improve your chances of approval. You have quite a few ways to build credit without a credit card, so make a plan and stick to it.

Further improving your credit

If you’re approved for an unsecured or secured credit card, you’re already on track to improving your credit score. Make sure to manage your credit card properly by making regular, on-time payments. Keep your balances low and make sure to pay off any accounts in collections. Check out our guide to improving your credit score for more information.

It’s also a good idea to keep an eye on your credit score. Most credit card issuers give you free access to your FICO score. If you don’t yet have a credit card, free credit monitoring software like Credit Sesame will give you free access to your credit score and history.

Many providers will check your credit, and you could be declined if your score is too low. If you’re denied, try applying for a different credit card with a provider that doesn’t look at your credit history.

Bottom line

Even if you have bad credit, you can still find unsecured credit cards out there that may be a good fit for your financial situation. While these credit cards typically don’t offer high credit lines or many perks, using them responsibly and paying off your balance each month will help you qualify for better credit cards.

If you’re still having a hard time getting approved for one of these unsecured credit cards, you might want to look at our top picks for secured credit cards. Once you’ve had the card for at least a year and have proven you’re capable of making on-time repayments each month, you may be able to upgrade to the unsecured version of the card. If not, try check out other credit cards for bad credit and try your luck again.