Best credit cards for bad credit no deposit required
If you need a credit card and have less than perfect credit, you may be considering the unsecured credit card offers that you have seen in the past. You may also be thinking: are these credit cards legitimate and even if they are, what does it really mean? Credit cards seem to be a perfect solution for your financial needs, but it is also important to note that credit card companies will require you to meet certain requirements before issuing the card. First, most credit card issuers will need applicants to have an active checking account and there are also minimum income requirements. Even before applying for the card, you may also be wondering if a bad credit score can hinder you from getting one. Applicants with credit scores of between 300 and 650 may be considered as risky borrowers. Luckily, there are also credit cards for bad no deposit that you can consider applying for;
Getting the best credit cards for bad credit
There are 2 main types of credit cards; secured and unsecured. With secured credit cards, you are required to give a security deposit to be approved. The amount you give as deposit becomes your credit line limit. But with unsecured credit cards, there are no security deposit requirements.
If you have poor credit, getting a new credit card may not be a walk in the park for you. This is because credit card issuers like Capital One, Chase Discover and American Express, which are the top players in the industry, do not issue unsecured credit cards to consumers will poor credit history. The only option for you is to look for credit card issuers who specifically offer the cards to those who need to improve their credit. These companies, usually referred to as subprime issuers can easily approve your credit card despite your credit score and once applied, you can receive application feedback in as soon as 60 seconds.
Unsecured credit cards for bad credit
An unsecured credit card is a true line of credit from a credit card company and requires no security deposit. The main disadvantage of unsecured credit cards for bad credit is that they have higher fee charges and the APR can also be high. But if you use the cards responsibly, they can help improve your credit score after which you can qualify for secured credit cards that offer more affordable rates and fees. Here are the best unsecured credit cards for bad credit that you can consider;
- Credit One Bank: Unsecured credit cards for bad credit
Credit One Bank, which has its headquarters in Las Vegas, has more than 7 million customers in the United States. The bank is also known to offer subprime cards to individuals with less than perfect credit. The bank reports consumers information to the three major bureaus, and this can help improve your credit. Besides, consumers are provided with their credit scores on a monthly basis. Credit One Bank credit cards also have a unique feature which is rarely found in the subprime card market. These are the cash back rewards. Consumers earn 1% cash back on every purchase made using the credit card.
- Credit One Bank® Platinum Visa® for Building Credit
When applying for the card, a soft pull is done which will not have an impact on your credit score. Consumers can also track their credit progress by accessing a free Experian credit score.Besides, consumer information is reported to credit bureaus on a monthly basis to help improve your credit. Other benefits of the card include:
- Consumers can choose their payment dates
- You will receive 1% cash back on every purchase made
- Offers 0 fraud liability
The card attracts interest rates of between 19.75% and 25.74%. The cash back programs that consumers are enrolled depends on different factors like individual creditworthiness and the card you are applying for. Depending on these qualifications, the rewards may only apply to certain category of purchases or all purchases you make using Credit One card. Your credit card choice will also determine the interest rate, annual fee and credit limit.
- Fingerhut: Unsecured Credit Card for Poor Credit
The company has been in operation for more than 60 years and is currently offering a variety of products. Just like other cards, Fingerhut credit account can help boost your credit while you get access to thousands of consumer products. Besides, you won’t have to pay an application fee when applying for the card. There are no annual fee charges either. The application process takes only 5 minutes and consumer credit information is reported to the credit bureaus on a monthly basis. However, the credit account only allows consumers to make purchases through Fingerhut. Like all the other credit cards, interest is charged on monthly balances. To avoid high interest charges, it is important to pay off your full balances before the end of every billing cycle.
Other issuers for unsecured cards
The above companies are not the only subprime credit card providers in the United States. If you are looking for an unsecured credit card for bad credit, it is important that you first compare all the options available. This will help you get the best offers in terms of interest rates. All these cards also report to the three major credit bureaus, which mean that when the cards are used correctly, your credit score will improve. The cards also have an easy application process response and offers free online access to your account, making it easier and convenient to apply and use the card.
- Total VISA® Credit Card
Total Visa card is accepted by both online and in-store merchants throughout the country. The card has an easy application process and applicants can receive a response within a few seconds. Once you open your account, you will be charged a processing fee of $89. The card also has manageable monthly payments. The company reports monthly to the three major credit bureaus. Total Visa credit card has an APR of 29.99% on purchases.
- First Access Solid Black VISA Credit Card
First, you don’t need to have a good credit score to qualify for the card. Your credit line can also increase after 6 hours and the card has an easy and secure application process. These are some of the benefits of First Access Solid Black VISA credit card. Once approved, you will be required to pay a processing fee. Your information is also reported to the credit reporting agencies on a monthly basis, which also helps improve your credit. You only need to open an account and access credit line of up to $300. Other features of the card include:
- You can select your favorite card design for free
- Online customer service is available 24/7
- Surge Mastercard®
Both good and bad credit borrowers can apply for the Surge MasterCard®. The card has an easy and straightforward application process and monthly reports are sent to the major credit bureaus. Besides, the card is accepted at every location. Depending on your credit score, you can apply for a secured, partially secured or unsecured credit card. Surge® Mastercard has an annual fee of $125 for the first year and the free drops to $96 thereafter. It also has a foreign transaction fee of 3% of the transaction value and an APR of 29.99% variable on purchases.
- Milestone® MasterCard® with Free Choice of Card Image
The card has a fast and easy application process, and you can receive the application response within a few minutes. People with less than perfect credit are welcome to apply. Consumers are also able to access their account online 27/7. Your account history is reported to the three major bureaus and responsible use can boost your credit. The card has an interest rate of 23.90%, which is a fair rate for people with poor credit. Depending on your creditworthiness, you will be charged an annual fee ranging from $35-$99. You are also allowed to choose a custom card design for free.When applying for any of the credit cards for bad credit, it is advisable to watch out for the processing fees and annual fees. The fees are usually charged to the consumer’s account as soon as they open it, and they can reduce your available credit. To qualify for an unsecured credit card, you also need to have an active checking account. Additionally, you should have a regular source of income which varies depending on the card and the issuing company.
How to qualify for an bad credit unsecured credit card
Unsecured credit cards can be a good option for consumers with poor credit rating. This is because they have no security deposit requirements and you can also earn rewards. While you can still be approved if you have low FICO score, you should note that credit cards for bad credit do not have many rewards. The main features of these cards include small credit card limit, and annual fee charges. However, most of the card issuers report your information to the three major credit reporting agencies Equifax Experian and TransUnion, and this can help improve your credit.
How credit cards can help rebuild your credit
If you already have poor credit, getting back on foot may seem to be a challenge task, and especially if you cannot afford the high interest rates and fees that are charged to poor credit borrowers when applying for a loan or credit card. Fortunately, here are some few guidelines that you can follow for the process of rebuilding your credit using credit cards to be much easier.
- First, you need to ensure that the card you are applying for reports consumer credit information to the three major credit reporting bureaus on a monthly basis. If so, the bills you pay every month will have a positive impact on your credit score.
- Secondly, you also have to ensure that your balances are below their credit limits. To be on the safe side, your credit card utilization ratio should not be more than 30%. If for instance your credit card limit is $500, try not to exceed a balance of $150 in one billing cycle.
- he last and most important point is to ensure that your bills are paid before the due date. Remember that just one late payment can greatly affect your credit score. Besides, having late fees piled up on top of your rates of interest can also be frustrating. If you pay bills on time each month, you may also qualify for higher credit limits and more rewards. Having the tendency of paying bills on time is among the best ways to ensure that your credit score improves.
How to make credit cards work for you
If you do not have a good credit rating, it may be almost impossible to be approved for 0% APR balance transfer or a rewards credit card. For credit cards to work well for you, you need to make payments on time which will help improve your score and increase your credit limit. Once you prove to the credit bureaus that you are a trustworthy borrower, you may qualify for more affordable financing options. Actually, the best way to ensure that credit cards work for you if you have bad credit is by using them to boost your credit, and this will also improve your overall financial health.
Unsecured credit cards do not require an initial deposit or any other form of collateral to receive a line of credit. The cards are approved based on other factors like the consumer’s credit history. People with bad credit may have a hard time finding the best credit card deals. This is because lenders consider them as high-risk borrowers. However, having poor credit does not mean that it is already impossible to get a credit card. You only need to use the credit card correctly, which will in turn help improve your credit score for you to qualify for better deals in future. But as much as you can still get an unsecured credit card with no deposit requirements, it will also come at a cost. Most of them charge an annual and processing fee to open an account, and these fees can be costly. The best way to avoid the high rates is to improve your credit rating. Before applying, it is also important to go through the terms and conditions of the card since this will help you avoid any hidden fee charges.