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Key takeaways
- The best second chance credit cards with no deposit offer individuals with poor scores an opportunity to rebuild.
- Although second chance cards waive the deposit requirement, they often compensate by charging higher interest rates and additional fees. It’s important to review the fee structure.
- Use your new card to improve your score. Make timely payments, keep low balances, and monitor your score to watch your progress.
No denial credit cards allow you to access credit no matter your score. Credit cards are an incredibly convenient way to pay for items in this modern life. Unfortunately, getting approved isn’t always easy. A lot of issuers have a high minimum credit score requirement that not everyone can meet. And not everyone has enough cash for a secured credit card.
That’s where second chance credit cards for bad credit with no deposit come in. These cards were created for consumers with poor scores. They can give you access to the credit you need and help you improve your score so you can get a better card next time around.
Here are our top picks for second chance credit cards.
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Find the best credit cards for 2024
No matter your score, you can find a card. You may even qualify for an unsecured card. Many issuers are reluctant to approve applicants with a FICO score below 670, but we have found a few that accept applicants with lower scores.
Second chance credit cards with guaranteed approval don’t exist – there’s no such thing as 100% guaranteed approval – but we’ve found three unsecured cards with very lenient requirements.
Fortiva® Mastercard® Credit Card
The Fortiva® Mastercard® is an ideal choice for beginners or those with fair scores. It provides a substantial initial limit of up to $1,000 and cash back rewards on every purchase. This card is a great tool for those looking to improve their score while earning rewards.
The Fortiva® Mastercard® is tailored for individuals with less-than-perfect ratings who are working on rebuilding their financial standing. It does not require a security deposit, making it accessible for many. It also is a rare subprime card that provides cash back rewards up to 3%.
This card offers an easy online application process and fast response times. You can also prequalify before you apply without hurting your rating.
While it might come with high fees and interest rates, timely payments are reported to the major credit bureaus, gradually aiding in score improvement. Additionally, the Fortiva® Mastercard® provides free access to your score, allowing you to monitor your progress.
Aspire® Cash Back Reward Card
The Aspire Mastercard® is an excellent choice for those with low scores. It offers a generous initial limit and allows cardholders to earn cash back rewards on every purchase. It is a beneficial tool for new users looking to establish a positive credit history while enjoying the perks of cash rewards.
The Aspire® Cash Back Reward Card is a great option for those seeking to improve their scores while earning rewards. This card offers a competitive 1% cash back on all purchases, which can be an excellent incentive for regular use.
Importantly, it also features automatic reviews for limit increases, which can enhance your utilization ratio—a key factor in your score calculation.
Although the Aspire® card may come with a higher APR and annual fees, these costs are balanced by the benefits of raising your rating and earning rewards. It reports to all three major credit bureaus, ensuring that your on-time payments positively impact your score.
FIT® Platinum Mastercard®
The FIT® Platinum Mastercard® is an excellent choice for beginners or those with lower scores. It offers a unique feature in its category: the opportunity to double the initial limit to $800 within just six months.
The FIT® Platinum Mastercard® offers an initial modest limit which can double after six months of on-time payments. This feature is particularly beneficial for those seeking to improve their score quickly.
While FIT does come with fees including a setup fee and annual fee, its credit-building potential makes it a viable option for those with poor ratings. Like other second chance cards, it reports to the major credit bureaus, ensuring that your payment history and usage can positively affects your credit report.
Bad credit rating
A bad rating is anything below 670 on the FICO scoring model. These scores are considered subprime. Any FICO score below 580 is classified as deep subprime. If your FICO score falls in this range it will be difficult to be approved for a card, but not impossible. The unsecured credit cards we mentioned above all are targeted at consumers with bad ratings.
Do you have a bad credit rating but need a card?
We have even more options for you! Click here for cards for an under 500 score.
No annual fee credit cards
Unsecured cards are more appealing since they don’t require an upfront security deposit. The catch is most of these cards for consumers with poor scores come with high interest rates and lots of fees including a monthly maintenance fee and annual fee.
Secured credit cards, on the other hand, tend to have fewer fees and the deposit is fully refundable. Secured cards are a good no-denial option. You can use them to raise your rating and save money on fees. Once you’ve reached a higher score you can either upgrade to an unsecured card or close your account and apply for an unsecured card with better benefits.
The secured cards we’ve chosen have no annual fee, no interest charges, no credit check, and most importantly, no minimum security deposit.
Current Build Card
Current’s Build Card offers a distinctive route for individuals with low scores to improve them. It does not require a security deposit or a hard inquiry, making it very accessible. However, applicants must have a Current Spend Account to be eligible.
The Current Build Card is designed to assist people in establishing or improving their scores. The card does not require a deposit. Instead, you have to have a Current Spend account to qualify. This means that you don’t have to set money aside to use the account. And it makes it harder to go into debt since you can only spend money you actually have.
New
Possibly best of all, you can set up AutoPay so that you never miss a bill. Pay your bills on time every month and this card can help your score go up.
Chime Secured Credit Builder Visa®
The Chime Secured Credit Builder Visa® stands out as an exceptional option. It has no hard inquiry, no minimum security deposit, no annual fee and no interest charges. If these features resonate with you, this card is certainly worth considering.
Chime’s Secured Credit Builder Visa® does not require a credit check or a minimum security deposit, setting it apart from traditional secured cards. This card is aimed at simplifying the credit-building process. It charges no annual fee or interest; instead, your spending limit is determined by the amount you transfer to the card from your Chime Spending Account.
The Chime also reports to all three major credit bureaus, allowing your positive payment history to boost your score, making it an innovative tool for financial improvement. Enable their Safer Credit Building feature to never miss a payment – or remember to pay your bills on time every month but be aware of human error.
How to apply for a credit card
Applying for a new card is a straightforward process, but doing it correctly can increase your chances of approval and ensure you get the best one for your needs. Here’s a step-by-step guide to walk you through the application process:
- Check Your Score: Before you apply, know your score. This will help you determine which cards you’re likely eligible for. You can obtain your score from each credit bureau or through AnnualCreditReport.com.
- Research Your Options: Look for a card that matches your score and offers benefits that align with your spending habits, such as rewards programs, low interest rates, or no annual fees.
- Read the Fine Print: Understand all the terms and conditions associated with a card, including fees, interest rates, rewards, and penalties. This can help you avoid unexpected charges.
- Gather Necessary Information: When you’re ready to apply, make sure you have all the required information handy, such as your Social Security number, income, and employment details.
- Try to Prequalify: A lot of credit card issuers let you prequalify. Prequalifying does not guarantee approval but it does let you see your chances without hurting your score. Prequalify for a few cards and then apply for the best offer you receive.
- Apply Online or In Person: Most applications can be completed online, which is convenient and usually results in a quick decision. Alternatively, you can apply in person at the financial institution.
- Wait for Approval: After submitting your application, there may be a processing period. Some applications might result in instant approval, while others might take a few days or weeks. During this time, avoid applying for other cards, as multiple inquiries can hurt your score.
- Understand Your Limit and Terms: Once approved, you will be informed about your limit and other relevant terms. Review this information carefully to understand your obligations and the benefits you receive.
- Activate Your Card: Upon receiving your card, you will need to activate it before use. This is usually done through a phone call or online.
- Set Up Online Management: Register for online access to your account to manage your card, view transactions, pay your bill, and more. Many issuers also offer mobile apps for convenient management on the go.
- Start Using Your Card Responsibly: Begin using your card for purchases and remember to pay your balance in full each month to avoid interest charges and build your score.
By following these steps, you can apply for a card smoothly and ensure you’re making the most of your new financial tool.
Want a new credit card and tired of being denied?
Click here for tips on how to get your application approved!
Annual fee
A lot of cards come with annual fees. These are very popular in unsecured cards for poor scores and ones for excellent scores that offer lucrative rewards. Always make sure that you can afford the annual fee. A lot of times it’s cheaper to get a secured card with no annual fee since your deposit is fully refundable and fees are not.
What are the best second chance credit card companies?
Second chance credit cards are designed for individuals looking to recover from past financial mistakes. These cards are essential tools for rebuilding credit. They typically offer more lenient approval criteria and are provided by companies that understand that everyone makes mistakes.
Here are some of the top companies offering these types of cards:
- Fortiva® Mastercard® – Earn cash back rewards on all purchases
- FIT® Platinum Mastercard® – double your limit with 6 months of responsible use
- Aspire Mastercard® – Get automatic limit increases and cash back up to 3%
- Indigo® Platinum Mastercard® – Prequalify with no impact on your score
These companies are committed to providing financial products that help individuals rebuild their scores and improve their financial health. Each offers unique features and benefits tailored to meet the needs of consumers working to overcome previous challenges.
Can you get an unsecured credit card after bankruptcy?
Yes, but you will likely have to wait until the bankruptcy is discharged. If your bankruptcy is too recent it will make it very difficult to qualify for any unsecured card. Your best bet is to get a secured card and use it to improve your score.
How long does it take to rebuild credit with a credit card?
How long it takes to rebuild your score with a card depends both on where your score is and how you use your card. It can take as little as a few months or up to a year to raise your score to the good level – above 670 on the FICO scoring model.
The practices you need to watch out for are:
- Payment history
- Usage
- How long you’ve had accounts
- Your credit mix
- New inquiries
First and foremost you need to pay all your bills on time. A positive payment history is the best thing you can do for your score. Set up automatic payments, request alerts for when bills are do. Report ALL your monthly bills using StellarFi.
Next, avoid maxing out your card each month. You want to keep your utilization rate below 30% of your limit. Make multiple payments throughout the month to keep your utilization low.
The other three factors are less important but don’t forget them. Keep old accounts open as this will increase the length of your credit history. Your credit mix refers to the types of accounts you have loans and cards. But don’t go applying for cards or loans you don’t need. That brings us to the last one – new inquiries. Every time you submit an application, you will undergo a hard inquiry which will temporarily lower your score. So apply sparingly.
Learn more on MoneyFor!
Bottom Line
There are plenty of second chance card options for people looking to raise their rating. Financial institutions understand that just because you’ve made mistakes in the past doesn’t mean you’ll repeat them. No matter your past, you’ll be able to find a card.
Lots will require a deposit – but not every one. Find a card and use it to improve your score. Pay your bills on time, keep your utilization low, and only apply for new accounts when you need to Follow these basic rules and you will see your rating rise.
