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Key takeaways
- Find the best cards with no security deposit. Look for cards that align with your goals and consider factors like fees, interest rates, and benefits.
- Cards with no deposit for low scores tend to have lower credit limits and higher fees. These reflect the increased risk lenders are taking.
- Use your card responsibly by making timely payments and keeping balances low. Responsible use can lead to score improvement over time.
Credit cards with no deposit can help you access credit and improve your score when you don’t have the cash for a security deposit.
If you have a low score and don’t want a secured card, your best bet is to get a second-chance card. These cards are designed for people with poor or no credit history to help you improve your score.
Let’s explore the best credit cards with no security deposit for poor scores and see if there’s one for you.
Jump to:
- Easy approval unsecured cards
- Types of unsecured credit cards
- What credit limit and interest rate can you expect?
- Can you get an unsecured credit card after bankruptcy?
- How to use my card to rebuild credit?
- How to make the most of second-chance cards with no security deposit?
- Can a secured credit card become unsecured?
- Frequently Asked Questions
- Bottom Line
Easy approval unsecured cards
Milestone® Mastercard®
Milestone® Mastercard® is a reasonable option for consumers looking to boost their scores and who don’t want to tie up money in a refundable security deposit. The card is easy to qualify for and comes with all the benefits of a Mastercard®.
The Milestone® Mastercard® is an accessible card. It’s a place to start for anyone looking to improve their score. It does not require a security deposit, is easy to qualify for, and reports to Experian, TransUnion, and Equifax.
Destiny Mastercard®
Destiny Mastercard® is a straightforward card that provides consumers with the opportunity to boost their scores, gives them the advantage of a $700 limit, and is easy to be approved for.
The Destiny Mastercard is an easy approval card even if you’ve had a past bankruptcy. You get a $700 limit, reporting to all three bureaus, and do not have to put down a security deposit.
Prequalify before your apply without hurting your score.
Fortiva® Mastercard®
Fortiva® Mastercard® stands out from the crowd as an option for beginners or those with low scores. It offers a higher limit, cash back rewards of up to 3%, and accepts all scores. The application process is easy and you can prequalify before you apply.
The Fortiva Mastercard lets you prequalify for an initial limit of up to $1,000 – without hurting your score. Limits increase up to $2,000 and you get cash back rewards up to 3% on select purchases.
You don’t need good score to apply for this rewards card but you do need to pay your balances in full each month to avoid interest charges.
Aspire Mastercard®
Aspire Mastercard® is a good option for people starting out. It’s easy to be approved for, gives you a higher limit, and you can earn cash back rewards on all purchases.
Aspire Mastercard® is available to applicants with fair to excellent scores. Get lucrative cash back rewards and a high limit with this card.
Aspire lets you see your score for free once a month. It does come with hefty fees and a high APR that can be avoided with on time payments.
Surge® Platinum Mastercard®
Surge® Platinum Mastercard® is a strong option for people starting to build or rebuild their scores. It’s easy to get, provides a high initial limit, and the chance to double it after six months of responsible use.
The Surge Mastercard offers instant approval and the possibility of a $1,000 limit! Pay your bills on time for six months and it’ll double to $2,000.
This card lets you see your Vantage Score 3.0 for free, waives the monthly maintenance fee the first year, and reports monthly to Experian, Equifax, and TransUnion.
FIT® Platinum Mastercard®
FIT® Platinum Mastercard® stands out as an option for beginners or those with low scores as it offers something unique in its class; a chance to double your initial limit to $800 in only six months.
Get an instant decision with Fit Mastercard®. Use it anywhere Mastercard is accepted worldwide. Pay your bills on time for six months straight and Fit will reward you by doubling your limit.
The APR is high, but not as high as other cards in this category.
Reflex® Platinum Mastercard®
Reflex® Platinum Mastercard® is a rare traditional card for consumers with low scores. It is easy to qualify for, has a high initial limit, and is an excellent place to start rebuilding your score.
The Reflex Mastercard reports Experian, Equifax, and TransUnion, gives you a free Vantage Score 3.0 each month, and doubles your limit after only six months of on time payments.
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Reflex is easy to apply for and has fast approval but does come with high fees and a high APR.
Find even more credit cards for low scores on MoneyFor.
Types of unsecured credit cards
A traditional credit card is unsecured, meaning it does not require a security deposit. There are a variety of types of cards including cash back, travel rewards, and balance transfer cards. Most rewards cards are aimed at people with good credit but a few including Fortiva Mastercard and Aspire Mastercard accept applicants with low scores.
Some are even no credit check credit cards with no deposit.
There are unsecured cards designed specifically for improving your score. These cards usually have lenient requirements but higher interest rates and fees. Take a look at the offers above, there’s likely an unsecured credit card with no deposit that fits your needs.
What credit limit and interest rate can you expect?
When considering credit cards for low credit with no deposit, it’s important to set realistic expectations regarding limits and interest rates. Limits on these cards tend to be relatively low starting between $200 and $1,000. Interest rates tend to be on the higher side. Expect to find APRs (Annual Percentage Rates) starting at 24.99%, which is well above national average.
The low limits and high APRs reflect the increased risk that card issuers take on by accepting applicants with low scores without a deposit.
Can you get an unsecured credit card after bankruptcy?
Obtaining a card after bankruptcy be challenging, but it’s not impossible. Secured cards are easier to be approved for but a number of card issuers will consider applicants who have a past bankruptcy filing on their report.
Your options will be limited and you will likely face higher fees and a higher APR. With responsible use, you can improve your score and get more favorable terms in the future.
How to use my card to rebuild credit?
Rebuilding your score takes time but it’s not that difficult. What you have to do is consistently show responsible financial behavior. That means paying bills on time and not spending too much. Credit cards for rebuilding credit with no deposit can help you if you follow these rules:
- Make payments on time
- Reduce your debt
- Keep your balance below 30%
- Don’t close old accounts
- Apply sparingly
- Have both loans and cards
It can feel like a lot when you’re just starting out. Let’s go over each of the points in detail.
Pay Bills on Time
The single most important factor in calculating your score is payment history. Always pay your bills on time. Even one late payment can set you back.
Pay Down Debt
Work towards reducing your overall debt. Aim to pay more than the minimum due each month. Lowering your debt not only improves your credit utilization ratio but also saves you money on interest.
Maintain a Low Balance
Strive to keep your balances low. A good rule of thumb is to use less than 30% of your available credit. This demonstrates to lenders that you can handle money responsibly.
Keep Old Accounts Open
The length of your credit history impacts your score. Keep old accounts open and active to improve your average account age.
Don’t Apply Too Often
Each application results in a hard inquiry, causing your score to dip temporarily. Apply only as needed to avoid unnecessary hits to your score.
Have a Mix of Credit
A diverse mix of accounts, including loans and cards, can positively affect your score. This variety shows that you can handle different types of loans responsibly. It’s a small factor though, so don’t go applying for anything you don’t need.
You can improve your score just by paying monthly bills!
How to make the most of second-chance cards with no security deposit?
Take advantage of the opportunity and use unsecured cards to practice good financial habits and build up your score as soon as possible. First, establish a positive payment history.
- Set up automatic payments each month
- Request alerts when your bill is due
- Only use your card for small manageable purchases you can pay off each month
- Consider paying your entire balance to avoid interest charges
Whatever you do, avoid maxing out your card each month. Credit utilization – how much of your limit you use – is an important factor. If you find yourself using more than 30% of your limit, make multiple payments throughout the month to keep your utilization low.
Credit cards for damaged credit with no deposit offer a chance to improve your score. Take advantage of them and get your score up so you can graduate to cards with more rewards.
Can a secured credit card become unsecured?
A secured card is a good way to boost your score, but you are limited by your security deposit. Luckily, a lot of secured cards do let you graduate to an unsecured card, but not all. It depends on the card issuer’s policies and your financial habits.
To upgrade to a traditional card you much show you can responsibly pay back loans, maintain a positive relationship with the issuer, and improve your score. If you feel that you’re ready then inquire about an upgrade.
Frequently Asked Questions
Bottom Line
If you need an unsecured card and you have a bad score, you are not out of luck. There are plenty of card issuers who have designed cards just for you. Concentrate on feasible choices, prequalify before you apply, and always read terms before you sign.
Once you have your card, use it responsibly and build your score so you can move up to a card offering higher rewards and lower fees.
For those ready to take the first step, applying for a credit card for bad credit with no deposit could be the gateway to a brighter financial future.
