If you have poor credit, you won’t be eligible for the most rewarding credit cards. Secured credit cards can help you get your credit back on track, but require a deposit to open. However, several easy-to-get credit cards can help you rebuild your credit without an upfront deposit, even if you have bad credit.
When comparing unsecured credit cards for bad credit, it’s important to pay close attention to the fees. This type of card can have an annual fee, a monthly fee and sometimes even a fee to open the card.
CNBC Select analyzed unsecured credit cards available to those with bad credit to determine the best options with reasonable fees. (See our methodology for more information on how we chose these cards.)
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Best for rewards
Credit One Bank® Platinum Visa® for Rebuilding Credit
Information about the Credit One Bank® Platinum Visa® for Rebuilding Credit has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
Rewards
1% cash back rewards on eligible gas, groceries, mobile phone, internet, cable and satellite TV services.
Welcome bonus
Annual fee
$75 first year, then $99 annually
(billed at $8.25 per month)Intro APR
Regular APR
Balance transfer fee
Foreign transaction fee
$1 or 3%, whichever is greater
Credit needed
Pros
- Regular reviews for credit line increases
- Cash back for common expenses
Cons
- Annual fee
- No welcome bonus
Best for no credit
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
Rewards
1% cash back on eligible purchases right away and up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments; 2% to 10% cash back at select merchants
Welcome bonus
Annual fee
Intro APR
Regular APR
Balance transfer fee
Foreign transaction fee
Credit needed
Pros
- No credit history required (if you do have a credit history, that does factor into the credit decision)
- No fees whatsoever
- 1% cash back on eligible purchases right away and up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments; 2% to 10% cash back at select merchants
- Credit limits range from $300 to $10,000
Cons
- Card isn’t for rebuilding credit, but it’s good for building credit
- No special financing offers
- No welcome bonus
- Estimated rewards earned after 1 year: $249
- Estimated rewards earned after 5 years: $1,577
Best for low annual fee
Prosper® Card
Information about the Prosper® Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
Rewards
Welcome bonus
Annual fee
$39 (waived for the first year if you sign up for autopay before your first statement)
Intro APR
Regular APR
23.74% to 35.24% based on creditworthiness
Balance transfer fee
Foreign transaction fee
1% of the transaction amount
Credit needed
Pros
- Low annual fee
- No security deposit required
Cons
- No rewards or intro bonus
Who’s this for? The Prosper® Card is ideal if you don’t want to pay a high annual fee. It has a reasonable annual fee that can be waived the first year and a potentially higher credit limit than comparable unsecured credit cards.
Standout benefits: If you enroll in autopay before your first statement is due, you can waive this card’s $39 annual fee for the first year.
More rewarding secured credit cards to consider
It’s difficult to find affordable unsecured credit cards if you have bad credit. If you can manage the upfront refundable security deposit, there are secured credit cards that give you the same opportunity to work on your credit and can be more rewarding.
If you want to earn a welcome bonus: Discover it® Secured Credit Card
Discover it® Secured Credit Card
On Discover’s secure site
Rewards
Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.
Welcome bonus
Discover will match all the cash back you’ve earned at the end of your first year
Annual fee
Intro APR
Regular APR
Balance transfer fee
3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
Foreign transaction fee
Credit needed
The Discover it® Secured Credit Card has no annual fee, no foreign transaction fees and only requires a security deposit starting at $200 to open. You’ll earn 2% cash back on up to $1,000 in combined purchases each quarter at gas stations and restaurants, then 1% cash back. All other purchases earn 1% cash back. Plus, Discover will match all the cash back you earn in the first year.
At seven months from account opening, Discover will automatically review your credit card account to see if it can transition you to an unsecured line of credit and return your deposit.
Learn more: Discover it® Secured Credit Card
If you want to maximize your cash-back: U.S. Bank Cash+® Visa® Secured Card
U.S. Bank Cash+® Visa® Secured Card
Information about the U.S. Bank Cash+® Visa® Secured Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
Rewards
5% cash back on your first $2,000 in combined eligible purchases each quarter in two categories you choose, 5% cash back On prepaid air, hotel and car reservations booked directly in the Rewards Travel Center, 2% cash back on eligible purchases in your choice of one everyday category (like gas stations, grocery stores and restaurants) and 1% cash back on all other eligible purchases
Welcome bonus
Annual fee
Intro APR
Regular APR
Balance transfer fee
Either 3% of the amount of each transfer or $5 minimum, whichever is greater.
Foreign transaction fees
Credit needed
The U.S. Bank Cash+® Visa® Secured Card has a minimum opening deposit of $300, but you won’t pay any annual fee and it has a slew of generous cash-back categories. You’ll get 5% cash back on the first $2,000 in combined purchases in two categories you choose each quarter, 2% cash back in one everyday category you choose and 1% cash back on all other purchases. Plus, prepaid hotels, rental cars and airfare you book through the Rewards Travel Center earn 5% cash back.
Learn more: U.S. Bank Cash+® Visa® Secured Card
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More on our best unsecured credit cards for bad credit
Credit One Bank® Platinum Visa® for Rebuilding Credit
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card has no annual fee, no late payment fee and no foreign transaction fees.
Rewards
- 1% cash back on eligible purchases right away, which can increase up to 1.5% cash back after you make 12 on-time monthly payments
- 2% to 10% cash back at select merchants
Welcome bonus
None
Annual fee
$0
Notable perks
The Petal 2 card rewards you for making on-time payments, which makes it a good option for building your credit history. When you open an account, you’ll start off earning 1% cash back, after making six on-time monthly payments, that rate increases to 1.25% cash back. After making 12 on-time monthly payments, you’ll start earning the full 1.5% cash back. On top of its everyday cash back, you can earn additional rewards of 2% to 10% back at select merchants.
Prosper® Card
The Prosper® Card doesn’t have rewards but is an affordable option for rebuilding credit without a security deposit.
Rewards
None
Welcome bonus
None
Annual fee
$39, waived the first year if you enable autopay on your first statement
Notable perks
The Prosper Card offers a credit limit of $500 to $3,000, as well as automatic reviews for credit line increases. You may even be able to instant access up to 50% of your credit limit with your digital card before a physical card arrives in the mail.
Check out CNBC Select’s easiest credit cards to get
What is an unsecured credit card?
You aren’t required to make an upfront security deposit with an unsecured credit card. Instead of basing your credit limit on a refundable deposit, unsecured credit cards use your credit history, income and other financial information to determine how much credit you’re eligible for.
Most credit cards are unsecured, including the most rewarding travel credit cards, and business credit cards. Just like with secured credit cards, you can boost your credit score with an unsecured credit card if you consistently pay your monthly bill on time and in full. If you don’t pay your credit card balance in full, you will be charged interest on any remaining balance.
Pros and cons of unsecured credit cards
The most common, and most rewarding, credit cards are unsecured credit cards. Everything from store credit cards to co-branded airline credit cards are typically unsecured. You don’t have to make a security deposit to open these cards, and the best unsecured credit cards are exceptionally rewarding.
However, you normally need a higher credit score to qualify for an unsecured card. These cards have higher interest rates compared to personal loans or secured debt, like a home equity loan. So if you have credit card debt, it can cost you more in interest.
Pros
- You aren’t required to make a security deposit to open an unsecured card
- You can earn rewards for your everyday expenses with unsecured cards, including cash back and ultra-valuable travel rewards
Cons
- The most rewarding unsecured credit cards typically require high credit scores
- Unsecured credit card interest rates are higher than other types of consumer debt
FAQs
What’s the easiest card to get with bad credit?
Typically, the easiest credit cards to get if you have bad credit are secured cards that require an upfront deposit. There are credit cards for bad credit that do not require a deposit, but they usually have fewer rewards and higher fees.
Are there credit cards that don’t require a deposit?
There are credit cards that do not require a security deposit to open, these are known as unsecured credit cards. While there are unsecured credit cards available for bad credit, the best options have higher minimum credit score limits.
Can I get a credit card with a credit score under 500?
You can qualify for a credit card if your credit score is under 500, however, your options are limited. You may be eligible for secured credit cards that require an upfront refundable deposit or unsecured cards for bad credit that don’t require a deposit. Keep in mind, that unsecured credit cards for bad credit generally have higher fees.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best unsecured credit cards for bad credit.
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Our methodology
To determine which unsecured cards offer the best value for anyone with bad credit, CNBC Select analyzed over 250 major credit cards issued through FDIC-insured banks and NCUA-insured credit unions that are widely available in the U.S.
We compared each card on a range of features, including rewards (e.g., cash back, points and miles), annual fees, welcome bonuses, introductory and standard APR and balance transfer fees and foreign transaction fees. We also considered additional perks (e.g., ongoing travel or merchant statement credits), cardholder protections (e.g., purchase protection, $0 liability protection and travel insurance), the application process when available (e.g., is there a credit pull or required credit score) and how easy it is to redeem points (e.g., are rewards are tied to a specific brand; if transferable, to how many/which partners, can you redeem for straight cash back).
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
For the cards that offered a rewards program, we considered consumer spending data forecasts from location intelligence firm Esri to determine where U.S. consumers are spending the most money, like on dining and travel. We used this to help determine what bonus categories are most useful for consumers. Since the value of a point or mile varies based on what they can be redeemed for, we also considered things like transferability and the ability to redeem for cash-back.
When choosing the best unsecured credit cards for bad credit, we focused on cards with fewer fees. This type of card can have additional fees that aren’t common with standard cards, including monthly fees (on top of annual fees) and fees to open the card. Cards with multiple fees or higher fees were deprioritized for this list.
Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
Information about the U.S. Bank Cash+® Visa Signature® Card has been collected independently by CNBC Select and has not been reviewed or provided by the issuer of the card prior to publication.
Petal® 2 “Cash Back, No Fees” Visa® Credit Card is issued by WebBank.
For rates and fees of the Discover it® Secured Credit Card, click here.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
