It’s hard to get a credit card if you have bad credit. Secured cards are a good option, but not everyone can put down a deposit. Unsecured credit cards for bad credit offer a pathway to rebuild your credit score without the need for a security deposit, but these cards often come with high fees, substantial interest rates, and limited spending power, making them a less-than-ideal choice.
To help you make the best choice, we’ve narrowed down the best unsecured credit cards for bad credit. We’ll explore their features and whether or not they’re the best option for rebuilding your credit
| CARD | Monthly fee | APR | Initial credit limit | Rewards |
|---|---|---|---|---|
| Indigo® Mastercard® Credit Card | $0 | 24.90% | $300 | NO |
| Surge® Platinum Mastercard® | $10/month after the first year | 29.99% | $300 – $1000 | NO |
| Credit One Platinum Visa | Annual fee is billed monthly | 29.24% | $300 | YES |
| Milestone Mastercard® – $700 Credit Limit | See terms | See terms | $700 | NO |
| Destiny Mastercard® | See terms | See terms | $700 | NO |
What Is an Unsecured Credit Card for Bad Credit?
An unsecured credit card for bad credit is a regular credit card, meaning it has the same features and works the same way as any other traditional, unsecured credit card. The difference is that it’s specifically designed for people with bad credit. These credit cards have more lenient approval criteria, making it easier for people with damaged credit to qualify. They also tend to have high fees and high interest rates. Many have both annual and monthly fees, adding up to a hefty cost.
⚠️ If you use one of these cards, you will probably want to treat it as a temporary credit building tool. Use it only when you need to, pay your bills in full and on time every month (so you don’t have to pay interest), and move to a card with lower fees as soon as your credit allows it.
5 Best Unsecured Credit Cards for Bad Credit
Let’s take a closer look at our top five picks.
#1
Indigo® Mastercard® Credit Card
The Indigo® Mastercard® Credit Card offers fast, easy prequalification and no monthly fee. The annual fee is still on the steep side and the initial credit limit is low.
Fees
$0-$99
APR
24.9%
Initial credit limit
$300
Monthly fee
$0
#2
Surge® Platinum Mastercard®
The Surge® Platinum Mastercard® offers a higher initial credit limit than most unsecured cards for bad credit, but watch out for those fees!
Fees
$75-$125
APR
29.99%
Initial credit limit
$300 to $1000
Monthly fee
$10/month after the first year
#3
Credit One Platinum Visa
The Credit One Bank Platinum Visa is one of the few unsecured credit cards for bad credit that offer borrowers cashback rewards.
Fees
$75 first year, then $99
APR
29.24%
Initial credit limit
$300
Monthly fee
Annual fee is billed monthly
#4
Milestone Mastercard® – $700 Credit Limit
The Milestone Mastercard® is specifically designed for borrowers with a challenging credit history. The $700 credit limit is high for cards in this category, but the fees are on the high side too.
Annual Fee
See terms
APR
See terms
Initial credit limit
$700
Monthly fee
$0 the first year (billed $0 each month); $150 annually thereafter (billed $12.50 each month)
#5
Destiny Mastercard®
The Destiny Mastercard’s fees are on the high side, but the card is accessible to people with bad credit and the foreign transaction fee is reasonable, making it one of the better travel options in this category.
Fees
See terms
APR
See terms
Initial credit limit
$700
Monthly fee
$0 the first year (billed $0 each month); $150 annually thereafter (billed $12.50 each month)
Indigo® Mastercard® Credit Card
👉 Summary: With no monthly maintenance fees and easy pre-qualification, the Indigo® Mastercard® Credit Card is one of the better unsecured credit cards for borrowers with bad credit.
➕ Pros:
- No monthly maintenance fee
- Easy pre-qualification
➖ Cons:
- Unpredictable annual fee (based on creditworthiness)
- High APR
- No rewards
Description
Indigo® Mastercard® Credit Card can help people with challenging credit histories rebuild their credit. You can check if you pre-qualify within minutes for an initial credit limit of $300, with no impact on your credit score.
Unlike other unsecured cards for bad credit, Indigo doesn’t bury you in high monthly maintenance fees or program fees. It does have an unpredictable annual fee that can range from $0 to $75 during your first year and $99 every year after. The fee is based on your creditworthiness. If Indigo considers you a risky client, the fee will be on the higher end of the spectrum.
Overall, it’s a fair price to pay to improve your credit, as most cards of its type have even higher fees. If you want to improve your credit without paying a fee and you don’t need an emergency loan, a secured credit card is a much better option.
Indigo reports your activity to all three major credit bureaus. Using the card responsibly can improve your credit score and help you qualify for a better unsecured credit card in the future. As long you pay your balance in full every month to avoid paying the high APR of 24.9%, Indigo is one of the better options in this category.
| Fees | $0-$99 |
| APR | 24.9% |
| Initial credit limit | $300 |
| Monthly fee | $0 |
Surge® Platinum Mastercard®
👉 Summary: If you have less than perfect credit and need access to a higher credit limit, the Surge® Platinum Mastercard® may be able to help you, but it will cost.
➕ Pros:
- Potential for a high initial credit limit
- Potential credit limit increase after 6 months
- Free monthly credit score
➖ Cons:
- Very high APR
- High fees
- No rewards
Description
Celtic Bank’s Surge® Platinum Mastercard® differentiates itself by offering borrowers potential access to an initial credit limit between $300 and $1000. The amount you’re approved for will depend on your creditworthiness at the time of application.
Once you’re approved, you may be able to qualify for a limit increase in as little as 6 months. This can help you improve your credit score faster because it can lower your credit utilization ratio. Free monthly access to monitor your credit score is another perk.
If you’re looking for an affordable way to rebuild your credit score, Surge is not the best choice. You’ll pay $125 annually during your first year ($75 after that), and $120 in monthly fees every year after. The monthly fees are waived if your credit limit is $750 or $1000. Surge also has one of the highest APRs on the market and no rewards.
Overall, Surge is a decent short-term solution if you need access to funds. The high fees and APR mean you should focus on rebuilding your credit quickly and move on to a less expensive product.
| Fees | $75-$125 |
| APR | 29.99% |
| Initial credit limit | $300 to $1000 |
| Monthly fee | $10/month after the first year |
Credit One Bank Platinum Visa for Rebuilding Credit
👉 Summary: The Credit One Bank Platinum Visa is one of the few unsecured credit cards for bad credit that offer borrowers cashback rewards.
➕ Pros:
- Cashback rewards
- Free Experian credit score access
➖ Cons:
- High yearly fee
- High APR
- Limited buying power
Description
Credit One lets you rebuild your credit while earning 1% cashback rewards on eligible purchases like gas, groceries, and more.
While cashback rewards may seem like a bonus worth the $75 to $99 annual fee, you’d need a higher limit than the initial $300 it offers if you want to make the most of your points. If earning points is important to you, this type of credit card is not the best option. There are better secured credit cards with no annual fee that offer better cashback rewards.
Credit One regularly reviews your account to determine if you’re eligible for a limit increase and gives you free access to your Experian credit score. This will help you to rebuild your credit and eventually graduate to a better credit card.
| Fees | $75 first year, then $99 |
| APR | 29.24% |
| Initial credit limit | $300 |
| Monthly fee | Annual fee is billed monthly |
Milestone Mastercard®
👉 Summary: The Milestone Mastercard® is specifically designed for borrowers with a challenging credit history and is one of the cards with a higher credit limit.
➕ Pros:
- Bad credit is okay
- You may qualify for reasonable annual fees
- High credit limit
➖ Cons:
- High APR
- High yearly fee for some applicants
- Limited buying power
Description
The card’s initial credit limit is a rather high $700, which is reduced once you subtract the annual fee. The credit limit is pretty high for this type of card. Even when you subtract the annual fee, it still has more buying power than most cards.
A high credit limit can help you keep your credit utilization down if you keep a low balance. It can also encourage you to run up a balance with a very high interest rate.
In the first year of using the card, the annual fee can be as high as $175, so it’s best to focus on building up your credit score and switching to a card with lower fees. Despite its annual fee and high APR of 35.90% (which you won’t have to pay if you make every payment on time and in full), it can still be one of the more affordable unsecured credit cards for bad credit on the market.
| Annual Fee | See terms |
| APR | See terms |
| Initial credit limit | $700 for qualified carfholders |
| Monthly fee | $0 the first year (billed $0 each month); $150 annually thereafter (billed $12.50 each month) |
*See terms
Destiny Mastercard®
👉 Summary: The Destiny Mastercard® is available to people with bad credit. Fees are on the high side, but the card is accessible, and the foreign transaction fee is reasonable, making it one of the better travel options in this category.
➕ Pros:
- Borrowers with bad credit can get approved
- Low foreign transaction fee
➖ Cons:
- High APR
- High fees
- No rewards
Description
Like most credit cards of its kind, it has a very high APR (35.90%), so carrying a balance from one month to the next can end up costing you.
The $700 credit limit could help you keep your credit utilization down but could also encourage you to carry a balance.
The best way to take advantage of this card or any other unsecured credit card for bad credit is to pay off your balance each month and keep your credit utilization low.
While it doesn’t have any rewards, it gives borrowers with bad credit a chance to improve their credit history.
| Annual Fee | See terms |
| APR | See terms |
| Initial credit limit | $700 for qualified cardholders |
| Monthly fee | $0 the first year (billed $0 each month); $150 annually thereafter (billed $12.50 each month) |
*See terms
Unsecured Credit Cards for Bad Credit vs Secured Credit Cards
Unsecured credit cards for bad credit and secured cards can both help you build a positive credit history. If you pay your bills on time and keep your credit utilization low you will improve your credit.
But which is better for rebuilding credit?
👉 Typically, a “bad” or poor credit score is anything under the 600 range. For example, Vantage considers a credit score between 500 and 600 poor, while FICO considers a score between 300 and 570 very poor.
Secured credit cards are usually a better alternative. The best secured credit cards have no annual fee, offer good cash back rewards, and have a lower APR than most unsecured credit cards for bad credit.
The only difference between secured and unsecured credit cards is the security deposit. Secured credit cards require you to use your own money to put down a refundable security deposit which will act as your new credit limit.
Your security deposit is fully refundable, so you’ll get your money back when you close your account. Many secured cards will convert your card to an unsecured card if you establish a good payment history.
If you can’t or don’t want to put down your own money as a deposit, unsecured credit cards for bad credit are your next best alternative. They don’t require a security deposit and give you emergency access to credit.
Because lenders take on more risk by extending credit to someone with a spotty credit history, unsecured credit cards for bad credit have many disadvantages. They have high APRs, high fees, and little spending power. Many of them also have setup fees and other monthly maintenance costs.
⚠️ If you keep an unsecured card for bad credit for more than a year or two you will spend more on fees than you would for a deposit on a secured card, and you won’t get that money back.
The unsecured credit cards we’ve selected are better than most unsecured credit cards for bad credit. That being said, secured credit cards are a better way to improve your credit score.
☝️ If you do use an unsecured card for bad credit you will usually want to replace it with a card that has lower fees as soon as your credit score allows it.
Bottom Line
Unsecured credit cards for bad credit can help you repair a history of bad credit while you enjoy the perks of a credit card.
While they don’t require a security deposit, that doesn’t mean they’re better than secured credit cards. They’re expensive, have limited spending power, and most have no rewards. It’s often better to use a secured credit card with no annual fee to repair your credit and gain access to the advantages of a credit card.
Interested