The pros of unsecured credit cards, compared to secured credit cards, are: 1) No security deposit is needed; 2) They provide a line of credit; and 3) Rewards are both more prevalent and more lucrative.
On the other hand, the cons of unsecured credit cards are: 1) They are harder to get approved for, since the lack of a security deposit exposes banks to potential losses and defaults; and 2) They enable you to spend beyond your means.
All else being equal, an unsecured credit card is better than a secured credit card because there’s no security deposit to put down. A secured card’s deposit is refundable, though, and both secured and unsecured credit cards will help you build credit if used responsibly. So as long as you get either type of credit card, avoid maxing it out, and pay the bill on time every month, you should be in good shape.To learn more, you can check out our breakdown of the pros and cons of credit cards overall. Unsecured credit cards are what most people think of as credit cards, anyway. Our list of the biggest credit card mistakes and how to avoid them should come in handy, too.
The easiest unsecured card to get approved for is the Fingerhut Credit Account. But it won’t suit everyone’s needs. Fingerhut is an online marketplace, and its card can only be used to make purchases on the site. So, while it will give you an unsecured line of credit, it won’t really help you cover emergency expenses.… read full answer
If you’re looking for a card that can be used for anything, the Credit One Bank® Visa® Credit Card is your best bet. You can get approved for it with bad credit. It offers a $300 starting spending limit. And you can use it wherever Visa is accepted.
Those aren’t your only options, though. WalletHub’s editors compared all of the unsecured credit cards in our database of 1,000+ offers. And we selected our favorite easy-to-get offers.
Easiest Unsecured Credit Cards to Get Approved For
The easiest unsecured credit cards to get generally work best for minor emergencies. You will only receive a small amount of spending power, after all.
Unsecured credit cards for people with bad credit also tend to be very expensive, charging lots of fees and high interest rates. So if you don’t need a small emergency loan, the best course of action is to improve your credit inexpensively with a secured card. Secured cards are cheaper than unsecured cards, build credit just as effectively, and offer the closest thing you’ll find to guaranteed approval.
To learn more, check out WalletHub's complete list of the year’s easiest credit cards to get approved for.
Having an unsecured credit card means you won’t be required to place a refundable security deposit. As a result, you will have the ability to truly borrow money from the credit card company. However, a line of credit that you don’t have to prepay can come at a high cost if you have bad credit. That is why WalletHub recommends using a secured credit card if your top priority is rebuilding your credit, as opposed to paying emergency expenses that you can’t afford in cash. You can learn more about the differences between secured and unsecured credit cards here: … read full answerhttps://wallethub.com/edu/secured-credit-card-guide/491/.
A credit score of at least 550 to 650 is needed for an unsecured credit card in most cases, though it’s possible to get approved for an unsecured card with a lower score or even no credit score. For example, some of the best beginner and student cards are unsecured and will approve applicants with little or no credit.… read full answer
If your credit score is below the 550 to 650 threshold needed to get a good unsecured card, you’d be much better off applying for a secured card such as the Discover it® Secured Credit Card or the Secured Mastercard® from Capital One. They’re easier to get than unsecured cards because you’re putting up your own money, typically a minimum deposit of $200, to secure the account.
For people with bad credit who are set on getting an unsecured card, two of the best options are the Credit One Bank® Visa® Credit Card (cash back on select purchases) and the Indigo® Mastercard® for Less than Perfect Credit (no upfront fees). Remember, unsecured credit cards for bad credit do not require a security deposit to open an account. As such, they typically come with low credit limits, high fees and high interest rates.
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