Unsecured Credit Cards

An unsecured credit card is a credit card with a credit line that is not "secured" by collateral such as a refundable security deposit. In contrast, secured credit cards require a deposit of at least $200-$300, and the deposit amount becomes the account’s spending limit. Most of the time, the phrase "credit card" refers to an unsecured credit card.

Types of unsecured credit cards

More than 9 in 10 credit card offers are unsecured, with no deposit needed. So, it’s no surprise there are lots of slightly different types of unsecured credit cards. There are unsecured cards for each credit rating, from excellent credit to bad credit. There are unsecured credit cards for students, small business owners and everyone else. Some reward cardholders for making purchases, while others offer low introductory APRs. Some have low fees; others don’t.

Given the variety, finding the right card for your needs is not as simple as just setting out in search of an unsecured credit card. You need to compare the available offers based on the features – other than security deposit requirements – that figure to have the greatest impact on your life. For your convenience, we’ll highlight a handful of the best, most popular unsecured card offers below.

Popular Unsecured Credit Cards:

• Chase Sapphire Preferred® Card - Good
• Wells Fargo Cash Wise Visa® card - Good
• Capital One QuicksilverOne Cash Rewards Credit Card - Limited History
• Capital One Platinum Credit Card - Limited History
• Credit One Bank® Platinum Visa® with Cash Back Rewards - Fair

Secured or unsecured?

Deciding between an unsecured credit card and a secured credit card is a matter of creditworthiness. People with bad credit or limited credit history will benefit most from a secured card because they may not be able to get good terms with an unsecured card. Few banks and credit unions are willing to take on the risk of lending to applicants with badly damaged credit. As a result, there is a limited selection of unsecured credit card offers for people with below-average credit, and the cards that are available can be pretty expensive. Credit cards for students with no credit are a notable exception, though.

Given that borrowers basically prepay for their purchasing power with secured credit cards, such cards offer higher approval odds and charge lower fees than unsecured cards for poor credit. Secured credit cards also report to the major credit bureaus each month, and they look exactly like unsecured credit cards on credit reports. That means using a secured card responsibly can help you build or rebuild your credit just like an unsecured credit card. To learn more, check out our secured vs. unsecured credit cards comparison.

The easiest unsecured card to get 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.

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 Card to Get Approved For

• Fingerhut Credit Account: Overall
• Credit One Bank® Visa® Credit Card: Rewards
• Capital One® Spark® Classic for Business: Small Business
• Petal® 2 Visa® Credit Card: Limited Credit
• Deserve® EDU Mastercard for Students: Students

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​.

The minimum credit score for unsecured cards for bad credit is around 500. You can get approved with a really low credit score, but you'll also have to live with lower credit limits, high annual fees and high APR rates.

Honestly, I'd say a secured card is probably a smarter alternative.

The best credit card for a 550 credit score is the OpenSky® Secured Visa® Credit Card. There’s no credit check when you apply, so approval is almost guaranteed. You just need $200 for a refundable security deposit and enough income to make monthly payments. This card also reports to all three major credit bureaus every month, which is your ticket to a better credit score. And a $35 annual fee isn’t too much to pay for that.

The Discover it® Securedis another great 550 credit score credit card. It has a $0 annual fee and actually rewards you for making purchases. A 550 credit score won’t keep you from getting approved either. But a pending non-chapter 7 bankruptcy will.

Those aren’t the only credit cards you can get with a 550 credit score. In fact, there are two kinds of credit cards for people at that credit level: Secured credit cards and unsecured credit cards for bad credit. A 550 credit score is within the bad credit range, unfortunately. Bad credit goes from 300 to 639. But picking the right 550 credit score credit card and using it responsibly could help you improve your score to “fair” territory within 12-18 months.

The best credit cards for a 550 score:

• OpenSky® Secured Visa® Credit Card
• Discover it® Secured
• Credit One Bank® Platinum Visa® with Cash Back Rewards
• Secured Mastercard® from Capital One
• Milestone® Mastercard® - Less Than Perfect Credit Considered

Before applying for a card, make sure to check out its terms and conditions, or a FAQ page if there is one, just to make sure you fit the criteria for eligibility. You can also try getting pre-approved for a credit card. It won’t hurt your credit, and it will give you a good idea of your odds if you decide to apply.

The main difference between a secured credit card and an unsecured credit card is that you’re required to place a refundable security deposit to get a secured card. The amount of this deposit typically serves as the credit limit for the secured card, which means you have to pre-pay for purchases with a secured card. You’ll usually have to put down the deposit when you apply, and you’ll get it back when you close your account or upgrade to an unsecured credit card. Unsecured credit cards, on the other hand, give access to a credit line that isn’t “secured” with a deposit.

There is no difference between secured and unsecured credit cards when it comes to building credit. All major secured cards report account information to the major credit bureaus on a monthly basis, just like unsecured cards. In fact, you can’t tell secured and unsecured cards apart on a credit report. So as long as you use either type of card responsibly, your credit score will improve.

Below, you can get a better feel for the differences and similarities between secured and unsecured credit cards by seeing how they compare in several important categories.

Secured vs. Unsecured Credit Cards: Key Differences

Approval Odds of Secured Credit Cards vs Unsecured Credit Cards

Secured credit cards are easier to get approved for than unsecured cards. Because you’re technically pre-funding your credit line with a secured credit card, you can’t spend more than you can afford to repay. The deposit is held in an account by the card issuer, so if you don’t pay your bills, the deposit is used to cover the cost. That’s why secured credit cards are able to offer nearly-guaranteed approval to people with bad credit, while charging very reasonable fees. That being said, secured credit cards are real credit cards – they have interest rates, and you have to pay your monthly bill on time.

In contrast, unsecured credit cards tend to be harder to get, because the card issuer takes on a lot more risk by extending an unsecured credit line. In other words, you can spend more on an unsecured card than you can afford to repay. There are unsecured credit cards for people of all credit levels, but if you have bad credit, you’re likely to pay high non-refundable fees for a very small line of unsecured credit.

Of course, unsecured credit cards have more potential overall and are what you want in your wallet at the end of the day. No secured credit card offers a $400+ initial bonus or a 0% APR for 12+ months. But plenty of unsecured credit cards do. It’s just that you have to prove yourself before becoming eligible for such an offer. And using a secured card is one of the most dependable ways to do that, especially if you’ve made mistakes with credit in the past.

Choosing Between Secured & Unsecured Credit Cards

Overall, the toughest decision between secured and unsecured credit cards comes when you have damaged credit. With bad credit, it’s harder to get approved for an unsecured credit card, and the unsecured options available to people with bad credit are far less attractive.

If you have limited, fair, good or excellent credit, you should be able to start with a solid unsecured card. If you’ve got bad credit and the flexibility to choose either a secured credit card or an unsecured one, always go secured. It will cost you a lot less in the long run and help you build credit just the same. You can check your credit score for free on WalletHub to see where you stand.

The best unsecured credit card for no credit is the Capital One Platinum Credit Card because it has a $0 annual fee, a $0 foreign fee, and a $300 minimum credit line. Capital One Platinum does not have rewards, but no annual fee is more important when you’re first starting out with credit. If you’re willing to pay for better perks, consider the Capital One QuicksilverOne Card, which has a $39 annual fee and gives 1.5% cash back on all purchases.

If you’re in college, you can get a student credit card. Student cards are unsecured credit cards for no credit that are available only to college students. They tend to give better terms than non-student unsecured credit cards for no credit because issuers predict college graduates will have larger incomes. One of the best options is Discover it Student Chrome. It gives 2% cash back on the first $1,000 you spend each quarter at gas stations and restaurants, plus 1% on everything else. On top of that, Discover matches all the cash back you earn during your first year. And they give you $20 for every year you earn a 3.0 or higher GPA.

Here are the best unsecured credit cards for no credit:

• Best for no annual fee: Capital One Platinum Credit Card. $0 annual fee. $0 foreign transaction fee. 26.99% (V) regular APR.
• Best for cash back: Capital One QuicksilverOne Cash Rewards Credit Card. $39 annual fee. $0 foreign transaction fee. 1.5% cash back on all purchases. 26.99% (V) regular APR.
• Best for business: Capital One® Spark® Classic for Business. $0 annual fee. $0 foreign transaction fee. 1% cash back on all purchases. 26.99% (V) regular APR.
• Best for student cash back: Discover it® Student chrome. $0 annual fee. 0% foreign transaction fee. 2% cash back on the first $1,000 at gas stations and restaurants per quarter. 1% cash back on all other purchases. First year’s cash back matched. 0% APR for 6 months on purchases. 12.99% - 21.99% (V) regular APR.
• Best for student travel: Bank of America® Travel Rewards Credit Card for Students. $0 annual fee. 0% foreign transaction fee. 25,000 bonus points when you spend $1,000 in the first 90 days. 3 points / $1 at the BofA Travel Center and 1.5 points / $1 on all other purchases. 0% APR for 12 months on purchases. 14.99% - 22.99% (V) regular APR.
• Easiest approval: Credit One Bank® Visa® Credit Card. $0 - $99 annual fee, depending on creditworthiness. 3% foreign transaction fee. 1% cash back on eligible purchases. 17.99% - 23.99% (V) regular APR.

It’s pretty easy to qualify for unsecured credit cards for no credit, provided that you have a steady income. But if you want the absolute highest chances of approval, you may want to consider secured cards. They help you build credit just as well as unsecured cards, but you have to put down a security deposit to open them.

There is no Chase unsecured credit card for bad credit available at this time. In fact, Chase does not offer any starter credit cards, unsecured or secured, for people with less than good credit.

The majority of Chase credit cards are designed specifically for customers with good to excellent credit. Chase offers some of the most sought-after credit cards on the market. Those include the Freedom, Freedom Unlimited; and the Sapphire Preferred and Reserve cards. All require an excellent credit score to qualify.

The Ink Business Preferred and Cash business cards are among the best in its class, and the co-branded IHG Rewards Club Premier is a highly-regarded hotel rewards card.

Simply put, if you’re in the market for an unsecured credit card for bad credit, Chase would be one of the least likely places to begin your search. There are plenty of options out there from other issuers, though. First Access VISA, Indigo Mastercard are among the cards targeted for people with bad credit.

But an unsecured credit card for bad credit can be costly. Annual fees are inevitable, and some cards, such as the First Access VISA charge a $6.25 monthly fee after the first year.

Unless you have your heart set on an unsecured card, you’d likely be better off with a secured card. The Capital One Platinum and Discover it Secured cards require a deposit to establish your line of credit, and may provide an opportunity to transition to an unsecured credit card if you consistently make your payments on time. Plus, you’ll receive your deposit back in full when you close your account in good standing.

Most Bank of America credit cards are unsecured, with no deposit required. There are options with cash back, travel rewards, low APRs and more.

Here are the best Bank of America Unsecured Credit Cards:

• Bank of America® Travel Rewards Credit Card for Students
• Bank of America® Cash Rewards credit card
• BankAmericard® credit card
• Bank of America® Travel Rewards credit card
• Business Advantage Cash Rewards Credit Card
• Bank of America® Premium Rewards® credit card

To make sure you find the right credit card for your needs, check out other popular BofA cards as well as major unsecured credit cards.

Discover’s “unsecured” credit cards do not require a security deposit. Nearly all Discover cards are unsecured, so there are options to choose from whether you’re interested in cash back, travel rewards, low APRs, low fees or building credit. Just make sure to check your latest credit score as well as the cards’ approval requirements before you apply. Some unsecured Discover cards are easier to get than others.

Best Discover unsecured credit cards:

• Discover it® Miles
• Discover it® chrome
• Discover it® Student chrome
• Discover it® Student Cash Back
• Discover it® Cash Back

If you’re looking for some good unsecured cards for bad credit, WalletHub has a comprehensive list to help you out.

You cannot get an unsecured card with no credit check. You may receive offers for cards that guarantee approval, but those are predominantly for secured cards, and will require an upfront deposit. Guaranteed approval may also actually mean “pre-approved.”

The caveat is that to have a shot at receiving the card. you will still actually have to apply. And if you submit an application, you are giving the bank permission to permission to check your credit report.

Regardless of your credit profile, if you’re going to apply for an unsecured credit card, a credit check is necessary. An issuer has to have some indication of your ability to pay back the debt, and the information in your credit report will assist them in making that assessment. Even if you’re a student, or have limited credit, an issuer will need to know that before they’ll extend you any credit.

And while there is an line of unsecured credit cards available for people with bad or limited credit, approval is not guaranteed without a credit check. That might seem to defeat the purpose, providing customers an opportunity to rebuild or establish credit. But there are instances that may surface during a credit check that would prompt an issuer may reject an application.

If you have a pending bankruptcy on your credit report, you will have little chance of getting approved for an unsecured credit card, and likely most secured cards. You might still be in the running for a secured credit card with no credit check.

The Applied Bank Secured Visa Gold Preferred, OpenSky Secured Visa, and Green Dot primor Secured Visa Classic all promote no credit check. You’ll have to submit a deposit of at least $200 to set your credit limit, and some of that limit will be eaten up by annual fees.