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.

What kinds of unsecured credit cards are there?

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.

Here are some popular unsecured credit cards:

• Cash rewards: Chase Freedom Unlimited®. Good credit required.
• Travel rewards: Chase Sapphire Reserve®. Excellent credit required.
• Store card: Best Buy® Credit Card. Good credit required.
• Warehouse Clubs: Costco Anywhere Visa® Card by Citi. Excellent credit required.
• For students: Journey Student Rewards from Capital One. Limited History accepted.

Should you choose a secured or unsecured credit card?

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.

One of the easiest unsecured cards to get approved for is the Credit One Bank® Platinum Visa® for Rebuilding Credit. You can get approved for it even with bad (300) credit. It offers a $300 starting spending limit. And you can use it wherever VISA is accepted.

This isn’t your only option, though. WalletHub’s editors compared all of the unsecured credit cards in our database of 1,500+ offers. And we selected our favorite easy-to-get offers.

Here are some of the easiest unsecured credit cards to get approved for:

• Rewards: Credit One Visa.
• Small businesses: Capital One® Spark® Classic for Business​.
• No credit: Capital One Platinum Credit Card
• No annual fee: Petal® 2 Visa® Credit Card.
• Easiest store card: Fingerhut Credit Account.
• Students: Journey Student Rewards from Capital One.

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​.

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.

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® Platinum Visa® for Rebuilding Credit (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.

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® Secured Credit Cardis 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 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 Card
• Credit One Bank® Platinum Visa®
• 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 Petal® 2 Visa® Credit Card because it has a $0 annual fee and a 0% foreign fee. Petal 2 Card also rewards cardholders with up to 1.5% cash back.

Or, 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.

Best Unsecured Credit Cards for No Credit

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.

The best Chase unsecured credit card is Chase Freedom Unlimited®. It's a great all-rounder that offers extensive cash back rewards coupled with an attractive financing offer and a $0 annual fee. Chase Freedom Unlimited offers $200 for spending $500 in the first 3 months. And rewards are supplemented by 5% cash back on grocery store purchases for the first year (up to $12,000 spent), 5% cash back on travel through Chase, 3% cash back at restaurants and drugstores, and 1.5% back on all other purchases.

The majority of Chase credit cards are designed specifically for customers with good credit or better. Chase offers some of the most sought-after credit cards on the market. But which one is the best can be viewed as a matter of personal preference, depending on your individual needs.

Here are the best Chase unsecured credit cards:

• Best Overall: Chase Freedom Unlimited®
  Offers $200 for spending $500 in the first 3 months. Ongoing rewards consisting of 5% cash back on grocery store purchases for the first year (up to $12,000 spent), 5% cash back on travel through Chase, 3% cash back at restaurants and drugstores, and 1.5% back on all other purchases. Introductory purchase APR of 0% for 15 months (14.99% - 23.74% (V), based on creditworthiness, thereafter). $0 annual fee. The credit score requirement is 700 at a minimum. That means you need good credit or better for approval.
• Best for Travel: Chase Sapphire Preferred® Card
  Offers 100,000 bonus points for spending $4,000 in the first 3 months. Earns 2 points per $1 spent on dining and travel, and 1 point per $1 on all other purchases. $0 foreign transaction fee. $0 annual fee. The credit score requirement is 700 at a minimum. That means you need good credit or better for approval.
• Best for Cash Back: Chase Freedom Flex℠
  While similar to the Chase Freedom Unlimited, Chase Freedom Flex will be the better option for those with changing spending habits, due to its rotating bonus categories. Offers $200 for spending $500 in the first 3 months. Earns 5% cash back on grocery store purchases for the first year (up to $12,000 spent), 5% cash back on up to $1,500 spent per quarter in bonus categories (which change every quarter and require activation), 5% cash back on travel through Chase, 3% back at restaurants and drugstores, and 1% back on all other purchases. Introductory purchase APR of 0% for 15 months (14.99% - 23.74% (V), based on creditworthiness, thereafter). $0 annual fee. The credit score requirement is 700 at a minimum. That means you need good credit or better for approval.
• Best for Students: Chase Freedom® Student credit card
  Offers $50 after your first purchase made in the first 3 months. Earns 1% cash back on all purchases. $0 annual fee. Students with limited credit (less than 3 years of credit history) are eligible for approval.

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® Customized Cash Rewards credit card
• BankAmericard® credit card
• Bank of America® Travel Rewards credit card
• Business Advantage Customized 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.

There aren’t any unsecured cards you can get with no credit check. There are, however, secured credit cards that don’t check applicants’ credit history.

It is also worth noting that you may receive offers for cards that guarantee approval, or offers that you are “pre-approved” for; but those also require you to apply. And if you submit an application, you are giving the bank permission to permission to check your credit report and your credit score may suffer as a result.

Here’s what happens with credit checks for unsecured cards:

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 a 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® Credit Card, the OpenSky® Secured Visa® Credit Card, and the First Progress Platinum Elite Mastercard® Secured Credit Card 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.