Credit Cards for Poor or No Credit
Limited credit history? Less than stellar credit? Looking to start building your credit? Whatever the situation may be, there are a number of credit cards perfect for individuals looking to build or rebuild their credit score. View the top secured and unsecured credit cards for poor or no credit in 2020 below.
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The Upgrade Card
The Flexibility of a Credit Card with The Low-Cost Predictability of a Personal Loan
New offer: The Upgrade Card combines the flexibility and convenience of a credit card with the low-cost predictability of a personal loan. This card is ideal for individuals with fair, good, or excellent credit. The Upgrade Card is also perfect for making larger purchases that you may need to time to pay off. A Visa Signature credit card, you can use the Upgrade Card wherever Visa is accepted. The Upgrade Card features lower costs compared to traditional credit cards and credit lines ranging from $500 to $50,000. Click here to see terms, conditions, rates, and fees.
If you’ve been searching around for credit cards for poor credit or credit cards for no credit, you’ve probably seen a fair amount of offers for secured credit cards. So, what exactly is a secured credit card? While standard or unsecured credit cards are backed by your credit score, secured credit cards are backed by a security deposit. When you apply for a secured credit card, you will be required to secure or back your line of credit with a security deposit. You will usually be required to link a checking account to your credit card. Depending on the credit card, you will also be required to put a deposit ranging from 50% to 200% of your line of credit. Secured credit cards are a fantastic way to access credit cards even if you have a less than stellar credit history. Learn more about secured and unsecured credit cards by clicking this link. Here are some of the best secured credit cards available now.
The College Points' Top Pick
The Merrick Bank Secured Visa® from Merrick Bank is a well-rounded secured credit card. Ideal for individuals with limited, poor, or fair credit, this card reports to all 3 major credit bureaus. You’ll also receive your FICO® score each month at no additional charge. Credit lines range from $200 to $2,000 depending on your desired security deposit. Additionally, you’ll also have the opportunity to receive an increased line of credit after 9 months of having your card. See full terms, fees, rates, and product details.
Secured Credit Cards
The Merrick Bank Secured Visa® from Merrick Bank is a well-rounded secured credit card.This card reports to all 3 major credit bureaus. Credit lines range from $200 to $2,000 depending on your desired security deposit. You’ll also have the opportunity to receive an increased line of credit after 9 months of having your card.
The First Progress Platinum Elite MasterCard® Secured Credit Card is a fantastic secured credit card. This card comes with a low minimum security deposit (just $200) and a low annual fee. This card is ideal for individuals with limited credit history or bad to fair credit. Maintain a security deposit of $200 to use your card
First Progress Platinum Select MasterCard® Secured Credit Card
The First Progress Platinum Select Mastercard secured credit card is a full-feature Platinum Mastercard. Top features of this card include a low APR and an annual fee of just $39. Applying for this card doesn’t impact your credit score. Additionally, this card reports to all 3 major credit bureaus. Fully-refundable deposit of $200 to $2,000 required.
No credit check is required when you apply for the Applied Bank Secured Visa Gold Preferred Credit Card. Low 9.99% fixed APR that won’t increase even if you are late on payments. $200 minimum security deposit required.
No credit history required with the First Progress Platinum Prestige Mastercard secured credit card. Credit line is secured with a fully-refundable deposit of $200 to $2,000. Apply in minutes with no negative impact to your credit score.
While a secured credit card is often the first choice card for individuals with poor or no credit, there are a number of traditional or unsecured credit cards available. Unsecured credits cards for poor, bad, or no credit are typically backed by the applicant’s income as opposed to their credit history. However, this isn’t the case with all unsecured credit cards for poor or no credit. Learn more about secured and unsecured credit cards by clicking this link. Here are some of the best secured credit cards available now.
The College Points' Top Pick
The Applied Bank® Unsecured Classic Visa® Card is “designed for you to build credit.” Unlike many other credit building solutions, this credit card is unsecured. With the Applied Bank Unsecured Class Visa Card, cardholders do not need to be secured with a deposit account like a checking account. This card is ideal for individuals with limited or bad credit. Approved cardholders receive benefits like automatic credit reporting to the three major credit reporting bureaus and the opportunity to access additional credit. See full terms, rates, and fees here.
Unsecured Credit Cards
The Surge Mastercard is a credit card with $300, $500, and $750 credit limits. Optional security deposit to access $500 credit limit. Free access to your Vantage 3.0 score From TransUnion when you sign up for e-statements. Checking account required.
The First Digital Mastercard is a genuine full-service Mastercard credit card that’s accepted nationwide. Designed for US consumers who may have had credit issues in the past. Build up your credit history with a card that reports to all three major credit bureaus every month. Checking account required.
With the Merit Platinum Card, a credit check is not required. Members can receive an initial $500 credit limit. Applicants must be 21 years of age, a legal U.S. resident, and provide accurate identity and application information. Card reports to all 3 major credit bureaus.
The Petal Visa® Credit Card is a highly ranked unsecured credit card designed to build credit and manage your spending. The Petal Visa® Card features tools that help you stick to your credit limit and automate your payments.
Secured Vs. Unsecured
What Are Secured Credit Cards?
If you’ve been searching for credit cards with high approval odds despite a less than stellar credit score, you’ve likely come across several secured credit cards. While a secured credit card is used like any other credit card, there is one major difference between a secured and unsecured credit card. Secured credit cards are backed by a deposit, not credit history or income. However, secured credit cards may still require applicants to undergo a credit check and verify their income. Nevertheless, in the event a secured credit card requires the applicant to undergo a credit check or income verification, both factors carry less weight in determining whether or not to extend a line of credit to the applicant. As previously mentioned, this is because secured credit cards as backed by a security deposit.
When you apply for a secured credit card, you may be asked to select a desired line of credit amount. You may also be assigned a line of credit. In both scenarios, you will be required to back up your credit line with a security deposit. The amount required to secure your new line of credit will vary. Some secured credit cards require cardholders to secure their line of credit with a deposit amounting to just 10% of their credit line. Other cards may require a deposit of 50%, 100%, or 200% of the applicant’s desired line of credit.
So, what exactly is this security deposit? When you apply for a secured credit card, you will likely be asked to link a bank account. Depending on the card and line of credit, a set amount is withdrawn from your linked bank account. That amount is then used to secure your line of credit. Secured credit cards are a fantastic way to repair or build your credit score. While traditional credit cards (unsecured credit cards) require applicants to undergo a credit check, secured cards allow applicants to bypass a credit check. Secured cards allow individuals with poor or limited credit to receive a credit card. Over time as you make payments, your payment history is reported to credit bureaus. Eventually, your score will begin to improve, allowing you to access additional lines of credit and other credit cards.
What Are Unsecured Credit Cards?
So, what’s an unsecured credit card? An unsecured credit card is essentially any traditional credit card. A traditional credit card requires applicants to undergo a credit check and verify their income. In most cases, the card issuer may not immediately require an approved cardholder to link a bank account. Unsecured credit cards back a cardholder’s line of credit using their credit score and income.
Traditional unsecured credit cards are often difficult to get if you have poor credit or limited credit history. This is due to the card issuer or bank not being able to guarantee that the applicant is low credit risk. However, there are still unsecured credit cards available to individuals with less than stellar credit or limited credit history. These cards often require an applicant to link their bank account during the application process. Unsecured credit cards for individuals with poor or limited credit typically come with a significantly lower credit limit and higher interest rates. Still, unsecured credit cards for poor credit are a great way to repair or build credit without having to provide a security deposit.
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