Best Unsecured Credit Cards for Bad Credit 2024

Top pick

Petal® 2 Visa® card

4.2

Annual fee

$0

Rewards rate

1%–10%

Intro offer

N/A

Perfect for those with no credit. No credit score is needed to qualify.

192 people chose this

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Account Basics

Fees/Restrictions

Why we like it

As far as unsecured credit cards go, the Petal® 2 Visa® Credit Card is the cream of the crop. It stands out with its high credit limit of $10,000, which completely overshadows other unsecured cards (often limited to $300).

Not only does the Petal® 2 Visa® give you some spending power, but can also earn you 1%–1.5% cash-back and 2%–10% cash-back at select merchants. No need to worry about extra fees either, as Petal® 2 Visa® won’t charge you a cent for foreign transactions, late payments, or annual fees.

What to look out for

Unsecured cards have their downsides, but the Petal® 2 Visa® makes a solid attempt to keep pitfalls to a minimum. The main drawback is that those with a rocky credit history may struggle to get approval—and if you’ve filed for bankruptcy in the last three years, you won’t be eligible.

Despite its many perks, the Petal® 2 Visa® doesn’t provide an introductory APR, which is a shame since their interest rates are on the higher end of the scale.

Establish payment history

Indigo® Mastercard®

3

Annual Fee

$75

Reward rate

N/A

Intro offer

N/A

52 people chose this

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Fees/Restrictions

Why we like it

The Indigo® Mastercard® Credit Card is a good option for those with a challenging credit history, and may even accept those who have previously declared bankruptcy.

Monthly payments are reported to all major credit bureaus, so you can recover from your turbulent credit history if you show financial responsibility and make payments on time.

If rocky credit history puts you off, Indigo® Mastercard® will let you prequalify without damaging your credit score.

What to look out for

The downside of unsecured cards for bad credit is the lack of rewards and perks— and the Indigo® Mastercard® is no exception.

The card comes with an annual fee that’ll depend on your creditworthiness—it can go up to $99.

Global reach

FIT Mastercard®

2.8

Annual Fee

$99

Reward rate

N/A

Intro offer

N/A

32 people chose this

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Fees/Restrictions

Why we like it

The FIT® Platinum Mastercard® comes with many Mastercard perks—you can use it in over 210 countries—and with Mastercard Zero Liability Protection, you won’t need to worry about unauthorized charges.

It also offers a fast application process with free pre-approval that won’t damage your credit score. The card also has a high credit limit, doubling if you make timely payments for the first six months.

What to look out for

There’s one major problem with the FIT® Platinum Mastercard® . It ain’t cheap.

Here’s the fees:

• An annual fee of $99

• A monthly fee of $6.95 (after the first year)

• A foreign transaction fee of 3%

And the APR is pretty high at 29.99%. So, it’s relatively easy to get your hands on it if you have bad credit, but this will come at a price.

Build credit

Credit One Bank® Platinum Visa® for Rebuilding Credit

3

Annual Fee

$75

Reward rate

1%

Intro offer

N/A

31 people chose this

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Fees/Restrictions

Why we like it

We know what you’re thinking—that’s a pretty high APR rate. But, the Credit One Visa has nice perks that other cards don’t—like 1% cash back on eligible purchases(such as internet and cell phone services or groceries).

To help you keep tabs on your credit, the Credit One Visa comes with an easy-to-use mobile app and gives you free online access to your credit score. And for that extra peace of mind, Credit One Visa offers zero fraud liability to protect against unauthorized charges, if your card is lost or stolen.

What to look out for

There’s no overlooking that steep annual fee. It starts at $75 and shoots up to $99 after the first year. Coupled with the high APR charge, you may want to question if the 1% cash-back is worth it.

Lower APR

Milestone® Mastercard

3

Annual Fee

$35 –$75

Reward rate

N/A

Intro offer

N/A

27 people chose this

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Fees/Restrictions

Why we like it

Yes, the APR is high—but for unsecured cards for bad credit, it’s still lower than the other rates on this list. We also like that the Milestone Mastercard doesn’t charge monthly fees, which helps you cut down on your total expenditure.

Like most unsecured cards, the Milestone Mastercard reports to the three major credit card bureaus, which can help you build up your credit history (and get a better card!). But it can backfire if you consistently make late payments or fail to pay, lowering your credit score.

It’s fairly easy to apply for—there’s a soft-inquiry pre-qualification process with no minimum credit score requirement.

What to look out for

The APR is relatively low, but watch out for the cash advance APR, which is comparatively higher. There’s also an annual fee which ranges from $35–$75, but goes up to $99 after the first year. And one more thing—you’ll get charged a 1% foreign transaction fee. Not much, but it’s there.

Unfortunately, there’s no rewards program or sign-up bonuses on this one.

No fees

Tomo credit card

3.8

Annual fee

$0

Rewards rate

N/A

Intro offer

N/A

42 people chose this

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Account Basics

Fees/Restrictions

Why we like it

The Tomo Credit Card has many unique features that set it apart from other unsecured cards, like the seven-day automatic payment (which helps to keep your credit utilization low and improve your credit score). Weekly payments also mean you won’t carry a balance and won’t need to pay APR rates. Best of all, Tomo doesn’t charge you any fees at all.

There are other perks, like discounts with DoorDash, HelloFresh, Lyft, and ShopRunner. The card is also easy to get hold of, as they don’t require a credit check or US citizenship.

What to look out for

There’s no credit check, but Tomo has its own data points like income amount and stability, credit card balance, phone number, and email address.

You’ll also need to link Tomo to an existing bank account, so they can automatically pay off your weekly charges. If you prefer monthly payments, this one might not be for you.

As with most credit cards, an unsecured one comes with a standard limit. You can make transactions and purchases on your credit card, adding to its balance.

Ideally, you’ll pay it off monthly to avoid any interest charges. If you reach the card limit, you can only make purchases if you pay down your balance.

This way, you’ll free up space for available credit, and won’t have to apply for a new line of credit (which can harm your credit score if overdone).

Many of our top unsecured credit cards are fairly easy to get your hands on if you have bad credit, but there are a few extra measures you can take to secure that approval—

Find the right credit card

Don’t skimp on research when finding the best lender for you. It doesn’t take much digging to discover the minimum credit score requirements for each credit card.

Finding this information beforehand can save you from application rejection if you don’t meet the requirements. Most of the time, you can find this information on the card issuer’s website or through external review pages.

Robert Leonard, VP of Growth and Podcast Host of Millennial Investing, also adds, “Individuals with bad credit are going to be offered credit cards with high-interest rates, which can be severely damaging to someone’s financial future if they don’t pay off the balance each month. Instead, search for cards that have high approval ratings and a lower limit. Buy a few things on it each month, gas, groceries, etc., and pay it off in full.”

No credit checks

If you’re worried that your credit score might affect your approval chances, there’s a simple solution. Apply for a credit card that doesn’t check your credit score. The Petal® 2 Visa® Credit Card does accept applications from those without a credit history.

But if you choose to go down this route,you’ll be checked for other factors—your income, employment status, and any ongoing debts or past delinquencies.

To find the right credit card for you, first check your credit score. Here’s a summary of credit score ranges provided by FICO.

• Excellent:800–850

• Very Good:740–799

• Good:670–739

• Fair:580–669

• Very Poor:300–579

You can calculate your credit with Credit Karma, which offers an easy tool to check your credit without any damage to your score.

All the lenders from our list will accept applications from those with poor credit scores(typically 300 and above). The higher your score, the more likely you’ll have lower fees or greater negotiating power to get a better deal.

Skimming through the terms and conditions is tempting. But pay attention to the fine print—you’re making a financial decision, not just updating Apple Podcasts. Skim and be skimmed.

Here are some features to take notice of—

APR

The Annual Percentage Rate is the annual interest rate on the balance of your credit card. For unsecured cards for bad credit, it tends to range between 15.99%–29.99%. It will vary from person to person, depending on the credit score, payment history, income, and other factors.

Take a look here for more details: What is a Good APR Rate?

Annual fee

This one is self-explanatory—this is what you’ll need to pay every year. Some cards won’t charge an annual fee, which will help decrease your overall rates. Other cards will charge up to $99, which falls at the higher end of the scale among our recommendations.

Watch out for other costs—foreign transaction fees, late payments, prepayment fees—as you’ll find that they tend to add up!

Credit limit

Put simply, this is the maximum amount of money you can spend on your credit card. Your limit comes with monthly payments, so you can pay back what you spend. Every purchase adds to your credit card balance, which is subtracted from your credit limit.

In 2020, the average credit card limit was $30,365 (source)—but a bad credit score means greater risk, as we said before. For unsecured credit cards targeted at those with poor credit, you’ll often find credit limits of $300. In rare cases (such as our Top Pick), this amount can be much larger, but you’ll likely have to prove your creditworthiness to qualify.

Grace period

A grace period gives you some leeway if you’re having trouble paying off your monthly balance. It’s essentially the time between the end of the billing cycle and your payment due date.

For unsecured cards targeted at poor credit, the grace period is typically between 20–25 days (when you won’t have to pay interest). But keep an eye on those dates, as you could be charged a late payment fee for going over and damaging your credit score.

Perks

One of the best things about getting a credit card is the various perks and rewards on offer. While unsecured credit cards for bad credit may have fewer compared to standard ones, they’re not impossible to find.

Some cards will provide cash-back rewards—such as the Credit One Visa for Rebuilding Credit, which offers a 1% cash back on some purchases. For the Petal® 2 Visa® Credit Card, it’s 1%–10% at select merchants.

Prequalification—or pre-approval—lets you gauge your chances before formally applying.

The process doesn’t guarantee approval, but it can point you in the right direction—toward cards that fit your needs and financial status. The bank will also use it to do a soft credit check on you, meaning it won’t harm your credit score.

Sending your application should be pretty straightforward. The best and most efficient way is to apply online(that’s when instant approval is closest to actually being instant).

You’ll need to provide your personal and financial information, but details can differ depending on the credit card you choose. For the most part, you’ll be asked to give your:

• Name and date of birth

• Place of residence

• Social Security number

• Source of income

Show off your financial responsibility and improve your credit by making timely payments every month—especially if your credit card reports to the three major credit card bureaus: Equifax®, Experian®, and TransUnion®.

Check out our free credit card payoff calculator for more,

The credit utilization ratio is just a fancy way to describe your total balance divided by the sum of your card’s credit limits. Keeping your credit utilization below 30%is a great way to improve your credit.

To keep your ratio low, try paying down your balances early, increasing your credit limit, and decreasing your spending.

Lenders want to see that you can successfully manage your credit card account. A good way to prove this is to have long-standing accounts. Use only a small amount of your credit limit to keep the lenders happy.