Getting an approval for a credit card with bad credit can be pretty difficult, especially if you're searching for one with no security deposit required. Some credit card issuers do have unsecured credit cards designed mainly for people who have very bad credit. The steps that follow will give you all details on how to apply and find such cards, thus ensuring that the information provided is reliable and verifiable.
Understand Unsecured Credit Cards for Bad Credit In contrast to secured cards, there is no security deposit required to open an unsecured credit card. They are much more difficult to get approved for if you have bad credit; still, there are some issuers out there who focus on serving very low credit scorers. These cards usually come with higher interest rates and fees; however, they also can be used as a stepping stone in rebuilding your credit.
Examples of No-Deposit Credit Cards for Bad Credit
Credit One Bank Platinum Visa
Features: Get 1% cash back on eligible purchases, a customized due date, and regular credit line reviews for possible increases.
Fees: $0-$99 Annual Fee, based on creditworthiness.
Requirements: Bad to fair credit requested.
Indigo Platinum Mastercard
Features: You can pre-qualify without a ding to your credit score; it reports to all three major credit bureaus.
Fees: No annual fee to $99, depending on your credit profile. Requirements: People with bad credit.
Milestone Gold Mastercard
Features: You can check if you pre-qualify without affecting your credit score; it reports to all three major credit bureaus.
Fees: The annual fee is $35-$99, depending on your creditworthiness.
Requirements: People with less-than-perfect credit.
Check Your Credit Score
First, get your credit report at AnnualCreditReport.com to learn about your credit standing and know the cards for which you'll most likely qualify.
Pre-Qualification
To get an idea of whether you will get approved without hurting your credit score, check out the issuers' websites for their pre-qualification tools for their cards.
Examples:
Credit One Bank Pre-Qualification
Indigo Card Pre-Qualification
Milestone Card Pre-Qualification
Compare Card Features and Fees
Compare rewards, fees, and interest rates of cards for which you are pre-qualified. Ensure that it's a good match according to your financial situation and priorities.
Gather the information needed, usually Social Security number, employment information, income, and housing expenses.
Apply Now
You may apply online through the website of the issuer. Ensure that all the information provided is accurate before submitting it for approval.
The application, after being submitted, undergoes a review by the issuer. This might take from a few minutes to some days to process. You will be asked to receive an e-mail or even informed via post-mail regarding the decision.
Once activated, use your card responsibly and keep your credit score in check with on-time bill payments and low credit utilization.
You can still apply for an unsecured credit card with bad credit and no deposit if you really practice responsible finance behavior and do the needed research. Be aware of your credit score, pre-qualify yourself from offers, compare features of cards, and choose the one that will help you rebuild your credit best. You should always use your credit card wisely to lay a path for better financial opportunities in the future.