The Best Unsecured Credit Cards Of 2023

Camino Financial10 Jan 2024
The Best Unsecured Credit Cards Of 2023

An unsecured credit card is a handy financial tool to have in your wallet when used responsibly by not overspending and paying them off monthly.

We've put together a list of the best credit cards to consider. Also, you'll find out about an alternative to improve your business's financial outlook and reap the rewards of additional benefits.

Best Unsecured Credit Cards

Petal 2 Credit Card

Petal 2 Credit Card

Best for high credit limits

Petal Visa is one of the easiest unsecured credit cards to get. It is a great option for people who are looking to build their credit history. It is a no-fee card with no security deposit required. The card also offers a variety of rewards and benefits that can help you save money on your everyday purchases.
  • Intro APR: N/A
  • Regular APR: 18.24% to 32.24%1 (variable)
  • Annual fee: $0
  • Monthly fee: $0
  • One-Time Fees: None
  • Min credit score: N/A
  • Other features:
    • 1% to 1.5% cash back on eligible purchases
    • Credit limits from $500 to $10,000
    • reports your payment history to the major credit bureaus

Capital One QuicksilverOne Cash Rewards Credit Card

Capital One QuicksilverOne Cash Rewards Credit Card

Best for earning cashback

The Capital One QuicksilverOne Cash Rewards Credit Card is a good option for people with fair credit who are looking for a simple, no-frills cash-back card.
  • Intro APR: N/A
  • Regular APR: 30.49% (variable)
  • Annual fee: $39
  • Monthly fee: $0
  • One-Time Fees: $0
  • Min credit score: 600
  • Other features:
    • unlimited 1.5% cash back on all purchases
    • 5% cash back on hotels and rental cars booked through Capital One Travel
    • they automatically consider you for a higher credit line in 6 months

Credit One Bank Platinum Visa for Rebuilding Credit

Credit One Bank Platinum Visa for Rebuilding Credit

Best for rebuilding credit

This card offers a wide variety of perks and benefits that make it an excellent choice for anyone looking to improve their credit score. It is a decent option for people with bad credit who are looking for a credit card with no security deposit with no security deposit required. However, it is important to be aware of the high annual fee and APR before applying for this card.
  • Intro APR: N/A
  • Regular APR: 28.99% (variable)
  • Annual fee: $75 during the first year, $99 after
  • Monthly fee: $0
  • One-Time Fees: $0
  • Min credit score: Bad to fair credit score (300 to 670)
  • Other features:
    • 1% cash back on eligible purchases

Milestone Mastercard

Milestone Mastercard

Best for short term use

Milestone Mastercard is an unsecured credit card for bad credit. With responsible use, you can improve your credit score and eventually qualify for a traditional credit card. The Milestone Mastercard 301 has many features designed to help you manage your finances and stay on track.
  • Intro APR: N/A
  • Regular APR: 35.9%
  • Annual fee: $175 during the first year, $49 after
  • Monthly fee: $0 during the first year, $12.50 after
  • One-Time Fees: $0
  • Min credit score: 500
  • Other features:
    • a $700 credit limit

Mission Lane Visa Credit Card

Mission Lane Visa Credit Card

Best for rebuilding credit

The Milestone Mastercard is a good option for people with bad or limited credit who are looking to build or rebuild their credit. It is a relatively affordable card with no late payment fees or foreign transaction fees. However, it is important to note that the card has a high APR and a low limit.
  • Intro APR: N/A
  • Regular APR: 26.99% to 29.99% (variable)
  • Annual fee: $0 to $59
  • Monthly fee: $0
  • One-Time Fees: $0
  • Min credit score: Bad to fair score (300 to 670)
  • Other features:
    • Reports to the three main credit bureaus

First Access Visa Card

First Access Visa Card

Best for bad credit scores

the First Access Visa Card is a good option for people with bad credit who are looking to build their credit. You can also get up to $300 in credit, which can help you make some headway in establishing better finances. However, it is important to be aware of the high fees associated with the card before you apply.
  • Intro APR: N/A
  • Regular APR: 35.99% (variable)
  • Annual fee: $75 1st yr, $48 after
  • Monthly fee: $0 1st year, $8.25 after
  • One-Time Fees: $95 program fee to open your account
  • Min credit score: Bad to fair score (300 to 670)
  • Other features:
    • a credit line of at least $300
    • 1% cash back rewards on payments made to your First Access Credit Card

Citi Double Cash Card

Citi Double Cash Card

Best for rewards

The Citi Double Cash Card offers an attractive way to earn cash back on your purchases. With no annual fee, this card is a great option for those looking to save money on fee charges. There is no limit to the amount of cash back you can earn, and you'll get your rewards automatically each month.
  • Intro APR: 0% for 18 months
  • Regular APR: 19.24% to 29.24% (variable)
  • Annual fee: $0
  • Monthly fee: 1.72% (for Citi Flex Pay Plans subject to a Plan Fee)
  • One-Time Fees: $0
  • Min credit score: 580
  • Other features:
    • 1 % unlimited cashback
    • 1% additional cashback as you pay for the purchases
    • You earn the cashback in the form of ThankYou Points

Avant Credit Card

Avant Credit Card

Best for limited credit histories

The Avant Credit Card is a good option for people with fair credit who are looking to build their credit scores. It is important to note the high APR and annual fee, so make sure you can afford the payments before you apply.
  • Intro APR: N/A
  • Regular APR: 30.24% to 35.24% Variable
  • Annual fee: $0 to $59
  • Monthly fee: $0
  • One-Time Fees: $0
  • Min credit score: 300
  • Other features:
    • credit limit of $300
    • reports to the three major credit bureaus monthly

Discover it Student Cash Back

Discover it Student Cash Back

Best for students

If you're a student looking for a credit card that can help you earn cash back and build your credit history, the Discover it Student Cash Back is a great option to consider.
  • Intro APR: 0% intro APR for 6
  • Regular APR: 18.24% to 27.24% variable
  • Annual fee: $0
  • Monthly fee: $0
  • One-Time Fees: $0
  • Min credit score: N/A
  • Other features:
    • 5% cash back on specific stores, 1% cash back on all other purchases

Ink Business Unlimited Credit Card

Ink Business Unlimited Credit Card

Best for businesses

The Ink Business Unlimited Credit Card is a great option for small businesses that want a no-annual-fee card with unlimited cash-back rewards. However, if you're looking for a card with higher reward rates or more redemption options, you may want to consider a different card.
  • Intro APR: 0% for 12 months
  • Regular APR: 18.49% to 24.49% variable
  • Annual fee: $0
  • Monthly fee: 0% for 12 months, 1.72% of the amount after
  • One-Time Fees: $0
  • Min credit score: 670
  • Other features:
    • Unlimited 1.5% cash back
    • Employee cards at no additional cost
    • 5% cash back on Lyft rides

*Terms may change without prior notice. **Conditions may apply to rewards and promotions.

Instead Of Applying For A Business Credit Card, Apply For A Business Loan!

How To Choose An Unsecured Credit Card

  1. Know Your Credit Score. If you have a good credit score, you'll likely be able to qualify for an unsecured card with a decent interest rate. However, if it's poor, you may still be able to get one, but you'll likely have to pay a higher interest rate.
  2. Compare The Fees. Credit cards can have different types of fees, like:
    • annual fee
    • late payment fee
    • foreign transaction fee
  3. Analyze the Rewards and Benefits. Are you a traveler? Or perhaps a foodie? Different cards come with different rewards – from air miles to dining discounts. Consider what aligns with your lifestyle, and see if there's a card that makes every purchase a bit more rewarding.
  4. Compare Credit Card Terms and Features. Delve deep into the fine print. What's the APR? Are there any promotional rates? Is there a grace period? The more you know, the better.
  5. Analyze How You Plan to Repay Your Credit Card Balance. Can you comfortably pay off the balance every month, or will you be carrying a balance? If it's the latter, focus on cards with low APRs.
Remember, understanding your own spending and repayment habits can save you from unexpected pitfalls.

How To Get An Unsecured Credit Card

Meet the Most Common Requirements

  1. Credit score check. Higher scores increase approval chances. Card issuers usually want a credit score of 580 to 669 or higher.
  2. A positive credit history, which indicates responsible credit management.
  3. Proof of income. Card issuers need assurance you can pay off balances, using details like annual salary or recent tax returns.
  4. Age restrictions. Typically, applicants need to be at least 18 to apply.
  5. Address & contact information. Essential for statements and communication.
  6. No recent bankruptcies. Recent bankruptcy can hinder approval chances, but over time, opportunities arise as credit rebuilds.
  7. A valid identification, like a driver's license or passport.
  8. No recent bankruptcies, as they can deter issuers.
Keep in mind that this is a general overview, and specifics can vary based on the issuer and your location.

How To Apply

  1. Assess your credit score. Before anything else, get a grip on where you stand. Check your credit score through online platforms like Credit Karma or Experian. If your score's on the lower side, don't fret. There are unsecured cards specifically designed for folks rebuilding their credit.
  2. Research and comparison. Dive into different credit card offers available. Look for cards that match your spending habits and lifestyle. You may want to consider the annual fee, the interest rate, and the credit limit.
  3. Read the fine print. Look for fees, interest rates, and any promotional offers. Remember, lower interest rates are always better. But be wary of cards that offer 0% introductory rates, which spike after a few months.
  4. Fill out the application. They'll ask for personal details like your name, address, and Social Security number. Make sure the website's secure before sharing this info!
  5. Wait for a response. Most online applications offer instant decisions. If approved, congrats! If not, they'll typically let you know why.
  6. Activate your card. Once you receive your card, there's usually an activation process. This might be a phone call or online confirmation.

Application Tips

  • Make sure you understand the requirements.
  • Be aware of the potential for fraud. Credit cards with no security depositare more vulnerable to fraud than secured cards because there's no deposit to protect the issuer if you don't make your payments.
  • Make sure you only apply for cards that come with strong anti-fraud protections.
  • Look for cards with low-interest rates, no annual fees, and rewards programs that fit your spending habits.
  • Once you've found the right card, prequalify by filling out an application online or at a branch.

What Are Unsecured Credit Cards?

With this type of credit card, you are not required to offer collateral in the form of a security deposit to qualify for the card; in other words, to "secure" it. Instead, the card provider decides whether to issue the credit card based on your credit score, your ability to pay, and other factors. Unsecured credit cards appeal to business owners because having one provides access to needed cash without carrying risks. Furthermore, if your credit score is bad or fair, you can use the card to strengthen it. That's because most card issuers report your account history to at least one or all three major credit bureaus. Another key feature is their access to cashback programs, promotions, and automatic reviews to qualify for credit line increases.
#DidYouKnow There are also unsecured loans available.

How Does An Unsecured Credit Card Work?

When you purchase unsecured credit cards, you borrow money from the card issuer. The issuer then bills you for the borrowed amount plus any applicable interest and fees. You can choose to pay off your balance in full each month, or you can carry a balance and make payments over time. The lender will charge interest on the outstanding balance if you carry a balance. The interest rate will vary depending on the card issuer and the prime rate, but it is typically higher than the rate for secured credit cards. They may also charge fees for using your credit card. These include annual, late payments, and cash advance fees. They can be useful for building credit, but they also come with some risks. If you are not careful, you could have a high-interest rate and hefty fees.

Who Are Unsecured Credit Cards For?

Unsecured credit cards are ideal for individuals:
  • Who don't want to commit to a deposit upfront.
  • With good credit scores showcasing financial responsibility.
  • Seeking higher credit limits for increased spending flexibility.
  • Eyeing rewards and perks like travel benefits and cashback.
However, they demand high financial responsibility, as missed payments can lead to penalties and credit score damage. In essence, if you have good creditworthiness and want flexibility without deposits, unsecured cards might be your fit. If not, other financial tools might suit you better.

Pros And Cons Of Unsecured Credit Cards

Benefits:
  • You can use it to rebuild your credit. If you have bad credit, an unsecured credit card can help you rebuild your credit. You can improve your credit score by using the card responsibly and paying on time.
  • You don't need collateral. With easy unsecured credit cards, you don't need to put down any collateral, such as a deposit or a home equity line of credit.
  • You can get a higher credit limit. If you have good credit, you may be able to qualify for a higher limit. This can give you more flexibility when it comes to making purchases.
  • You can avoid fees. Some secured credit cards come with annual fees, but credit cards with no security deposit typically don't have these fees. This can save you money over time.
  • You can use it anywhere. Unlike a secured credit card, which you can only use at specific stores or websites, you can use an unsecured credit card anywhere that accepts credit cards. This makes it more convenient to use.
Disadvantages:
  • Higher interest rates. Unsecured credit cards, especially those catering to individuals with not-so-perfect credit scores, can sometimes come with higher interest rates. Remember, there's no deposit to serve as a safety net for the issuer. Hence, they're taking on more risk.
  • Potential for higher fees. Credit card issuers might compensate for the lack of deposit by charging various fees. Annual fees, maintenance fees, or even higher late payment fees can all add up.
  • Easier to overspend. Since unsecured credit cards don't require an initial deposit that determines your limit, there might be a temptation to overspend.
  • Tougher approval for low credit scores. If your credit history has a few blemishes, getting approved for an unsecured card might be a challenge.
  • Lesser features for those with bad credit. If your credit isn't in the best shape, you might find that unsecured cards available to you lack some of the bells and whistles. Reward points, cashback offers, or travel perks might be sparse or non-existent.

Types Of Unsecured Credit Cards

Depending On Your Credit Score

  • For good and excellent credit scores (700 or higher). The best unsecured for good to excellent credit scores offer low interest rates, generous rewards programs, and 0% introductory APRs.
  • For fair credit scores (640 to 699). If you have fair credit, you may be able to qualify for an unsecured credit card with a lower interest rate and a smaller rewards program than cards designed for people with excellent credit.
  • For poor credit scores (300 to 639). If you have poor credit, you may be able to qualify for an unsecured credit card with a higher interest rate and a smaller credit limit than other cards.
  • For applicants with no credit history. The best-unsecured credit cards for people with no credit scores offer low-interest rates, small credit limits, and 0% introductory APRs. They can also help you build credit.

Depending On Their Perks

  • Cashback cards. Every time you swipe, a small percentage of your spending bounces back into your pocket. Ideal for folks who love the idea of earning while spending.
  • Travel rewards cards. They convert your everyday spending into miles or points. You can redeem these for flights, hotel stays, or even travel accessories.
  • Zero annual fee cards. No hefty fees, just pure, unadulterated credit. Great for those who want a straightforward credit card experience without the added cost.
  • Retail and shopping cards. Some cards offer exclusive discounts, early sale access, or even freebies from your favorite brands.
  • Dining and entertainment cards. Some credit cards cater specifically to your tastes, offering discounts at restaurants or cinemas.

What Is The Difference Between Unsecured And Secured Credit Cards?

You back a secured credit card with a deposit. Think of this deposit as a safety net or a kind of 'insurance' for the card issuer. If you fail to pay your bill, they have the deposit to fall back on. It's a security for them, hence the name. On the other hand, an unsecured credit card offers a credit line without any collateral. Here, your creditworthiness plays a bigger role. It's a leap of faith on the part of the issuer, as they're trusting you'll repay without having a safety deposit to hold onto.

Should You Choose a Secured Credit Card or an Unsecured Credit Card?

A secured card is a good option for people with bad credit scores because it allows them to build up their credit scores by making on-time payments. An unsecured card is a better option for people with good or excellent credit scores because the lender will likely approve them for a higher credit limit and won't have to pay a refundable security deposit.

Quick Guide On How To Use Your Credit Card

How To Make The Most Of Unsecured Credit Cards

  • Use them wisely. Only charge what you can afford to pay off each month, and always make your payments on time.
  • Keep your balances low. High balances can hurt your credit score, so keeping them as low as possible is important.
  • Watch out for fees. Many unsecured credit cards come with annual or monthly fees, so be sure to read the fine print before signing up.
  • Choose the right card. Many different credit cards are available, so compare offers before choosing one.
  • Use your card regularly. Using your credit card regularly can help improve your credit score.
  • Paying your bill on time every month. Every time you delay a payment, it can negatively impact your credit score. Plus, you will have to pay unnecessary late fees.
  • Avoid multiple credit applications in a short period. Applying for multiple credit cards within a short span can send the wrong signal to lenders. It might make you look desperate for credit or, even worse, like a potential risk.
  • Don't use too much of your credit limit. Using a high percentage of your available credit can raise red flags and impact your credit utilization ratio, a big factor in determining your credit score. Aim to use no more than 30% of your limit.

How To Improve Your Credit Score With A Credit Card

There are a few things you can do to improve your credit score.
  • Make sure you make all of your payments on time.
  • Try to keep your balances low and your credit utilization ratio below 30%.
  • Avoid opening new lines of credit unnecessarily.
  • Check your credit report regularly for errors and dispute any that you find.
By following these steps, you can improve your credit score and make yourself a more attractive borrowing prospect to lenders. If you don't want to apply for unsecured credit cards, you can do it for a business loan with lenient requirements if you want to get funds for your business. Business loans typically have lower interest rates than unsecured credit cards. This is because lenders see business loans as less of a risk, so they are willing to offer lower rates.
Learn how personal and business credit work.

A Better Alternative For Small Business Owners

If you prefer maintaining control over your assets, you can choose unsecured over secured funding, which requires collateral for financial assistance. At Camino Financial, our unsecured business loans do not require collateral or a cash deposit.
Other benefits include fixed monthly payments and fixed interest rates.
In short, our loans are flexible and straightforward. To put it another way, our loans have benefits unsecured credit cards don't offer. Apply For A Business Loan!

FAQs

What is the easiest unsecured card to get?

The easiest unsecured card to get is typically a store credit card. You can usually get them without having to go through a credit check, and they often don’t have annual fees. However, the interest rates on store credit cards can be quite high, so it’s important to only use them for emergencies and to pay off the balance in full each month.

Is it a good idea to apply for an unsecured credit card?

They are a great way to build your credit history and score, which can help you get approved for a mortgage or car loan in the future. However, it's important to remember that it is like a loan, and you should only spend what you can afford to pay back each month. If you start racking up debt on your unsecured credit card, it could damage your credit score and make it harder to get approved for future loans.

Are credit cards secured or unsecured?

Credit cards can be either secured or unsecured, but most credit cards are unsecured. A secured credit card is a type of credit card backed by a savings account or certificate of deposit. The cardholder deposits a certain amount of money into the savings account or CD, which becomes the card's credit limit. If the cardholder does not make payments on the debt, the issuer can take money from the savings account to cover it.

Should I get a credit card with no deposit?

A no-deposit credit card can help you build up your credit score if you have bad or no credit. Additionally, no-deposit cards can be helpful if you're trying to save money and avoid interest charges. Some unsecured cards offer perks and rewards that can be valuable, such as cashback or travel points. If any of these reasons resonate with you, then a no-deposit credit card could be a good option for you.

How is a secured card different from a prepaid card?

Here's a quick breakdown:
  • Secured Card: This is a type of credit card. You put down a deposit which typically becomes your credit limit. As you use the card and pay off your balance, you can improve your credit score. If you manage it responsibly, it can help improve your credit score.
  • Prepaid Card: It's more like a debit card. You load money onto the card, and then you can spend up to that amount. It doesn't help in building credit scores.

What are the different types of credit card rewards?

Here's a brief overview:
  • Cash Back: Earn a percentage of your purchases back as cash. Simple and straightforward.
  • Points: Accumulate points for every purchase. You can redeem them for a range of things, like merchandise, travel, or even converted to cash in some cases.
  • Miles: Perfect for frequent travelers. Earn miles for your purchases which you can redeem for air travel, hotel stays, and more.
  • Special Category Rewards: Some cards offer enhanced rewards for specific categories, like dining, gas, or groceries.
 
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