Flower shop owner holding a credit card next to a laptop computer in her flower shop. Concept: best unsecured credit cards.
Betsy Wise
By: betsy_wise
Read in 16 minutes

The Best Unsecured Credit Cards Of 2022

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.

Table of Contents
1. Best unsecured credit cards
2. Types of unsecured credit cards according to your credit score
3. How to get an unsecured credit card
4. What is an unsecured credit card?
5. How does an unsecured credit card work?
6. Benefits of unsecured credit cards
7. Should you choose a secured credit card or an unsecured credit card?
8. A better alternative to unsecured credit cards
8. How to make the most of unsecured credit cards
9. How to improve your credit score 
10. FAQs

Best Unsecured Credit Cards

When considering which one of the best-unsecured credit cards is most suitable for you, keep an eye out for added fees such as late and transfer fees.

Check each card issuer’s terms and conditions before applying, as they may change constantly.

Horizon Gold

Horizon Gold help consumers rebuild their credit. The Horizon Gold Card does not require a security deposit and has no credit check.

There are many options when seeking no credit check unsecured credit cards; this is one of the best of them.

  • Annual Fee: None.
  • Monthly fee: No monthly fee, $20 late fee, $25 insufficient funds fee, $3.50 store delivery fee, $2.00 residential delivery fee, $5.00 card validation fee.
  • No minimum credit score is required.
  • Other features include no employment check, reports to major credit bureaus, no credit check, and a $500 credit limit.
  • Cardholders can also enjoy free monthly credit scores, 24/7 online account access, and fraud protection.

Credit One Bank Visa

This card offers a wide variety of perks and benefits that make it an excellent choice for anyone looking to improve their credit score.

One of the best features of this card is the fact that it has a low annual fee. This means you won’t have to pay a lot yearly just to keep your card active.

The Credit One Bank Visa also offers a decent APR, which can help you save money on interest charges if you carry a balance from month to month.

  • Annual fee: $0 – $99.
  • Monthly fee: $5-$10 cash advance fee or 3-8% of the purchase, up to $39 late fee, up to $39 insufficient funds fee, $19 authorized card user fee.
  • Requires a fair credit score rating.
  • Other features: 1% cash back rewards on all purchases, Zero Fraud liability insurance, free online access to Experian score, and account reviews for credit line increases.

Milestone Mastercard

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.

This card has many features designed to help you manage your finances and stay on track.

  • Annual fee: $35-$99.
  • Monthly fee: No monthly or one-time fees.
  • Bad credit accepted.
  • Other features: Prequalification does not affect credit score, reports to 3 major credit bureaus, and $300+ credit limit.

First Access Visa

First Access Visa is an unsecured credit card for building credit. 

This credit card doesn’t require a deposit and has a reasonable APR. You can also get up to $1,000 in credit, which can help you make some headway in establishing your credit history.

  • Annual fee: $75 first year, $48 thereafter.
  • Monthly fee: $89 – one-time program fee. No monthly fee first year and $6.25 for the second year and beyond.
  • Bad credit accepted.
  • Online results for approval in as little as 60 seconds, reports to 3 credit reporting agencies, and 24/7 customer service.

Petal Visa

Petal Visa is one of the easiest unsecured credit cards to get.

There is no annual fee, and you can choose your own credit limit. Petal reports your payment history to the major credit bureaus, so using Petal responsibly can help build your credit.

You’ll also get cash back on purchases and no foreign transaction fees.

  • Annual Fee: None
  • Monthly fee: None
  • You can apply with no credit history
  • Credit limits from $500 – $10,000, 1% cash back on eligible purchases, 1.5% after 1 year, and cash flow technology help applicants without credit history get approved.

Capital One Platinum

The Capital One Platinum credit is an unsecured card with no annual fee. It offers a 0% APR on purchases and future balance transfers for the first 15 months

You’ll also get access to Capital One’s Platinum Credit Portal, which offers exclusive discounts and perks. Plus, you can earn rewards on every purchase with the Capital One Rewards program.

  • Annual Fee: None.
  • Monthly fee: No monthly fee, 3% cash advance/ $10 minimum up to $39 late fee.
  • You’ll require a limited credit history.
  • Access an increased credit line after making timely payments for 5 months, choose your monthly due date, and build credit as the lender reports your payments to major credit bureaus.

Citi Double Cash Card

The Citi Double Cash Card offers an attractive way to earn cash back on your purchases. With no annual fee and a relatively low APR, this card is a great option for those looking to save money on interest charges.

You’ll earn 2% cash back on all of your purchases, which you can redeem for statement credits or deposit into a savings account.

There is no limit to the amount of cash back you can earn, and you’ll get your rewards automatically each month. This is one of the best credit cards without deposits on our list.

  • Annual Fee: None
  • Monthly fee: No monthly fee. 3% foreign transaction fee, 5% cash advance fee/ $10 minimum up to $39 late fee, 3% balance transfer fee/ $5 minimum up to $39 returned payment fee
  • You’ll require a good credit rating (the average approval score is 740+)
  • 0% intro APR on balance transfers for the first 18 months, 2% cash back on purchases (1% when you buy and 1% to make payments for those purchases)

American Express Cash Magnet

The American Express Cash Magnet is an unsecured credit card for fair credit.

This card offers a 0% APR on purchases and balance transfers for the first 15 months and a $150 cash back bonus after spending $1,000 in the first 3 months.

You’ll also earn 1.5 % cash back on all purchases, with no limit to how much you can earn. This card has no annual fee, making it a great choice for those who want to avoid paying interest on their balances.

  • Annual fee: $0 – $99
  • Monthly fee: No monthly fee. Cash advance – $0 first year-5% thereafter foreign transaction fee 1% late and returned payment fees up to $38.
  • You’ll have fair credit, and previous bankruptcy it’s okay.
  • Prequalification doesn’t impact credit score, auto rental insurance, roadside assistance, or $0 fraud liability.

Bank of America Cash Reward

The Bank of America Cash Rewards Credit Card is an unsecured credit card that offers cash back on everyday purchases.

There is no annual fee, and the APR is competitive. You can earn up to 3% cash back on gas and 2% at grocery stores and wholesale clubs, plus 1% on all other purchases.

The sign-up bonus is generous, and you can get an additional 10% cash back if you’re a Bank of America customer.

You can redeem your rewards anytime, with no limits or expiration dates.

  • Annual Fee: None
  • Monthly fee: No monthly fee. Cash advance and balance transfer 3-5% of transaction/$10 minimum, foreign transaction fee 3%, up to $39 late payment, up to $28 returned payment fee.
  • You’ll have an excellent credit score.
  • 0% intro APR first 15 months for purchases and balance transfers made in the first 60 days, $200 cash rewards bonus when making $1,000 in purchases in 90 days, 3% cash back on select purchases, 1-2% on other purchases.

Types of Unsecured Credit Cards According to Your Credit Score

There are four main types of unsecured credit cards: good credit, excellent credit, fair credit, and poor credit.

Good and excellent credit scores

These cards require a good to excellent credit score for approval.

In general, you’ll need a score of 700 or higher to qualify. The best unsecured for good to excellent credit scores offer low-interest rates, generous rewards programs, and 0% introductory APRs.

Fair credit scores

These cards are generally defined as a score of 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.

Poor credit score

Poor credit score it’s between 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.

No credit history

If you don’t have a credit history, you may still be able to qualify for an unsecured credit card. Since these cards also can help you for building credit.

The best-unsecured credit cards for people with no credit history offer low-interest rates, small credit limits, and 0% introductory APRs.

How to Get an Unsecured Credit Card

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 an unsecured card, but you’ll likely have to pay a higher interest rate.

Once you know your credit score, you can start shopping for an unsecured credit card.

There are many different options available, so it’s important to compare several cards before you choose one. You may want to consider the annual fee, the interest rate, and the credit limit.

Once you’ve found a few unsecured credit cards that you’re interested in, it’s time to apply.

When you apply, issuers will likely pull your credit report and score. They’ll use this information to determine whether or not you’re a good candidate for their card.

If the credit card companies approve the card, you’ll need to use it responsibly immediately.

This means making your payments on time and keeping your balances low.

Using your unsecured credit card responsibly will help you improve credit scores over time and make it easier to qualify for other types of credit in the future.

Unsecured Credit Card Application Tips

  • Make sure you understand the requirements.
  • Be aware of the potential for fraud. Unsecured credit cards are 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, fill out an online application or visit a branch to apply in person.

What Is an Unsecured Credit Card?

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 of unsecured credit cards is access to cashback programs, promotions, and automatic reviews to qualify for credit line increases.

Learn more by reading What Are Unsecured Credit Cards?

Apply for a startup business loan today

What is a secured credit card?

A secured card is a type of credit card that requires a security deposit in order to open and use the account.

The deposit serves as collateral for the credit card issuer, typically equal to the credit limit on the account. If you deposit $500, you will have a $500 credit limit.

Secured cards are a good option for people with bad or no credit history who are looking to build their credit.

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, but it is typically higher than the rate for secured credit cards.

They may also charge fees for using your unsecured credit card. These include annual, late payments, and cash advance fees.

Be sure to review the terms and conditions of your card before you use it to avoid any unwanted charges.

Unsecured credit cards 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.

Why 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 credit or no credit history.

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.

Benefits of Unsecured Credit Cards

Unsecured credit cards are a great option for anyone who wants to improve their financial situation. Here are some of their 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 credit limit on an unsecured credit card than you would on a secured credit card.

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 unsecured credit cards 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.

An unsecured credit card can be a great option if you want to improve your financial situation.

With no collateral required and the ability to use it anywhere, this type of credit card can help you reach your financial goals.

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

An unsecured credit card does not require a security deposit.

A secured credit card is a good option for people with bad or no credit history because it allows them to build up their credit score by making on-time payments.

An unsecured credit card is a better option for people with good or excellent credit history because the lender will likely approve them for a higher credit limit and won’t have to pay a security deposit.

Both secured and unsecured credit cards come with annual fees, interest rates, and other charges.

It’s important to read the terms and conditions of each card before applying to make sure you understand the costs.

A Better Alternative to Unsecured Credit Cards

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.

Our loans are flexible and straightforward.

Finally, you can qualify for a new loan after 12 months months.

To put it another way, our loans have benefits unsecured credit cards don’t offer.

Apply for a startup business loan today

How to Make the Most of Unsecured Credit Cards

Unsecured credit cards can be a great way to improve your credit score and rebuild your credit history.

However, it’s important to use them responsibly to avoid falling into debt.

Here are a few tips on 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.

How to Improve Your Credit Score

Credit bureaus calculate your credit score based on your credit history.

This includes things like whether you have made your payments on time, how much debt you have, and your credit utilization ratio.

Credit scoring models also take into account other factors like public records, your employment history, and your income.

They use all of this information to give you a three-digit number that lenders use to assess your creditworthiness.

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.

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.

What credit score do you need for an unsecured credit card?

You generally need a credit score of at least 640 to qualify for unsecured credit cards.

Is it good to have an unsecured credit card?

This is 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 unsecured debt?

Yes. A credit card is an unsecured form of debt because there is no physical asset — such as a home or car — that the lender can seize if you don’t make your payments.

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.

What is an unsecured line of credit?

It is a loan that does not require the borrower to provide any collateral. This type of credit line is typically used for short-term borrowing needs, such as for unexpected expenses or emergencies.

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