For those with little to no credit, getting approved for your first credit card can sometimes be difficult. But for those who already have damaged credit, the process is potentially even more strewn with difficulties.
But even if you can’t get a “regular” credit card, that doesn’t mean you can’t get a “good” credit card, despite having had some financial turbulence in the past that left a mark on your credit score.
The fact is, there are many companies out there competing for the business of the 30% or so of American adults who have a “bad” or “poor” credit rating. And with help from high-powered search engines and credit card analysts like us, you can find a bad credit credit card that’s right for you.
Are There Credit Cards For Bad Credit With No Deposit Required?
One of the biggest reasons why people with bad credit who want to get a credit card hesitate is that so many of them are secured cards (requiring a deposit, often in the hundreds of dollars range, for approval).
But if you’re wondering if there are credit cards for bad credit with no deposit needed, the answer is a resounding “Yes!” There are many such cards, and we at Bonsai Finance can help you find and apply for the one that best fits your needs.
For some applicants, a deposit is the number one turn away. You might be willing to have a higher APR, for example (especially if you plan to always pay your bill on time and avoid interest anyway), in exchange for the lack of deposit requirement.
On the other hand, someone with below average but not totally dismal credit can often get approved for bad credit credit cards NO DEPOSIT NEEDED and have a reasonably low APR and maybe not even an annual fee. It all depends on your exact situation, and we at Bonsai Finance can assess that situation and find you your absolute best possible overall credit card offer.
How Can Card Companies Afford To Offer Bad Credit Credit Cards NO DEPOSIT NEEDED?
Credit card companies are obviously in business to make a profit, like every other type of business. And you might wonder why they allow the risk of an unsecured credit card to someone with bad credit.
Well, to let you see the equation from the other side, here are some answers to that question:
- The bad credit market is simply too big to ignore. And if one company doesn’t win a customer with below average credit, its competitors probably will.
- Many people with bad credit pay their bills on time and have a steady income. They simply went through some financial difficulties in the past, perhaps years ago.
- Usually, there’s a higher APR or other factors that mitigate any risk from offering bad credit credit cards NO DEPOSIT NEEDED.
- Many people who begin with a bad credit card eventually work their way up to a regular card through regular on-time payments. The motivation for people with bad credit cards to pay on time is high, and if you give them a helping hand up, they are likely to stay with your company later when they have good credit again.
- Card companies have to have the responsibility of holding your money and then of later crediting it back to you if they require a deposit. That’s extra office work, frankly, and greater complexity. Some companies like to keep things more simple and streamlined rather than take deposits.
So, as you can see, you are still a consumer whose business credit card companies are competing for, even if your credit score isn’t ideal.
The Pros And Cons Of Secured Bad Credit Credit Cards
At this point, you may be wondering why anyone would want to ever get a secured card if unsecured cards are available. But in reality, there are pros and cons of both types of bad credit credit cards, and you have to look at the overall offer before making a decision.
But even apart from other factors in the overall deal that will play into your decision, there are pros and cons of deposit and non-deposit cards in themselves.
On the pro side, some people like the idea that they are “really” in effect just borrowing against their own deposit money instead of going into “actual” debt while using their credit card. That would depend, of course, on whether your credit limit and deposit amount are the same or not.
Plus, you eventually do get your deposit back, which is a bit like getting a cash windfall on your tax return at the end of the year. Everyone likes that part, of course.
But on the con side of things, deposits tie up hundreds of dollars of your money, maybe at a time when you can’t afford to have that money tied up. And you won’t make any interest, of course, on that money while the card company is holding it. Opting for credit cards for bad credit with no deposit required eliminates these problems.
Finding The Best NO-DEPOSIT Bad Credit Credit Card
At Bonsai Finance, we not only can help find you a no-deposit bad credit credit card offer that you will be approved for, but we can help you find the very best offer available.
Searching the Internet one website at a time after a Google search would be urealistically tedious and inefficient. There are too many websites, too many card companies, too many offers, and too much fine print for you to be expected to read it all.
We at Bonsai Finance have powerful search engines that instantly scan hundreds of credit card companies and their various offers based on your stated search criteria. And we are staffed by industry experts who are already familiar with what is or is not a fair deal and with which companies are or are not reputable.
Plus, we can correlate your search for a bad credit credit card that’s unsecured with other important factors such as the following:
- Annual fee. An annual fee is second only to a deposit requirement as a turn away, to many, from a credit card offer. We can find you an offer with no annual fee or with as low an annual fee as possible. We also can advise you on which companies often waive the annual fee, upon request, for various reasons.
- Credit limit. Often, a credit limit might be lower on an unsecured bad credit card, but not always – it all depends on the company and on your specific situation. In any event, you need a card with at least sufficient credit allowance and that can get a limit increase rapidly with on-time payments.
- Interest rate. You may plan on avoiding a rolling balance and thus avoiding to have to pay any interest. But, unforeseen circumstances might prevent that ideal from always being met. So obviously, you want an unsecured card with as low an APR as possible.
- Late fees, cash withdrawal fees, and other fees. Cards that have numerous and high fees also suffer by comparison to those that do not. Again, you might manage to avoid all of these types of “miscellaneous” fees, but it’s still a factor to consider in making your decision.
- Perks. The presence of perks, like cash back, travel points, no foreign transaction fees, and the like can also be a major differentiating factor between otherwise similar credit card offers.
How Can A Bad Credit Credit Card Help Me?
The need for a credit card in our modern “semi-cashless” society is nearly universal. Anyone who needs to pay bills online or make online purchases or shop at gas stations, grocery stores, and elsewhere without carrying a lot of cash around with them, will need some sort of card.
Credit cards for bad credit with no deposit required allow you to get access to a line of credit with tying up your savings as deposit-money.
They also give you the opportunity to see your credit limit rise and your APR and fees shrink over time, if you use the card responsibly.
And last (but certainly not least!), a credit card gives you the chance to improve your credit score over time as you continue to make all your payments on time. Unless you borrow and repay something, there’s really nothing much to make your credit score go up. But a bad credit credit card can be an important tool in “credit rehabilitation.”
Why Choose Bonsai Finance?
Credit cards for bad credit with NO DEPOSIT REQUIREMENT are out there, but not always easy to find and conveniently compare. Bonsai makes that process simple, fast, and almost certain to end in approval.
We have deep experience in finding our clients the credit cards for bad credit with no deposit that best fit their needs and preferences. We also have a deep commitment to serve our clients so that they are 100% satisfied with the results – and we have been doing that for many years.
We can find you your best no-deposit credit card, and you can get started on that process today!