Have you been thinking about getting a credit card but have bad credit? You might think that you won’t qualify for a credit card, but you certainly can. There are unsecured credit cards for bad credit with no deposit available right now. These are the most common credit cards out there, and the cards that you are probably most familiar with.
Secured Credit Cards vs Unsecured Credit Cards for Bad Credit with No Deposit
It is not difficult to find an unsecured credit card, even if you have bad credit. Most lenders and banks have several options available. As you start your research, you likely have come across both secured and unsecured credit cards. What’s the difference?
When you have an unsecured credit card, you don’t have to pay a deposit to get the card. If you default on your credit card, the creditor cannot take your security deposit because there isn’t one. However, with a secured credit card, you must put down a deposit, and that deposit turns into your credit line. In this case, if the person with the secured credit card defaults, they can lose their entire security deposit, even if they haven’t used all of it for credit.
Obviously, it’s best to get unsecured credit cards for bad credit with no deposit instead of a secured card. These cards often have lower interest rates, reward programs, and other perks that secured credit cards don’t have. Of course, you also don’t have to put several hundreds of dollars down as collateral.
Qualifying for an Unsecured Credit Card
People who have no credit or bad credit might have a more difficult time qualifying for an unsecured credit card than those who have fair or good credit. Creditors look at a person’s credit history and might not be willing to take the risk. If your credit score is really low, you might not qualify for an unsecured credit card until you bring it up.
How can you bring it up? One of the best ways is to get a secured credit card. Put $300 down as collateral, use the card, and then pay it off. Eventually, your credit score goes up and you now qualify for an unsecured credit card. Oftentimes, you can even convert your secured card into an unsecured card and get your deposit back. Most lenders offer this after the borrower makes on-time monthly payments for 12 to 18 months.
You might improve your chances of qualifying for an unsecured credit card by using a secured card for a few months, reducing your debt, and paying off any accounts that are late. You also can get a co-signer who can get the credit card with you. This person would be responsible for your debt, but you wouldn’t have to put down any collateral and your credit score would increase.
If you are having troubles getting an unsecured credit card but still need cash in a hurry, a personal loan can help, too. We have these online loans available, even if you have bad credit. You also don’t have to put any collateral or deposit down to qualify.