Unsecured Credit Cards

Find the best unsecured credit cards below

Do You Qualify for Unsecured Credit Cards?

unsecured-credit-cardUnsecured credit cards are the most common type of credit card. They are not secured by collateral and an unsecured credit card can be used for a multitude of uses ranging from shopping to renting a car abroad.

An unsecured credit card is different from a secured loan such as mortgage or auto loans. They are not directly connected to a property. This means the lender cannot seize a property if the borrower fails to pay.

Issuers of unsecured credit cards for bad credit use other means to collect debts. This could be courts or garnishments. You qualify for an unsecured credit card for poor credit based on:

  • Credit history
  • Your financial strength
  • Earnings potential

List of Unsecured Credit Cards

  1. Fingerhut Credit account
  2. Surge MasterCard
  3. Total Visa card
  4. Milestone MasterCard
  5. First Access Visa card

How an Unsecured Credit Card Works

Unsecured credit cards are common across the U.S. it is a form of pre approved loan. It allows users to make purchases or pay for services. You are not required to get separate approvals each time.

If you pay back the amount charged by the issuer, your line will stay active. You should also not exceed the credit limit of a card issuer. In essence, this is how it works:

  • The credit card issuer pays the merchant
  • There is no upfront deposit
  • You are offered a line of credit that can be thousands of dollars
  • This can be repaid up to 30 days in future

Conditions for Being Issued Unsecured Credit Cards for Fair Credit

Banks will unlikely give you an unsecured credit card on some occasions. One is you don’t have a good credit history. Another point is if you have failed to make timely payments in the past.

There is no upfront deposit required for an unsecured credit card. You can use this card to rebuild your credit rating. Just pick a card of your choice and stick to the rules:

  • Know your credit score
  • Decide if you want a short-term loan or an unsecured card for poor rating
  • Choose your card carefully
  • Sign up for a credit monitoring service

A low credit score locks you out of certain privileges. This includes being approved for top rewards, travel, or cash back cards. A long inquiry process during application could hurt your credit. This is regardless of whether you are approved or not.

You can request a free credit report from the three major reporting bureaus. This can be done once every 12 months. You can request a copy online or by calling.

Good Credit Actions

Your credit report will give you a clear picture of the entire credit history. From this, you can know where to improve. For instance, you may notice you often make late payments. If this is the case, consider setting up automatic payments.

Other ‘good credit actions’ include:

  • Making payments on time each month
  • Establishing a long credit history
  • Keeping a low credit utilization rate
  • Paying the minimum balance
  • Dispute any errors on your report

How to Increase Chances of Getting Unsecured Credit Card For Poor Rating

The first step is to make sure you know your credit score. You can use the calculator at Financer.com to check for this.

Open a bank account and see if you can pre-qualify for an unsecured card. Keep making your payments on time.

Rebuilding your credit is a gradual process. It won’t happen overnight. Take actionable steps to rebuild your score. These unsecured credit cards for fair credit can help you regain your creditworthiness. The end result will be with the time.