Unsecured credit

What is an unsecured credit card?

There are many types of credit cards, but an unsecured credit card is what we traditionally think of when we think of an unsecured credit card. In fact, most credit cards are unsecured, giving you plenty of options when you need a new credit card. You still need credit to apply and receive approval, but the requirements all depend on the card you choose.

If you’re considering getting a new credit card, an unsecured credit card could very well be the card for you.

What is an unsecured credit card?

An unsecured credit card is a card that does not require collateral or a deposit to receive the card. After approval, you receive a specific line of credit that allows you to purchase items with your credit card. It is a revolving line of credit, which means that you benefit from a specific credit limit. As you spend, you make payments to stay within your limit. Depending on your credit, you benefit from an interest rate that allows you to apply on purchases that you do not pay right away.

With an unsecured credit card, you may have the option of paying for your purchases later, either in full or in installments pre-assigned by your credit card issuer. These cards can feature the Visa or Mastercard logo, giving you greater purchasing power.

Who should get an unsecured credit card?

There are many times an unsecured credit card could be a great choice.

  • Good or excellent credit: Unsecured credit cards rely on your credit score to receive approval, so it’s usually important to have a good or excellent credit score.
  • Emergency room : An unsecured credit card can be a great choice to keep on hand for urgent expenses, like a medical bill or a home emergency.
  • Awards: Many unsecured credit cards offer rewards when you reach a certain purchase threshold. Dollar requirements and type of rewards vary, but you can earn anything from cash back to travel perks when you apply for a rewards credit card.

The Chase Sapphire Preferred Card and American Express Gold Card are among our top picks for the best unsecured credit cards.

What type of credit do I need for an unsecured credit card?

Unsecured credit cards are generally best for those with good or excellent credit, which means a credit score between 661 and 850. When you have a high credit score, it shows credit card issuers that you are accustomed to making responsible and timely payments. It is possible to receive an unsecured card with a lower credit score, but these cards usually come with multiple or astronomical fees that may not be worth it.

If you have bad credit, it’s probably best to choose a secured credit card instead, which gives you a line of credit in exchange for a deposit.

Experian Credit Score

Experian

What are the pros and cons of an unsecured credit card?

Like anything else, there are pros and cons to an unsecured credit card. These are a few that may deserve your attention.

Advantages

The inconvenients

  • Low credit requirements
  • Flexible credit limit
  • No deposit required
  • May offer additional rewards
  • Can be hard to get approved
  • usually have high interest rates
  • Can have a lot of costs
  • Generally limited rewards

How can I get an unsecured credit card?

To get an unsecured credit card, it’s important to shop around for your options and compare different credit cards.

Once you are ready to apply, there is certain information that the credit card issuer will require, in addition to your credit score.

  • Personal data, such as your name, address and date of birth
  • Social Security number
  • Annual revenue

You can usually apply online for most unsecured credit cards.

Introductory bonusN / A

APR26.99% (Variable)

Recommended credit Average, Fair, Limited

Reward rateN / A

Annual fees$0

Intro Purchase APRN / A

The Capital One Platinum credit card has no annual fee. Interest is high with a variable APR of 26.99%, but Capital One will also automatically review your line of credit as early as six months. There is also a $0 fraud liability included with your card membership. You will likely need fair credit for approval.

Advantages

  • Credit just needed
  • No annual fees or foreign transaction fees
  • No balance transfer fees

The inconvenients

  • High interest
  • No introductory offer
  • A limited line of credit

Are there other unsecured credit cards worth considering?

Many banks and financial institutions offer unsecured credit cards. Some popular unsecured credit card providers include Capital One, Discover, and newcomer Petal.

We regularly poll today’s major credit cards to find the best unsecured credit cards for your needs.

Our latest review includes these other top-rated credit cards:

Choose this unsecured credit card…

If you are or want…

Capital One QuicksilverOne Cash Rewards

Unlimited Cashback

Check it out Student Cash Back

Students

Petal 2 No Fee Visa Cash Back

No credit

Credit One Bank Platinum Visa for Credit Reconstruction

bad credit