Best credit cards for bad credit without a security deposit

Even if you have bad credit, you can still rebuild your credit with several easy-to-get credit cards that don't require an upfront deposit. Secured credit cards can also help you get your credit back on track, but they require a deposit to open.

It is crucial to closely examine the fees when comparing unsecured credit cards for individuals with poor credit. These cards may come with an annual fee, a monthly fee, and sometimes a fee for opening the account.

We evaluated unsecured credit cards for individuals with poor credit to identify the top options with reasonable fees. (For more details on our selection process, please refer to our methodology.)

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Best for rewards

If you have poor credit and want to earn rewards, the Credit One Bank® Platinum Visa® for Rebuilding Credit is a good choice.

Eligible gas and grocery purchases, monthly mobile phone, internet, cable, and satellite TV services offer standout benefits of earning 1% cash back.

Best for no credit

If you have a credit score, the Petal® 2 "Cash Back, No Fees" Visa® Credit Card requires an average/fair credit score. However, if you have no credit history, you can be approved based on your banking and other financial activity.

Earning up to 1.5% cashback on this card is possible, with a minimum of 1% cashback guaranteed. After 12 on-time monthly payments, the full 1.5% cashback will be received on eligible purchases.

Best for low annual fee

The Prosper® Card is suitable for those who want to avoid high annual fees. It offers a reasonable annual fee that can be waived the first year and a potentially higher credit limit than comparable unsecured credit cards.

Enrolling in autopay before your first statement is due allows you to waive the $39 annual fee for the first year of this card.

More rewarding secured credit cards to consider

Secured credit cards can be more rewarding if you have bad credit and can manage the upfront refundable security deposit. However, it can be challenging to find affordable unsecured credit cards with bad credit.

If you want to earn a welcome bonus: Discover it® Secured Credit Card

The Discover it® Secured Credit Card offers a no-annual-fee, no-foreign-transaction-fee option with a minimum security deposit of $200 to open. Earn 2% cash back on up to $1,000 in combined purchases at gas stations and restaurants, then 1% cash back on all other purchases. Discover will match all the cash back you earn in the first year.

Discover will automatically review your credit card account at seven months and determine if you qualify for an unsecured line of credit, returning your deposit.

Learn more: Discover it® Secured Credit Card

If you want to maximize your cash-back: U.S. Bank Cash+® Visa® Secured Card

The U.S. Bank Cash+® Visa® Secured Card offers a minimum opening deposit of $300, no annual fee, and numerous cash-back categories. You'll receive 5% cash back on the first $2,000 in combined purchases in two categories you select each quarter, 2% cash back in one everyday category you choose, and 1% cash back on all other purchases. Additionally, prepaid hotels, rental cars, and airfare booked through the Rewards Travel Center earn 5% cash back.

Learn more: U.S. Bank Cash+® Visa® Secured Card

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Credit One Bank® Platinum Visa® for Rebuilding Credit

Earn cash-back rewards on common purchases while rebuilding your credit with the Credit One Bank® Platinum Visa®.

Rewards

Eligible gas, groceries, mobile phone, internet, cable and satellite TV services offer a 1% cash back.

Welcome bonus

None

Annual fee

The first year costs $75, and then the annual cost is $99, which is billed at $8.25 per month.

Notable perks

You'll receive a minimum credit line of $300 and your account will be regularly reviewed for credit limit increases with this card. Additionally, you'll receive a free Experian IdentityWorks membership worth $120 annually.

Petal® 2 "Cash Back, No Fees" Visa® Credit Card

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card is free from annual, late payment, and foreign transaction fees.

Rewards

You can receive 1% cash back on eligible purchases immediately, which may increase to 1.5% cash back after making 12 on-time monthly payments.
2% to 10% cash back at select merchants

Welcome bonus

None

Annual fee

Notable perks

The Petal 2 card offers rewards for on-time payments, making it a great choice for building credit history. When you open an account, you'll start earning 1% cash back after six on-time monthly payments, which increases to 1.25% after 12 payments. Additionally, you can earn additional rewards of 2% to 10% back at select merchants.

Prosper® Card

The Prosper® Card is an affordable option for rebuilding credit without a security deposit, although it does not offer rewards.

Rewards

None

Welcome bonus

None

Annual fee

If you enable autopay on your first statement, you won't have to pay the $39 fee for the first year.

Notable perks

With the Prosper Card, you can get a credit limit ranging from $500 to $3,000, and you'll receive automatic reviews for credit line increases. Additionally, you can instantly access up to 50% of your credit limit with your digital card before a physical card arrives.

What is an unsecured credit card?

Instead of making a security deposit, unsecured credit cards use your credit history, income, and financial information to determine your credit limit.

Unsecured credit cards, including travel and business credit cards, do not require a deposit to open and are commonly used for purchases. Consistently paying your monthly bill on time and in full can help improve your credit score with an unsecured credit card. However, if you do not pay your balance in full, you will be charged interest on any remaining balance.

Pros and cons of unsecured credit cards

Unsecured credit cards are the most common and rewarding type of credit cards, including store credit cards and co-branded airline credit cards. These cards do not require a security deposit to open and offer exceptional rewards.

An unsecured card typically requires a higher credit score than a personal loan or secured debt, such as a home equity loan. As a result, if you have credit card debt, you may end up paying more in interest.

Why trust CNBC Select?

Our mission at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions with their money. Each credit card review is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of credit card products. At CNBC Select, we take pride in our journalistic standards and ethics, and we earn a commission from affiliate partners on many offers and links. However, our content is created without any input from our commercial team or external third parties. To learn more about our methodology for selecting the best unsecured credit cards for bad credit, please refer to our website.

Our methodology

CNBC Select analyzed over 250 major credit cards from FDIC-insured banks and NCUA-insured credit unions to determine which unsecured cards offer the best value for individuals with bad credit.

We evaluated each card based on various features, including rewards, annual fees, welcome bonuses, interest rates, balance transfer fees, and foreign transaction fees. Additionally, we examined any additional perks, cardholder protections, application processes, and ease of redeeming points. We also took into account CNBC Select audience data, such as demographics and engagement with our content and tools.

We utilized Esri's consumer spending data forecasts to determine where U.S. consumers spend the most money, such as on dining and travel, to help us determine the most valuable bonus categories for our rewards program. Additionally, we considered the transferability and cash-back redemption options when determining the value of points or miles.

We prioritized unsecured credit cards with fewer fees when selecting the best options for individuals with bad credit. These cards may come with additional fees that are not typical of standard cards, such as monthly fees (in addition to annual fees) and fees to open the card. As a result, cards with multiple fees or higher fees were not included in our list.

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CNBC Select has independently gathered information about the U.S. Bank Cash+® Visa Signature® Card, which has not been reviewed or approved by the card issuer before publication.

WebBank issues the Petal® 2 "Cash Back, No Fees" Visa® Credit Card.

To learn about the rates and fees for the Discover it® Secured Credit Card, please visit this link.