There are many types of credit cards out there, 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 are considering getting a new credit card, an unsecured credit card could very well be the card for you.
An unsecured credit card is one that does not require collateral or deposits in order to receive the card. Upon 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 are given a specific credit limit. As you spend, you make payments to stay within your limit. Based on your credit, you receive an interest rate that allows you that applies on purchases you do not pay right away.
With an unsecured credit card, you can have the ability to pay for your purchases later either in full or in installments pre-assigned by your credit card issuer. These cards can bear the Visa or Mastercard logo, giving you greater spending power.
There are many times an unsecured credit card could be an excellent choice.
The Chase Sapphire Preferred Card and American Express Gold Card are among our top picks for the best unsecured credit cards.
Unsecured credit cards are generally best for those with good or excellent credit, meaning a credit score between 661 and 850. When you have a high credit score, it shows credit card issuers that you have a history of making responsible and timely payments. It is possible to receive an unsecured card with a lower credit score, but these cards are generally accompanied by multiple or astronomical fees that may not make these cards worth your while.
If you have a poor credit score, you are likely better off selecting a secured credit card instead, which gives you a line of credit in exchange for a deposit.
Just like anything else, there are both pros and cons to an unsecured credit card. These are a few that may be worth your consideration.
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To get an unsecured credit card, it is important to shop your options and compare different credit cards.
Once you are ready to apply, there are certain pieces of information that the credit card issuer will require, in addition to your credit score.
You can typically apply online for most unsecured credit cards.
Several banks and financial institutions offer unsecured credit cards. Some popular providers of unsecured credit cards include Capital One, Discover, and newcomer Petal.
We regularly survey today's leading credit cards to find the best unsecured credit cards for your needs.
Our latest study includes these high-rated credit cards:
Choose this unsecured credit card… |
If you are or want to… Popular now |
Capital One Platinum Credit Card |
Build credit |
Capital One QuicksilverOne Cash Rewards |
Unlimited cashback |
Discover It Student Cash Back |
Students |
Petal 2 Cash Back No Fees Visa |
No credit |
Credit One Bank Platinum Visa for Rebuilding Credit |
Bad credit |
Also: The 5 best unsecured credit cards: Bad credit? No worries