The 3 Best Unsecured Credit Cards For Bad Credit in 2022
If you don’t have perfect credit, you can still get approved for a credit card. These are the 3 best unsecured credit cards for bad credit in 2022.
It can seem impossible for those with less than ideal credit to get a credit card. But there are unsecured credit cards available for those who have bad credit. We’ll explain what secured credit cards are, how you can use them to improve credit, and the 3 best credit cards for people with low credit scores.
Understanding unsecured credit cards
Unsecured credit cards are traditional credit cards that, unlike secured credit cards, don’t require a deposit. That means approving an applicant with a poor credit history carries more risk for the credit card issuer. Many unsecured credit cards require applicants to have a certain credit score to mitigate that risk.
But that doesn’t mean those with bad credit can’t find an unsecured credit card. And having and using that credit card wisely can help improve your credit score!
How unsecured credit cards improve credit
Your credit score is made up of five components:
Payment history: 35%
Credit utilization: 30%
Credit history length: 15%
Types of credit: 10%
Account inquires: 10%
Some of those components will be improved when you open a new credit card; payment history if you pay your bills on time, utilization if you keep your total balances at 30% or less of your total available credit, and types of credit if previously you only had installment accounts like loans.
Some of those components will negatively impact your credit score; credit history length because new credit reduces the age of your credit history and account inquiries because the credit card issuer pulls your credit report to decide whether or not to approve your application.
But as you can see, payment history and utilization make up the majority of your credit score, so opening an unsecured credit card will help your credit score more than it will hurt it when you use that card responsibly.
Best unsecured credit cards
If you don’t have perfect credit, these are the best unsecured credit cards.
VisaPetal 1 and Petal 2 Credit Card
Petal created credit cards to help users build and improve their credit. Petal looks at more than just your credit history; your banking history is taken into account, too, things like your income and spending history.
The Petal 1 Card has a credit limit between $500 and $5,000. The Petal 2 Card limit goes up to $10,000 and offers 2-10% cash back for certain purchases. Other perks include:
No annual fee
No late fees
No foreign transaction fee
An auto payment option so you never miss or make a late payment
Jasper Card
The Jasper Card was designed for those with no U.S. credit history, making it an option for those with bad credit. Other perks include:
No annual fee
1% cashback on all purchases
No foreign transaction fee
Prosper Credit Card
Prosper is another credit card that understands not everyone has ideal credit; 80% of its customers have a credit score below 660. You can check if you’ll qualify for the Prosper Card without impacting your credit. The card does have an annual fee of $39, but that is relatively modest as far as credit card annual fees go. Some other perks include:
The first year of the annual fee will be waived if you opt-in to autopay before your first statement arrives
Initial credit limits range from $500 to $3,000, and your account is reviewed every three months to see if you qualify for an increased limit
Other ways to improve credit
Upwardli also understands that not everyone has great credit or a U.S. credit history. We can help you build or improve your credit with our Credit Builder Plan and resources to help you build credit fast!
