Unsecured credit cards are one of the most powerful tools offered by US financial institutions.
In addition to providing immediate access to short term capital, they also tend to offer lucrative bonuses and loyalty programs.
That said, many individuals struggle to access the best credit cards available, or (wrongly) believe that they are not eligible.
In this article, we’re going to share what you need to know before applying for a credit card, including who can realistically be approved.
We will also answer the most common questions we receive about US credit cards and help you move forward with choosing the best card for your needs.
This article is part of our free series on US credit cards, including how to get a US credit card with an ITIN number, which you can access here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Unsecured Credit Cards
- Who Can Apply for an Unsecured Credit Card?
- Unsecured Credit Card vs Secured Credit Card
- Benefits of an Unsecured Credit Card
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
Unsecured Credit Cards
Unsecured credit cards refer to any credit card options that do not require a security deposit. In the United States, these cards are offered by a wide range of financial institutions with varying credit card eligibility criteria.Â
In order to be approved for an unsecured card, an individual will need to complete a credit card application. One step in the credit card approval process is checking the applicant’s credit score and confirming they are a suitable borrower.
Depending on an individual’s credit score, different credit card limits and a different APR (Annual Percentage Rate) may apply. Additionally, depending on the card that the applicant is applying for, different credit card fees, terms and conditions, and credit card rewards may be applicable.
Needless to say, conducting a detailed credit card comparison in order to confirm the specific interest rates, card bonuses, and fees is an important step in the card selection process. However, you should also consider credit card security and whether the cards you’re considering are suitable for your lifestyle.
In the following sections, we’ll take a closer look at who can apply for a credit card, followed by a comparison of unsecured and secured cards.
Who Can Apply for an Unsecured Credit Card?
Anyone can apply for an unsecured credit card in the United States. In fact, US credit cards are among the most accessible forms of credit available to most applicants. But, getting approved for an unsecured credit card isn’t an easy task for everyone.
That said, with the correct strategy, foreign non-residents and individuals with weak credit history can apply for unsecured cards. This strategy requires patience and (in many cases) obtaining other US cards before applying for the unsecured card you want. While this may not be the solution most people are looking for, it is usually the best path to getting the card you want.
With this in mind, let’s dive into some of the important considerations before choosing which cards to apply for.
Can I Apply for an Unsecured Credit Card Online?
Yes, it is possible to apply for an unsecured credit card online. That said, in order to be approved online, most applicants will need to have suitable credit history and a US tax identification number.
For reference, a US tax id can include either a Social Security Number (SSN) and an Individual Taxpayer Identification Number (ITIN), which means that foreign non-residents with an ITIN are also eligible to apply.
Can I Apply for Unsecured Credit Cards With Bad Credit?
Yes, you can apply for unsecured credit cards with bad credit. However, in most cases, if you have bad credit, you should consider applying for a credit builder credit card or a secured credit card.
The reason for this is that credit builder credit cards and secured credit cards are designed to help individuals strengthen their credit score and become eligible for better credit cards in the future.
With this in mind, let’s take a look at how these different card options compare.
Unsecured Credit Card vs Secured Credit Cards
The main difference between an unsecured credit card and a secured credit card is that an unsecured credit card does not require you to make a qualifying deposit in order to obtain the card while a secured credit card does require a security deposit.
Additionally, depending on the specific cards you’re considering, unsecured credit cards tend to have a higher credit limit while secured credit cards tend to have low spend limits, which are dictated by the security deposit.
Credit Card Fee
Regardless of the credit card you choose to apply for, it’s important to carefully assess the credit card fees for holding the card, using the card, and even transacting with the card while traveling. Otherwise, you may find that the card you end up obtaining isn’t the best option for your needs and costs more than you want to maintain.
Benefits of an Unsecured Credit Card?
The benefits of an unsecured credit card include unsecured credit, immediate access to short-term capital, ability to repay the balance without incurring interest charges, support for in-person and online transactions, helps to establish a strong credit history, and the ability to earn loyalty rewards.
Benefits of Unsecured Cards
- Immediate access to short-term capital
- Ability to repay the balance before incurring interest
- Ease of use for in-person transactions
- Ability to use to complete online transactions
- Helps establish strong credit history
- Rewards for card usage and loyalty
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Frequently Asked Questions
Below are a few of the most common questions we receive from people looking into this topic. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
What Are the Best Unsecured Credit Cards for No Credit?
The best unsecured credit cards for no credit are credit builder credit cards. Credit builder credit cards help individuals with no (or bad) credit establish (or re-build) their credit history. They do this by providing access to low credit limits that match their existing credit profile.
Can I Get an Unsecured Credit Card With Bad Credit?
Yes, it is possible to get an unsecured credit card with bad credit. However, the credit cards that are available to individuals with bad credit tend to charge higher interest. Likewise, they have lower credit limits, and (in certain instances) may require a security deposit.
Can I Get a Credit Card With a 550 Credit Score?
Yes, you can get a credit card with a 550 credit score. However, the credit card that you will be able to get is likely a secured credit card, which will require a security deposit in order to hold against the card. This type of credit card can help you establish your credit history and in time become eligible for an unsecured credit card.
Do You Want Help Opening a US Bank Account?
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