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The Best Unsecured Credit Cards in The US (2022)
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Instead, they are mostly used for the establishment or improvement of credit.
As you continue to read this article, you will be enlightened on the essential information about unsecured credit cards and who can possess them. But before we dive into the main topic, let’s provide an answer to “what is an unsecured credit card?”
Instead, they are mostly used for the establishment or improvement of credit.
As you continue to read this article, you will be enlightened on the essential information about unsecured credit cards and who can possess them. But before we dive into the main topic, let’s provide an answer to “what is an unsecured credit card?”
What Is An Unsecured Credit Card
An unsecured credit card, as the name implies, is a card that differs from secured cards because they are not backed by a cash deposit. This, however, does not mean they are not subject to a few fees, such as interest and late fees. Although these credit cards come with a benefit of zero cash deposits, they usually come with high annual percentage rates should incase the cardholder default.
Generally, unsecured credit cards are for fair credit, and issuers do not gamble on the trustworthiness of the cardholders because these cards do not come with cash deposits. Hence, to avoid the risk they might incur for trusting the cardholder, they often charge high annual percentage rates, regular maintenance fees and costly penalties for late payments.
The high cost of using these cards make issuers worry less when a cardholder default because they would have made more money upfront. The main similarity between a secured and unsecured credit cards is the fair credit they come with, and these are usually low in credit limits. The main difference also lies in this credit limit; the limits on unsecured cards are relatively lower than those found on secured credit cards.
The Best Unsecured Credit Cards In The US
Although there are several kinds of secured credit cards in the United States, there are also various unsecured credit cards. Meanwhile, only a few unsecured credit cards are suitable for the term “best.” We, however, considered a few factors, such as the credit needed, annual fees and APR, to determine the best unsecured credit cards. The best-unsecured credit cards include the following:
Capital One QuicksilverOne Cash Rewards Credit Card
Capital One Platinum Credit Card
Discover it® Student chrome
Discover it® Student Cash Back
Journey Student Rewards from Capital One
Who Can Get an Unsecured Credit Card for Fair Credit?
Unsecured credit cards for fair credit are specifically made for individuals who can not get their regular cards approved. This is primarily because they do not meet the requirements but getting an unsecured credit card comes with a few requirements. Hence, getting an approved card is easier, even with a fair credit score.
Since you can be approved a card with a fair credit score, an unsecured credit card provides you with an opportunity to rebuild your credit. Although they help you rebuild and establish your credit score, they come with a few limitations like a higher interest rate and fees.
In conclusion
You do not need any collateral or cash deposit to be approved by a credit card if you go for the unsecured type. Although they come with high annual percentage rates and interest, they are useful for people who want to rebuild their credit history.
