Top 5 Cards For Bad Credit With No Deposit

February 23, 2018, Written By Jason Steele

Do you have bad credit? Then you know it is very hard to qualify for a credit card that is not a secured card which requires a deposit. But at the same time, being approved for a credit card is vital to your efforts to rebuild your credit. Having a credit card will help you to increase your account history and develop a payment history, both of which are necessary to improving your credit score.

Certainly, secured cards are offered to those with bad credit, but they require a deposit that becomes your credit limit, and these products can have very high interest rates and fees. Thankfully, there are now several standard, non-secured credit cards that are available to people with bad credit which don’t require a deposit. In addition, there are prepaid debit cards that offer much of the convenience and security of a credit card. With prepaid cards, customers must load funds in advance, which can then be used to make purchases where debit or credit cards are accepted. And thankfully, there is no way to incur debt or interest charges when you use a prepaid card.

Here are the top five cards for applicants with bad credit in which a deposit is not needed to open an account:

Milestone Mastercard

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The Milestone Mastercard is offered to applicants with bad credit, and has very reasonable terms for a product of this type. Cardholders receive all of the benefits of the MasterCard including the MasterCard Global Service program, which is available 24 hours a day, 365 days a year. It offers emergency replacement lost or stolen cards, emergency cash advances, ATM location services and account-related information including any applicable card benefits.

The standard interest rate is 23.9%, and there is a 25-day grace after the close of each billing cycle during which cardholders can avoid interest by paying their balance in full. The annual fee for this card is either $35, $59, or $99 (with a $75 fee the first year). The fee you are assessed will depend on your credit worthiness.

Credit One Bank Unsecured Visa for Rebuilding Credit

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The Credit One Bank Unsecured Visa for Rebuilding Credit allows you to pre-qualify without harming your credit score. Once approved, fees and interest rates will vary based on your credit. The APR on purchases can range from 19.15% - 25.24% Variable, and are slightly higher for cash advances. The fees for cash advances also vary. Those with lower credit will be charged $5 or 8%, whichever is greater, on cash advances, and those with better credit will be charged $10 or 3%, whichever is greater. The annual fee will range from $0 to $99, depending on your credit.

Credit lines will range between $300 and $3,000, depending on the applicant’s credit, and timely payments mean your credit line could increase, though additional fees may apply. Perks of the Credit One Bank Unsecured Visa include 1% cash back rewards, $0 fraud liability, the ability to change your due date, and a mobile app that allows you to manage your account. Additionally, Credit One reports to all three major credit bureaus, and you can monitor your Experian credit score online for free.

First Access Visa Credit Card

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The First Access Visa card charges an $89 processing fee, which is only charged if you are approved for the card. Once approved, you will have access to a $300 credit limit, and your timely payments will be reported to all three credit bureaus. After six months, you may also be granted a higher credit limit if you have used the card responsibly.

You will have to pay an annual fee of $75 in the first year and $48 per year after that. Additionally, you will have to pay a monthly servicing fee of $6.25 after the free introductory year.

Indigo Platinum Mastercard

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The Indigo Platinum Mastercard allows you to pre-qualify for a card without impacting your credit score. The APR is set at 23.9%, but your annual fee will depend on your credit. You will be charged either $59, which is waived for the first year, or $99 per year, which is discounted to $75 in the first year.

Perks of the card include fraud protection for lost or stolen cards and mobile account access. Your account history is also reported to the three major credit bureaus.

Official NASCAR Credit Card

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Offered by Credit One Bank, the Official NASCAR card allows you to see if you pre-qualify without hurting your credit score. Your interest rate and annual fees will vary greatly based on your current credit score. The APR on purchases will be 17.24% - 25.24% Variable, while the APR on cash advances will be slightly higher. Cash advance fees will also cost $5 or 8%, whichever is greater for some people, or $10 or 3% for others. The annual fee will vary from $0 to $99.

Benefits of the card include 1% cash back rewards on eligible purchases and 2% cash back on purchases made at the superstore. The card also offers fraud liability, and you can monitor your Experian credit score for free. If you maintain a positive payment history, you may be granted a credit increase, though fees may apply.

The information contained within this article was accurate as of February 23, 2018. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.

About Jason Steele

Jason Steele is freelance journalist and an expert on the credit card industry. He contributes to several of the top personal finance sites, and his work is syndicated to mainstream outlets such as MSN Money, Yahoo! Finance, and Business Insider.
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