Best second chance credit cards with no security deposit of July 2024
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Updated 2:46 p.m. UTC July 10, 2024
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Everyone makes mistakes. But when it’s a big financial misstep it can tank your credit score, making it hard to qualify for certain types of loans. However, it is possible to bounce back. Using a credit card responsibly can help you reestablish your credit. If you’re unwilling or unable to pay the deposit to get a secured card, you have another option: A “second-chance” credit card with no security deposit required.
We analyzed the available options to select the very best in this category. Here are our selections for the best second-chance credit cards with no security deposit of 2024.
Best second chance credit cards with no security deposit
- Petal® 2 “Cash Back, No Fees” Visa® Credit Card *: Best second chance credit card with no security deposit.
- Capital One Platinum Credit Card *: Best for no frills.
- Petal® 1 “No Annual Fee” Visa® Credit Card *: Best for rebuilding credit.
- Upgrade OneCard *: Best for flexible repayment options.
- Prosper® Card *: Best for quicker credit limit increases.
Why trust our credit card experts
Our team of experts evaluates hundreds of credit cards and analyzes thousands of data points to help you find the best card for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 20+ cards analyzed.
- 5+ data points analyzed.
- 5-step fact-checking process.
Best second chance credit card with no security deposit
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
*The information for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Best for no frills
Capital One Platinum Credit Card
*The information for the Capital One Platinum Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Best for rebuilding credit
Petal® 1 “No Annual Fee” Visa® Credit Card
*The information for the Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Best for flexible repayment options
Upgrade OneCard
*The information for the Upgrade OneCard has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Best for quicker credit limit increases
Prosper® Card
*The information for the Prosper® Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Compare the best second chance credit cards with no security deposit
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$200 welcome bonus when you start using a new Rewards Checking account and make three purchases
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The information for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Why it’s the best
The Petal 2 Visa Credit Card (issued by WebBank) stands out since, unlike most second-chance cards, which can carry hefty fees, the Petal 2 card has no annual fees, no returned payment fees, no late fees and no foreign transaction fees.
Pros:
- You can use the issuer’s preapproval tool to evaluate your chances of being approved for the card before you apply.
- Potential credit limit increase in six months. When you pay at least 15% of your monthly billing statement for six months in a row, Petal may boost your credit limit.
- No late fees, returned payment fees or foreign transaction fees.
Cons:
- Potentially high APR. Depending on your creditworthiness, you may be assessed an APR well above average.
- Cash-back rewards rates are tied to on-time payments over the course of a year. You only earn 1% cash back at first, then after six months of on-time payments, that rate increases to 1.25%, then 1.5% after a year of on-time payments.
- No welcome bonus. This is not atypical of credit-building cards.
Card details:
- Annual fee: $0.
- Rewards: 1% cash back right away and up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments. Plus, earn 2% to 10% cash back at select merchants.
- Welcome bonus: None.
- APR: 18.24% to 32.24% variable APR.
The information for the Capital One Platinum Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Why it’s the best
The Capital One Platinum is a solid pick for its simplicity. The no-frills card will report your account activity to the three major credit bureaus every month, which will help with rebuilding your credit history. It’s designed for people with fair credit (typically defined as those with FICO Scores in the 580 to 669 range) and comes with a preapproval tool to check your approval potential.
Capital One will conduct automatic credit line reviews to see if you qualify for a credit line increase after six months of using the card responsibly, which can further benefit your score.
Pros:
- You can use the issuer’s preapproval tool to evaluate your chances of being approved for the card before you apply.
- Automatic credit line reviews every six months.
- No foreign transaction fees. You won’t be hit with a fee for every purchase you make when traveling abroad.
Cons:
- High APR. The card comes with a flat APR that’s higher than average.
- No rewards program. You won’t earn cash back or points for your purchases with this card.
- No purchase protection or extended warranty coverage.
Card details:
- Annual fee: $0.
- Rewards: None.
- Welcome bonus: None.
- APR: 29.99% variable APR for purchases and balance transfers.
Who are the three major credit bureaus and why are they important? Here’s the scoop on who they are and what they do.
The information for the Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Why it’s the best
Those without enough of a credit history to qualify for the Petal 2 may have a better shot at getting approved for the Petal 1 card (issued by WebBank), which is notable for being available to consumers with no credit profile yet not requiring an upfront security deposit. Petal 1 offers rewards at select merchants, too.
Pros:
- You can use the issuer’s preapproval tool to evaluate your chances of being approved for the card before you apply.
- Potential credit limit increase after six months of on-time payments.
- No foreign transaction fees. You won’t have to pay more when using your card for purchases made abroad.
Cons:
- Very high APR. Carrying a balance on this card will be very expensive.
- Limited rewards. Cash-back rewards are only available at select merchants.
- Potentially low credit limit at first.
Card details:
- Annual fee: $0.
- Rewards: 2% to 10% cash back at select merchants.
- Welcome bonus: None.
- APR: 25.24% to 34.74% variable APR.
The information for the Upgrade OneCard has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Why it’s the best
What makes the Upgrade OneCard unique in this category are its multiple repayment options. For example, you can opt to pay for a purchase on the card once the charge hits your account through a linked checking account, much like a debit card — or you can opt to finance a purchase over time with a fixed monthly payment and a fixed APR with the “Pay Later” feature. This kind of flexibility can be especially helpful to those looking to build credit and stay on top of their finances.
Pros:
- You can use the issuer’s preapproval tool to evaluate your chances of being approved for the card before you apply.
- Cash-back rewards. With a linked Rewards Checking account, you can earn solid cash-back rewards on purchases made with the card.
- Welcome bonus. Earn $200 after opening a new Rewards Checking account and making three purchases.
Cons:
- Your credit line may not be replenished automatically once you repay. Unlike other cards that automatically restore funds to your credit line once you repay, the Upgrade OneCard may hold onto those funds subject to its credit requirements.
- Lowest APR rate requires autopay. If you qualify for the low end of the APR range, you’ll be required to set up autopayments.
- Without a linked Rewards Checking account, you’ll earn minimal rewards on purchases.
Card details:
- Annual fee: $0.
- Rewards: 3% cash back on qualifying spending categories (up to $500 in rewards per calendar year; then earn 2%) and 2% cash back on all other eligible purchases. Earn 1.5% cash back without a Rewards Checking account when making repayments.
- Welcome bonus: $200 after opening a new Rewards Checking account and making three purchases.
- APR: 14.99% to 29.99% variable APR.
The information for the Prosper® Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Why it’s the best
While many of the cards on this list promise automatic credit limit increases after six months of on-time payments, the Prosper Card will evaluate your ability to boost your credit limit after just three months. However, the Prosper Card has the highest APR range among all the cards on this list, so it’s important that you try not to revolve a balance and only use the card for small purchases that you can safely pay off every statement period.
Pros:
- You can use the issuer’s preapproval tool to evaluate your chances of being approved for the card before you apply.
- Potentially high initial credit limit. Depending on your creditworthiness, you may qualify for a credit line anywhere from $500 to $3,000.
- Immediate access to half of your initial credit line. Once approved for the card, you can start using it for purchases before the physical card arrives in the mail.
Cons:
- Annual fee of $39 (waived for the first year if signed up for AutoPay before the first statement).
- No rewards. There is no rewards program with the Prosper Card.
- Foreign transaction fees. When using your card for purchases abroad, you’ll be assessed a foreign transaction fee of 1% of the transaction amount.
Card details:
- Annual fee: $39 (waived for the first year if signed up for AutoPay before the first statement).
- Rewards: None.
- Welcome bonus: None.
- APR: 24.24% to 35.24% variable APR on purchases.
Methodology
Our credit cards team has spent hours analyzing hundreds of credit cards. We took a deep dive into the details of each product and that analysis, combined with our years of experience covering credit cards, informed us as we developed these credit card rankings. When creating our rankings for second-chance credit cards without a security deposit we considered:
- Annual fees: 25%.
- APR: 40%.
- If the card reports to all three credit bureaus: 20%.
- Offers a path to a higher credit limit: 10%.
- If secured, does it offer a path to upgrade to unsecured: 5%.
What is a second chance credit card?
A second chance credit card is one that’s designed to help those looking to rebuild their credit after financial missteps by adding positive information to their credit profiles.
The standards for approval on second chance cards tend to be much lower than with regular credit cards, and the cards may be secured (requiring a security deposit) or unsecured. Through responsible usage, such as paying on time and keeping a low balance, you may boost your credit score as your account and payment activity get reported to the credit bureaus.
If you’re new to credit, see our recommendations for best first credit cards.
What is second chance credit?
Second-chance credit is similar to a second-chance credit card, but refers to loans to individuals with bad credit who may not otherwise qualify for standard loans. These loans are often called subprime loans and come with higher-than-average interest rates.
How to get a credit card with no security deposit
When you are rebuilding your credit or just starting your credit journey, one of the best ways to boost your credit score is by applying for and using a credit card designed for those with bad or non-existent credit profiles.
The easiest credit-building credit cards to qualify for are those that require a security deposit, which acts as your line of credit. Essentially, you are borrowing and repaying from your own money. However, some of these “secured” cards come with multiple fees that can quickly eat away at your deposit.
Preapproval tools can help you determine your odds of being approved for a credit-building card that doesn’t require a security deposit. A preapproval tool is not a 100% guarantee you’ll qualify, but using the tool does not hurt your credit score or require a hard pull of your credit and can provide some insight into whether you’ll have to resort to a secured card if you do not prequalify for any of the cards above.
How to get approved for a second-chance credit card
The best way to determine your odds of approval for a second-chance credit card is to use the card issuer’s preapproval tool. If preapproved, your odds of qualifying for the card are high, but not guaranteed. Once you formally apply, the issuer will do a more thorough credit check before deciding to approve you for the card.
Can you get an unsecured credit card after bankruptcy?
Filing for bankruptcy has a long-term impact on your credit, which can make it difficult to qualify for a credit card. However, there are a variety of secured credit cards and unsecured second chance cards designed for borrowers who need to rebuild or establish credit.
Keep in mind that you may need to complete your bankruptcy proceedings before you can apply for a new line of credit.
Are second chance credit cards worth it?
Yes, applying for and responsibly using a second-chance credit card can have a positive impact on your credit history and credit score. If you keep your balances low and pay on time, your credit scores should improve, as long as the issuer reports the account and payment history to all three credit bureaus.
Tips for building credit with a second-chance credit card
If you’re trying to rebuild your credit profile with a second chance credit card, you’ll want to avoid making mistakes that will further tank your credit. Here are some best practices to follow once you are approved for a second chance credit card:
- Only use the card for small purchases that you can afford to pay off when your statement arrives. Since many second-chance credit cards carry high APRs, any unpaid balance will quickly inflate as interest charges are added, which can make it more difficult to pay down.
- Pay on time every time. Nothing tanks your credit faster than a history of late payments. To avoid missing a payment, you can set up autopayments through your bank or card issuer.
- Increase your credit limit. While your initial credit limit on a second-chance card may be low, many of the cards on this list offer automatic credit line increases after a certain number of months if you pay on time regularly and keep a low balance. If you maintain the same low balance, a higher credit limit can lower your credit utilization, which is an important factor in your credit score.
- Don’t max out your card. It can be very easy to hit your credit limit when it’s low, so if you happen to use your card for a large purchase, try to pay it off right away before your statement due date. Maxing out your card will hurt your credit score, resulting in high utilization (the amount of debt you’re carrying relative to your credit limit).
- Track your progress. Over time and with responsible use, your credit score should improve. There are a number of free tools available to check your credit score to see if it’s trending in the right direction.
- Ensure your card reports to all three credit bureaus. Before you apply for a second-chance card, make sure the issuer will report the account and payment activity to all three credit bureaus: Equifax, Experian and TransUnion.
Wondering how to repair damaged credit? Here’s how to do it
Frequently asked questions (FAQs)
That depends on a variety of factors. For example, if you defaulted on payments and a card account was sent to collections, you may have a hard time being approved for another card from the same issuer or any other issuer. However, some issuers may be more forgiving than others. It’s best to call a customer service rep and ask or use an issuer’s preapproval tool to weigh your chances of being approved.
The easiest cards to qualify for those with severely damaged credit are secured cards, which require a security deposit. Otherwise, if you’re new to credit, a student or have made some more minor credit mistakes in the past, there are some unsecured credit cards that are easier to qualify for as they are designed to help you build or rebuild your credit profile.
The easiest unsecured credit card to get approved for will depend on your creditworthiness and other factors. For example, if you’re a college student, you may be able to easily qualify for a student card, which will typically come with a low credit limit at first. Or you may qualify for a store card, which typically have lower credit qualifications for approval, but often start you out with a low credit limit.
If you are rebuilding your credit, you can check out unsecured cards specifically designed for credit-building. And if you are new to credit, there are some unsecured cards marketed to those who are just starting their credit journey.
Yes, there are credit cards designed to help you build or rebuild your credit score, although they will likely be secured cards or unsecured cards with very high interest rates and low credit limits.
Yes, you may be able to qualify for a second credit card when you have bad credit, but you’ll likely qualify for a secured card or unsecured card designed to help rebuild credit. Those cards typically come with high interest rates and low credit limits.
To increase your odds of approval, you may want to apply for cards that offer a preapproval tool, which will give you a better idea of whether you will qualify.
*The information for the Capital One Platinum Credit Card, Petal® 1 “No Annual Fee” Visa® Credit Card, Petal® 2 “Cash Back, No Fees” Visa® Credit Card, Prosper® Card and Upgrade OneCard has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
