If credit cards are new to you, it can be really difficult for you to manage even one card. You might forget to pay the credit card bill or you might end up overspending. All in all, it can be a little tough for you to get used to credit cards. And instead of increasing your credit score, this might result in a bad credit score.
But just like everything else in life, you deserve a second chance with credit cards too. So that you can learn from your previous mistakes and use credit cards more responsibly to ultimately build your credit score. After all, credit cards have become extremely important these days.
In this article, we are going to introduce you to the best second-chance credit card with no security deposit. We will also tell you about the tips and tricks to build your credit score using second-chance credit cards. Here we go!
What are Second Chance Credit Cards?
Second-chance credit cards are specially made for people with bad credit scores. They are designed to help bad credit holders build their credit scores. If your credit card journey with your first credit card was not good, you do not need to worry, with 2nd chance credit cards, you will get a chance to work on your previous mistakes and improve them.
Generally, a second chance credit card is a secured credit card, where you have to pay a security deposit to get your credit card, and if you fail to pay the credit card bill, your credit card company has the right to keep your security deposit. But some credit card companies also offer second chance credit cards no deposit to people with bad credit scores.
Top Second Chance Credit Card With No Security Deposit
In this section of the article, we are going to tell you about the top 7 2nd chance credit cards with no security deposit. In order to get these cards, you will not need to pay any security deposit. Moreover, it will allow you to build your credit score. So now let’s have a look at the second chance unsecured credit cards.
1. PREMIER Bankcard MasterCard Credit Card
Are you someone with a bad credit score and looking for a credit card to build your credit score? PREMIER Bankcard MasterCard Credit Card is perfect for you. If your credit score is somewhere between 300 to 850, you can easily get this credit card. Also, this credit card is perfect for building your credit score because, at the end of every month, it reports all your credit activities to all three major credit bureaus.
Moreover, if you are planning to get this credit card, you know that for the first year, the annual fee can be $50 to $125, depending upon your credit score, and from the second year is $49. PREMIER Bankcard MasterCard Credit Card offers you free access to FICO scores.
Features
- Preferred Credit Score: 300 to 850
- Annual Fee: $50.00 to $125.00 for the first year and then $49.00 for the second year
- Regular APR: 36.00%
- Foreign Transaction Fee: 3.00%
- Rewards: No Rewards Program
Pros
- Free access to FICO scores.
- Reports to all three credit bureaus.
- Good for credit building.
- You can keep track of your credit score for free.
Cons
- APR is extremely high.
- You have to pay a fee for a credit limit increase.
- A high annual fee for the first year, especially for bad credit holders.
2. Indigo Mastercard
If you are looking for an unsecured credit card for bad credit, Indigo MasterCard is perfect for you. Though you can easily get this credit card even with a bad credit score, it does not come with any rewards or intro APR, so no matter how frequently you use this credit card, you would not be able to get any cashback.
It comes with a minimum credit limit of $300, so even if your credit score is bad or zero, you will at least get a $300 credit limit. Indigo MasterCard allows you to build your credit score by reporting your credit activities to all the credit bureaus. Moreover, the attractive design of this credit card is just the cherry on the cake.
Features
- Preferred Credit Score: None
- Annual Fee: $0.00 to $99.00, depending on your credit score
- Regular APR: 24.90%
- Rewards: N/A
- Intro APR: N/A
- Foreign Transaction Fee: 1.00%
Pros
- Even people with bad credit scores or zero credit history can qualify for this card.
- They allow pre-qualification.
- No annual fee for good credit holders.
- Reports your credit activity to all three credit bureaus.
Cons
- Over the top annual fee for bad credit holders.
- There is no intro APR.
- They do not offer any rewards.
3. PREMIER Bankcard Grey Credit Card
Are you looking for a credit card to build credit? If yes, then PREMIER Bankcard Grey Credit Card is perfect for you because as soon as you use your credit card for some transaction, this credit card company immediately reports it to the credit bureaus. The best part is, you do not need to pay any security fee for this credit card.
They also allow pre-qualification, so before actually applying for the credit card and going through hard inquiry, you can see whether you will get this credit card or not with a soft inquiry of your credit score. Moreover, they have a user-friendly mobile application that allows you to manage your credit card and pay credit card bills online.
Features
- Preferred Credit Score: Bad to fair credit score
- Annual Fee: N/A
- Rewards: No Rewards
- Intro APR: N/A
- Security Deposit: None
- Pre-Qualification: Available
Pros
- Their approval process is extremely fast.
- They offer free monthly FICO scores.
- Easy to use- mobile application.
- No security deposit is needed.
Cons
- APR is very high.
- Some unnecessary fees are there.
4. Total Visa Card
Hands down, Total Visa Credit Card is one of the best second credit cards out there. It comes with an initial credit limit of $300, but as you pay the bills on time and maintain your credit card well, you can apply for a credit limit just within the first year of owning the card. For the first year, the annual fee of the Total Visa card is $75 but for the second year, the annual fee is just $49.
This credit card comes with a high variable APR of 34.99%. For the Total Visa card, you need to pay a program fee of $89.00 and from the second year, you will also need to pay a monthly servicing fee of $6.25. Although it is a good credit card for building your credit score because of its instant reporting to the credit bureaus.
Features
- Preferred Credit Score: Poor or Bad
- Annual Fee: $75 for the first year and then from the second year it is $49
- Monthly Service Fee: $6.25
- Regular APR: 34.99%
- Initial Credit Limit: $300
- Welcome Bonus: N/A
Pros
- You do not need to make any security deposit.
- You can apply for a credit limit increase within the first year.
- Overall, a good credit card for credit building.
- You can apply for pre-qualification with a soft inquiry.
- Even bad credit holders can get this credit card.
Cons
- You can only use this credit card in the U.S.A.
- Low initial credit limit.
- The APR is very high.
- High one-time program fee.
5. Surge Platinum MasterCard
The Surge Platinum MasterCard is one of the best second chance credit cards in the market. It comes with an initial annual fee of $75 to $99 for the first year, which becomes $99 from the second year. If you need a credit card to build your credit score then we would recommend you to go with this credit card because it reports all your credit activities to all three major credit bureaus including Experian, Equifax, and TransUnion.
The best part about Surge Platinum MasterCard is, if you manage the credit card well and pay all the bills on time, you can get a credit limit increase just after 6 months of owning the credit card. Also, if you fail to pay the bill on time, you will have to pay a late fee which can be up to $40.
Features
- Preferred Credit Score: Bad or no credit history
- Annual Fee: $75 to $99 for the first year and then $99 for the second year
- Monthly Maintenance Fee: $0.00 to $10.00 from the second year
- Regular APR: 29.99% (Variable)
- Intro APR: N/A
- Rewards: N/A
Pros
- You can apply for a credit limit raise just after 6 months of owning the card.
- People with bad credit scores or no credit history at all can also get this credit card.
- This credit card helps in building your credit score.
- You can get a credit limit of up to $1,000 without any security deposit.
Cons
- The annual fee is very high.
- High APR and no intro APR.
- This credit card does not offer any rewards or cash back.
6. Milestone MasterCard
Looking for a second chance credit card with no security deposit? Milestone MasterCard can be a perfect choice for you. You will have to pay an annual fee of $35 to $99 depending on your credit score to keep this credit card. But you will not get any rewards or low introductory APR.
So if you want a credit card to save money, this might not be a good option for you. But if you are looking for 2nd chance credit cards to improve your credit score then you can consider going with Milestone MasterCard because it reports all your credit activities to all three credit bureaus.
Features
- Preferred Credit Score: Poor or Bad
- Annual Fee: $35 to $99, depending on your credit score
- Welcome Bonus: N/A
- Pre-Qualification: Available
- Regular APR: 24.90%
Pros
- One of the best second credit cards.
- Offers zero liability in case of monetary fraud and identity theft.
- Reports to all 3 credit bureaus.
- Easy application and approval process.
Cons
- Annual fees can be very high for bad credit holders.
- They do not offer any intro APR or rewards.
- High APR of 24.90%.
7. Capital One QuicksilverOne Cash Rewards Credit Card
Are you looking for 2nd chance credit cards with no security deposit and a handful of rewards? Capital One QuicksilverOne Cash Rewards Credit Card is the right choice for you. This unsecured credit card offers you 1.5% cash back on all your purchases and 5% cash back on rental car bookings and hotel bookings if you do it through Capital One Travel.
Moreover, it comes with an annual fee of just $39, which is very low compared to other unsecured credit cards. Also, the regular APR is 29.74% and there is no foreign transaction fee. They also offer 0% intro APR on purchase and balance for the first 15 months. All in all. This card comes with a lot of benefits and a very little fee, so it is one of the best second credit cards.
Features
- Required Credit Score: Average to Good
- Annual Fee: $39
- Welcome Bonus: N/A
- Regular APR: 29.74% (Variable)
- Foreign Transaction Fee: None
- Rewards: 1.5% Cashback on all purchases and 5.00% Cashback on selected bookings
Pros
- They do not charge any foreign transaction fee.
- A good option for average credit score holders.
- They offer 1.5% cash back on all purchases.
- Unlimited and non-expiry rewards.
Cons
- The high annual fee for low credit score holders.
- They do not offer any introductory bonus.
- There is no welcome bonus.
Top Second Chance Credit Cards With Secured Deposit
1. First Progress Platinum Select MasterCard Secured Credit Card
If you are looking for the best second credit cards and are willing to pay a security deposit then you can definitely go with First Progress Platinum Select MasterCard Secured Credit Card. In order to get this credit card, you might have to pay a security deposit of $200 to $2,000, depending on your credit score.
Moreover, your credit limit is going to depend on your security deposit, so if you want a higher credit limit, you can pay a higher security deposit. Though you would not be able to earn rewards with this credit card, the annual fee is just $39 and the regular APR is just 18.24%.
Features
- Preferred Credit Score: Bad or No credit history
- Annual Fee: $39.00
- Regular APR: 18.24% (Variable)
- Welcome Bonus: N/A
- Rewards: None
- Security Deposit: $200 to $2,000
- Foreign Transaction Fee: 3.00%
Pros
- Low regular APR and annual fee.
- Offers free access to FICO score.
- Easy application and approval process.
- Good for credit building.
- Bad credit holders can get this credit card.
Cons
- There are no rewards.
- A high balance transfer fee is there.
- No welcome bonus is available.
2. OpenSky Secured Visa Credit Card
The OpenSky Secured Visa Credit Card is a second chance credit card for building your credit score. But to get this credit card, you will have to pay a minimum security deposit of $200 which can be up to $3,000. Also, your credit limit is equal to your security deposit, so if you want to get a higher credit limit, pay a higher security deposit.
OpenSky reports all your credit activities to all three credit bureaus including TransUnion, Equifax, and Experian, so if you use this credit card responsibly, you will be able to improve your credit score. This credit card comes with an annual fee of only $35 and a regular APR of 21.14% (variable).
Features
- Preferred Credit Score: They do not conduct a credit check
- Annual Fee: $35
- Regular APR: 21.14% (Variable)
- Welcome Bonus: N/A
- Security Deposit: $200 to $3,000
- Foreign Transaction Fee: 3.00%
Pros
- They do not conduct a credit check.
- Good for building credit.
- One of the best second chance credit cards out there.
- You do not need a bank account to get this credit card.
- The credit limit is equal to the security deposit.
Cons
- There is no welcome bonus.
- There is no low introductory APR.
- It is not a no-interest credit card.
3. First Progress Platinum Prestige MasterCard Secured Credit Card
The last credit card in our list of the best 2nd chance credit cards is the First Progress Platinum Prestige MasterCard Secured Credit Card. It comes with an annual fee of $49.00 and a regular APR of 14.24%. To get this credit card, you will have to pay a security deposit of $200 which can be up to $2,000 for bad credit holders.
This card does not offer any rewards, cashback, or low introductory APR but since the regular APR is very low, this credit card is totally worth it. Even if you have been through bankruptcy, this credit card will help you build your credit score. Also, keep in mind that you will not get any welcome bonus with this credit card.
Features
- Preferred Credit Score: Bad or Low
- Annual Fee: $49.00
- Regular APR: 14.24% (Variable)
- Welcome Bonus: N/A
- Introductory APR: N/A
- Security Deposit: $200 to $2,000
- Foreign Transaction Fee: 3.00%
Pros
- The APR is very low.
- Bad credit holders can also get this credit card.
- Helps you build your credit score even after bankruptcy.
- You can apply for pre-qualification with a soft credit inquiry.
- Reports your credit activity to all three credit bureaus.
Cons
- There are no rewards.
- High annual fee and foreign transaction fee.
- They do not offer any welcome bonus or low introductory APR.
How to Select the Best Second Chance Credit Card?
If you want to select the best second-chance credit card with no security deposit or with a security deposit, then make sure that you consider the following points before making your final decision.
1. Credit Reporting
If you are going for second chance credit cards, it is very clear that you want to build your credit score. So go for a credit card that instantly or at least regularly reports all your credit activities to all three major credit unions including, Experian, TransUnion, and Equifax. If your credit card does not report to all three credit bureaus then you would not be able to build your credit score.
2. Annual Fee
If you are going for an unsecured credit card and you have a bad credit score then it is okay to go for a credit card with an annual fee of up to $75. But if you are planning to go for a secured credit card then we would not recommend you to go for a credit card with an annual fee of more than $40 to $50. Because since you are going for second-chance credit cards, there are very less chances of getting rewards or cash back, so if you pay a higher annual fee, you are simply just wasting your money.
3. APR
Generally, the interest rate for second chance credit cards is high, so in order to save some money, make sure that you go for a credit card with a low annual percentage rate. If you are going for an unsecured credit card then the annual percentage rate of 30.00% would be okay and if it is a secured credit card then the annual percentage rate of 25.00% would be just okay. Do not go for a higher APR than this.
4. Extra Fee
Along with APR, interest rate, and annual fee, other fees also matter a lot. Some credit cards may charge low annual fees along with high foreign transaction fees, balance transfer fees, etc. So make sure you consider all the fees that might matter to you and then make your final decision.
How to Make the Best Out of Second Chance Credit Cards?
In this section, we are going to give you some tips and tricks so that you can make the best out of your credit card. If you follow these points, just within a small amount of time, you will be able to build your credit score.
1. Try to Stay Within the Credit Limit
When you get your second chance credit card, you need to take care of the credit utilization ratio. Try to maintain a low credit utilization ratio. You should never cross the credit limit of your credit card, but you need to be extra cautious within the first few months.
2. Pay the Bills on Time
Do you know that 30% of your credit score depends on whether you pay the bills on time or not? So make sure that you pay your credit card bills on time. You can go for the autopay option, where on the bill payment day, the bill amount is automatically deducted from your bank account or debit card. In case your credit card company does not offer autopay, you can ask them to send you timely reminders or you can set a reminder yourself as well.
3. Keep the Rewards Categories in Mind
When you get a second chance credit card, it comes with a small credit limit. So you need to use your credit card wisely. If your credit offers you rewards on certain categories then try to use your credit card for those categories only. This way, you would limit your credit card as well as earn rewards.
Frequently Asked Questions (FAQs)
Q1. Why do I need a second-chance credit card with no security deposit?
You need a second-chance credit card with no security deposit because it gives you another chance to work on your mistakes and improve your credit score. By using these credit cards properly, you can boost your credit score within just 6 months.
Q2. Why do your credit cards deserve a second chance?
Your credit cards deserve a second chance because if you use them wisely and responsibly, they can actually help you in building your credit. Also, credit cards are perfect for all your urgent monetary needs.
Q3. What are the best second-chance credit card companies?
Some of the best second-chance credit cards are offered by Surge, Capital One, and First Progress. If you are looking for second chance retail credit cards then you can also go with Total Visa Card.
Whether a Second Chance Credit Card With No Security Deposit Worth it?
A second-chance credit card with no security deposit is completely worth it, but only if you use it responsibly. You should limit your credit card use to only reward categories and pay the bills on time. Otherwise, it can get you into trouble. Additionally, make sure to consider important factors such as credit reporting, annual percentage rate, annual fee, etc., when selecting second-chance credit cards.
Author Profile
- Elizabeth Jones is one of our editorial team’s leading authors on credit card offers, services & more. With over two decades of experience in the consumer credit industry and as a nationally recognized credit expert, Elizabeth provides in-depth analysis of both traditional & alternative forms of credit. Elizabeth regularly appears on many major media outlets including NBC Nightly News, Fox Business Network, CNBC & Yahoo! Finance. She is also a frequent contributor to Forbes Magazine. As a highly appreciated author for our exclusive Editorial Team, Elizabeth strives to provide readers with a trustworthy advice on how to manage their credit accounts while staying informed on the latest offers in the marketplace.
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