The Best Credit Cards With No Security Deposit

The Best Credit Cards With No Security Deposit

What Are Credit Cards With No Security Deposit?

Credit cards with no security deposits include most normally-issued cards that don’t include secured ones. Secured credit cards require either a deposit to the card issuing bank or linking a dedicated account directly to the card. Secured credit cards are good for building or rebuilding credit and offer some features that can make them worthwhile for the purpose. Other types of cards for fair credit also exist, including the best balance transfer cards to help consolidate debt.

However, the credit cards in our review require no security or other deposits, are designed for those with low credit scores or short credit histories, and qualify as non-secured credit cards that can help build or rebuild credit profiles. The cards we feature here offer low approval requirements to help begin your credit journey or rebuild damaged credit scores.

Features of the Best Credit Cards With No Security Deposit

The most fundamental feature of the best credit cards with no security deposit is the ability for those with lower credit scores or short credit histories to qualify for the card and its benefits. Most of the best options provide applicants with a pre-qualifying step.

The step requires applicants to input personal and financial information into the card company’s website. The company will then perform a soft credit inquiry, which won’t affect the client’s credit score or appear on future inquiries. After the inquiry, the customer will receive a notice stating their approval odds for the card and sometimes list the terms of approval.

Beyond those two aspects, the best credit cards that don’t require a security deposit may include some or all of the following features.

• Low or reasonable interest rate
• Low or reasonable monthly or annual membership fees
• Path to improved credit scores
• Introductory offers
• Cashback or other reward benefits
• Educational tools to help maintain a credit score
• Path to credit limit increases
• Mobile app to easily manage the card

How We Chose the Best Credit Cards With No Security Deposit

Credit cards with no security deposit include a long list of everyday credit cards designed for all credit score levels. While the best gas and grocery cards, rewards cards, and travel credit cards are typically reserved for those with good to excellent credit, the ones we feature as the best cards without a required deposit are geared towards those with low or no credit scores that still provide solid benefits to cardholders.

To that end, we examined over a dozen unsecured credit card options for consumers with less-than-average credit scores and chose the few that stood out from the crowd. Our deciding factors included ease of approval, rewards, demographic availability, related fees, interest rates, customer and expert reviews, ability to improve credit scores, educational materials, regular credit limit increase availability, and more minor editorial points.

After evaluating each card from each company, we tallied the points to compile our final list. Only credit cards that are worth considering made our list. The end result is a numeric compilation of various statistics.

While overall numbers are a good indicator of quality results, they don’t reflect the real-world needs of every consumer. We encourage you to look beyond the numbers when choosing the right card for you, using this review primarily as a guide.

What to Look For When Choosing a Credit Card With No Security Deposit

When searching for an unsecured credit card to help establish credit for the first time or repair a tarnished credit report, the first factor to determine is your approval odds.

Most, but not all, credit cards without a security deposit offer a pre-qualification step that allows you to get a feel for what cards you may qualify for. Pre-qualification can be an excellent starting point in your search. Here are other factors to consider when narrowing your choices.

• Low to moderate interest rate
• Low monthly or annual membership and other fees
• Rewards availability, if applicable
• Approval requirements that meet your financial and credit score standing
• Regular reviews for credit limit increases
• Three-bureau credit reporting
• Available educational materials to help discover how to maintain a credit score

Do I Need a Credit Card?

Credit cards can be powerful financial tools. However, they can also represent a path to financial trouble. A Federal Reserve Board report from 2022 states that 84% of Americans had a credit card as of 2021 and that around half of credit card holders carried a balance on their cards instead of paying it in full each month.

Considering the risk of financial danger that credit cards carry, it’s only appropriate to ask, do I need a credit card?

Having a credit card brings some convenient benefits, especially for those with good to excellent credit who can take advantage of cash-back offers, travel miles, and other perks. However, there are other benefits to card ownership as well.

Transaction simplicity and convenience are excellent reasons to use a credit card. Using a credit card is typically more convenient than using cash or writing a check for many purchases. Credit cards also make online shopping much more accessible.

Perhaps the biggest reason to obtain a credit card is to establish credit or help rebuild damaged credit. However, managing the card responsibility is essential to realize positive results and avoid going too deep into debt.

When establishing credit, or any time, the best way to manage a credit card is to avoid charging items up to or over your credit limit and pay the balance in full and on time each month to avoid interest charges and potential fees.

Other Credit Options

Check out recent reviews on credit cards and personal loans:

• Amex Blue Cash Preferred
• Citi Custom Cash Card
• Top Rated – Chase Freedom Unlimited
• Check top-rated personal loans for free at Credible

Consider Top-Rated Personal Loans for Fair Credit

Source: TrustedCompanyReviews.com, Top-Rated Personal Loans Review

What’s the Best Credit Card With No Security Deposit?

Our review states that the Mission Lane card is the best credit card with no security deposit and is designed for those with lower-than-average credit scores. We chose the card because it’s widely available to a large portion of the population, features low approval requirements, has a reasonable APR, and several other factors.

However, everybody’s financial picture is different, and the best overall card may not be the one that suits your needs best. Because of that, we’ve included all the most essential information about the top four credit cards with no security deposit to help you make an informed decision.

Mission Lane Credit Card

Trusted Company Reviews Rating Score for Mission Lane: 9.2

About the Card

The Mission Lane credit card is an unsecured card for those with fair and lower credit scores or who lack a credit history. The card is excellent for establishing or rebuilding credit and features a high, but not outrageous, interest rate. Mission Lane is available everywhere and has low approval requirements.

The company offers no rewards program or introductory offers. However, no security deposit is necessary, and its annual fee of between $0 and $59 is reasonable. Mission Lane regularly and automatically reviews every account for credit limit increase eligibility, and the company’s mobile app makes managing the card simple.

Features and Benefits

• APR 19.99% – 29.99%
• No intro offers or rewards program
• No security deposit needed
• No or low ($0 – $59) annual fee
• Typical starting credit limit of $300
• Credit limit increase potential within the first year
• Automatic regular credit limit evaluations
• Pre-qualification won’t affect credit score
• Mobile app available
• Free credit score access in the mobile app
• 3% foreign transaction fees
• $10 or 3% cash advance fee
• Cash advance limit of 25% of credit limit
• Late payment fees of $25 and $35 for the second occurrence in 12 months

Why We Chose Mission Lane

While the Mission Lane card doesn’t offer the best benefits of the cards in our review, we chose it for its availability to a wide demographic, ease of application, automatic account reviews, generous starting credit limits of $300 and up, low fees, and solid reviews. It’s the best all-around credit card with no security deposit for the largest number of consumers.

Pros and Cons

Pros

• Pre-approval won’t affect your credit score
• Informational website with credit-building advice articles
• No security deposit is necessary
• Potential credit line increases
• No or low annual fee depending on credit history

Cons

• High average APR (variable)
• No intro bonuses or rewards program
• 3% foreign transaction fee

Full Review

Capital One SavorOne Student Cash Back

Trusted Company Reviews Rating Score for Capital One SavorOne Student: 9.1

About the Card

The SavorOne Student card offers many features found with credit cards designed for those with well-established credit. Cash-back benefits include 3% cash back on dining, entertainment, streaming, and groceries; 1% cash back on most other purchases; up to 8% cash back on select entertainment services; and 5% cash back on hotels and rental cars through Capital One Travel.

Capital One customers can also receive a host of other benefits the company offers, such as travel insurance, fraud protection, and more. The SavorOne card is also an excellent financial tool for building credit that doesn’t require a deposit.

While those qualities would put the card squarely near the top of any list of excellent credit card options for beginners,  it’s only available to students and soon-to-be students.

Features and Benefits

• APR 19.99% – 29.99%
• No rewards limits
• Must be a student or future student to qualify
• No security deposit needed
• No annual fee
• $50 bonus after $100 of purchases in first 3 months
• Rewards don’t apply at superstores
• Multiple additional card benefits
• 3% cash back on dining, entertainment, streaming, and groceries
• 1% cash back on other purchases
• Up to 8% cash back on select entertainment services
• 5% cash back on hotels and rental cars through Capital One Travel
• Reports to all three major credit bureaus
• Pre-qualification won’t affect credit score
• Mobile app available
• Free credit score access in the mobile app
• No foreign transaction fees
• $3 or 3% cash advance fee
• 4% balance transfer fee
• 630 credit score needed for approval
• Travel accident insurance included
• Late payment fees of up to $40

Why We Chose Capital One SavorOne Student

The Capital One SavorOne Student Cash Back credit card’s benefits are better than those of others on our list. There’s no doubt that it belongs high on our list. However, its limited availability to students only places it second behind a more widely available option.

Pros and Cons

Pros

• Generous rewards program
• No security deposit is necessary
• Pre-approval won’t affect your credit score
• No annual or foreign transaction fees
• Multiple additional benefits are available

Cons

• Superstore purchases aren’t eligible for rewards
• Must be a student or future student to qualify

Full Review

Petal 1 Credit Card

Trusted Company Reviews Rating Score for Petal 1: 8.8

About the Card

The Petal 1 card and other cards in the Petal family feature rewards benefits typically reserved for credit cards issued to those with good to excellent credit. While the rewards are somewhat limited, they’re a nice perk when building or reestablishing your credit.
Petal 1 offers between 2% and 10% cash back at rotating select merchants that members can identify in the Petal App. There’s no annual fee for many cardholders. However, many customers pay an $8 monthly membership fee or up to a $59 annual fee.

Petal also provides an educational program called Leap that allows cardholders to take advantage of the company’s teaching and goal-setting materials to help them achieve credit-related financial goals.

Features and Benefits

• APR 25.24% – 35.74% (Variable)
• 2% to 10% cash back on select purchases
• No security deposit needed
• Credit score not necessary to qualify
• No or low ($0 – $59) annual fee
• $8 monthly membership fee may apply
• Offers a financial responsibility program
• Credit limits between $300 and $5,000
• Credit limit increase potential after 6 months
• Reports to all three major credit bureaus
• Pre-qualification won’t affect credit score
• Robust mobile app available
• Free credit score access in the mobile app
• No foreign transaction fees
• $10 or 3% cash advance fee, including money orders
• $50 maximum cash advance fee

Why We Chose Petal 1

Many credit cards, with or without a necessary security deposit, don’t feature any perks for the customer. We chose the Petal 1 card for offering a range of rewards for customers despite the need to continually check for the best deals.

While the rewards offered by Petal 1 are limited to specific vendors at certain times, those benefits combined with ease of use, low approval requirements, and low fees are enough for it to score highly in our review.

Pros and Cons

Pros

• Pre-approval won’t affect your credit score
• 2% to 10% cash back at select merchants
• No security deposit is necessary
• Potential credit limit increase after 6 months
• No or low annual fee depending on credit history

Cons

• Potentially high interest rate
• No intro bonuses or rewards program
• Monthly or annual membership fees may apply
• Balance transfers unavailable

Full Review

Arro Credit Card

Trusted Company Reviews Rating Score for Arro: 8.5

About the Card

Arro is working to change how we think about credit card approvals, especially for those looking to establish or rebuild their credit. Through its unique approval process and educational platform, Arro not only focuses on approving potential credit card holders with below-average credit scores but also rewards them for learning and developing financial skills that can allow them to increase and maintain their credit profiles.

While the Arro card comes with none of the bells and whistles of more traditional cards for those with good or excellent credit, the product can be a valuable and low-cost financial tool for establishing or rebuilding credit.

Features and Benefits

• Starting APR 16%
• $50 to $200 intro credit limit
• No credit check to qualify
• No hard inquiry on credit report for applying
• $1 monthly membership fee for the first year
• $3 monthly membership fee after first year
• No security deposit needed
• Credit limit increase potential in the app
• Instant card access after approval
• Financial education available to unlock added benefits
• Mobile phone and bank account needed for approval
• No rewards program
• No introductory bonus is available
• Reports to all three major credit bureaus
• Pre-qualification won’t affect credit score
• Mobile app available
• 3% foreign transaction fee
• $2,500 credit limit potential over time

Why We Chose the Arro Credit Card

We chose the Arro credit card for its unique approach to providing credit and offering benefits for learning about managing credit and debt. The card itself offers few perks. However, the long-term effect of credit education can be highly beneficial. The short-term impact of lowering the Petal 1 card’s APR and increasing the credit limit just for learning are also solid benefits and motivators.

Pros and Cons

Pros

• Low APR
• No security deposit is necessary
• Applying draws only a soft inquiry on your credit report
• Low monthly membership fees
• Educational app can help increase credit limit and lower interest rate

Cons

• Rewards program unavailable
• No introductory bonuses are available
• Low introductory credit limit

Full Review

Image Sources: arrofinance.com – capitalone.com – petalcard.com – missionlane.com