Aiming for Financial Freedom? Explore These Credit Card Alternatives if you're DeniedApproval
In the world of finance, having a good credit score is essential for accessing various financial products, including credit cards. However, for many individuals with no credit history or poor credit, traditional credit cards can be hard to come by. Fortunately, alternative credit cards are stepping in to fill the gap.
These alternatives cater to individuals with no credit, limited credit, or bad credit. Some popular options include secured credit cards, starter credit cards, and unsecured credit cards designed to help build or rebuild credit. These cards often have features tailored to people with less established or poor credit histories.
Secured credit cards, such as the Discover it® Secured Credit Card and Capital One Platinum Secured Credit Card, require a refundable security deposit as collateral and report to major credit bureaus. They usually have no or low annual fees and offer a pathway to upgrading to unsecured cards.
For those who don't want to undergo a credit check or provide a security deposit, no credit check secured cards like the Chime Credit Builder Secured Visa Card are available. These cards, such as the Chime Secured Credit Builder Visa® Credit Card, don't require a credit check or minimum security deposit. Instead, the cardholder moves money into a secured account to set their spending limit. They have no fees or interest and report to all three major credit bureaus, making them ideal for beginners.
Unsecured credit cards for bad credit, like the Prosper® Card, don't require a security deposit but may charge an annual fee. These cards can help rebuild credit with responsible use and provide opportunities for credit limit increases.
Innovative unsecured cards for no credit, such as the Petal® 2 Visa® Credit Card, use machine-learning models to underwrite applicants beyond traditional credit scores. They don't require deposits, offer cash-back rewards, and do not charge late or foreign transaction fees. These cards also report to the major credit bureaus, helping build credit history for no-credit individuals.
Other alternatives include starter cards designed for students or individuals with limited credit, gas cards, and store cards, which are easier to get but may have higher APRs and less favorable terms.
The Zolve Classic Credit Card, for instance, allows qualification without a Social Security number, but with alternative documentation such as an I-20 for students or offer letters or pay slips for workers. It has no annual fee and doesn't require a security deposit or credit history.
American Express credit cards can be options for immigrants and expats in the United States with no credit history, thanks to a feature that can translate eligible international credit reports into U.S.-equivalent credit reports, limited to select countries.
Even with bad credit, limited credit, or no credit at all, there are options for alternative credit cards. The Grow Credit Mastercard, for example, is ideal for those with no credit or poor credit (FICO scores of 629 or below). The Arro Card, issued by Community Federal Savings Bank, doesn't require a credit check or an upfront security deposit.
The Current Build Card doesn't charge interest and doesn't require a credit check or upfront security deposit. The Varo Believe Secured Credit Card requires a security deposit but gives the cardholder flexibility to choose the amount. The Arro Card charges an annual membership fee of $36, which might be discounted the first year depending on the starting credit line.
In summary, the best current alternatives to traditional credit cards for those with no, limited, or bad credit are mostly secured credit cards and some innovative unsecured cards that do not rely strictly on credit scores and offer supportive terms for credit building, such as the Chime Credit Builder Card, Discover it Secured, and Petal 2 Visa. These cards can help individuals build or rebuild their credit and gain access to more financial opportunities.
- Secured credit cards, like the Discover it® Secured Credit Card and Capital One Platinum Secured Credit Card, are alternatives that cater to individuals with no credit, limited credit, or bad credit, requiring a refundable security deposit as collateral.
- For those who don't want to undergo a credit check or provide a security deposit, no credit check secured cards, such as the Chime Credit Builder Secured Visa Card, are available, with no fees or interest and reporting to all three major credit bureaus.
- Unsecured credit cards for bad credit, such as the Prosper® Card, don't require a security deposit but may charge an annual fee, helping rebuild credit with responsible use and providing opportunities for credit limit increases.
- Innovative unsecured cards for no credit, such as the Petal® 2 Visa® Credit Card, use machine-learning models to underwrite applicants beyond traditional credit scores, offering cash-back rewards, and not charging late or foreign transaction fees.
