Find a Second Chance Credit Card with No Security Deposit

Second Chance Credit Card with No Security Deposit

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A second chance credit card is designed specifically for people with bad credit. And, fortunately, there are several options available, with some not even requiring a security deposit.

Here are our top five picks, including key details like introductory APR, annual fees, rewards, and more, along with answers to frequently asked questions. 

Comparison of the Top 5 Second Chance Credit Cards with No Security Deposit

Credit CardIntroductory APRAnnual FeeForeign Transaction FeesRewards
Indigo24.9%$75 the First Year and $99 Thereafter1% Per PurchaseUnlimited 1.5% Cash Back
Petal 1 22.24% – 31.74%NoNo2% – 10% Cash Back 
Grow Credit 0%Varies by PlanNoNone
Self Visa Card26.24%$25NoNone
Tomo0%No No1% Cash Back

Indigo

Source: Indigo

Indigo is hands down one of the most lenient second chance credit card options.

It’s an unsecured credit card with no security deposit that offers simple pre-qualifications that won’t impact your credit score.

Getting pre-approved is fast and easy. Just fill out a basic form with your contact information, birthday, and Social Security number, and Indigo will let you know what you qualify for. 

Source: Indigo

Forgiveness is baked into this unsecured credit card. And because Indigo reports monthly payments to three major credit bureaus, it’s an excellent way to turn your credit history around and start rebuilding credit. 

It also offers unlimited 1.5% cash back, which is a nice plus on top of everything else. 

Note, however, that there are a few drawbacks to using this credit card, with one being the 24.9% introductory APR.

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That’s considerably higher than most traditional credit cards, so it’s crucial to use this second chance credit card responsibly. 

There’s a $75 annual setup fee and a recurring $99 annual fee after that for maintenance. 

Indigo charges a cash advance fee of $5 or 5% of the transaction, with the maximum being $100. 

There are also some stiff penalties like up to $40 for late payments, returned payments, and over limits. 

Finally, there’s a 1% fee on foreign transactions.

So it’s important to see the big picture before applying for this credit card. That said, it can certainly be a good option if you have less than perfect credit and use it wisely. It can also double as a business credit card. 

Try Indigo

Petal 1

Source: Petal 1

Petal 1 from Visa has a very forgiving philosophy, making it ideal for people with bad credit but who are ready to get back on track. 

In their own words, “Credit scores don’t tell the whole story. Petal 1 can look beyond your credit score to create a Cash Score based on your banking history. Your Cash Score shows your creditworthiness and can help you qualify for more credit at better rates.”

So even with a long history of bad credit, Petal 1 can be the perfect credit card issuer to help you turn the corner. 

And there are some serious advantages of using Petal 1. 

For starters, it’s an unsecured credit card, meaning you don’t have to pay a security deposit.

There are no annual fees or foreign transaction fees.

There’s an AutoPay feature that will automatically pay your balance so you never miss a payment and get hit with late fees. 

And Petal 1 offers 2% to 10% cash back at many popular merchants, making it one of the better cash rewards credit card options. 

Credit Karma even lists them as one of their favorite second chance credit cards. 

While the credit line is limited to $300 to $5,000 initially, this can be increased after six months through Petal’s Leap program as long as you consistently make payments on time and maintain a solid credit score. 

Source: Petal 1

Also, you can connect your Petal credit card to Apple Pay or Google Pay (no Cash App at the moment) for added convenience when making purchases. 

When it comes to introductory APR, it ranges between 22.24% and 31.74%.

While that’s admittedly high, especially as you approach 30% or more (the current US average is 20.82%), Petal 1 can be a great unsecured card for many people when used responsibly and can help build credit. 

Try Petal

Grow Credit

Source: Grow Credit

This is one of the more unique credit cards, as it’s designed specifically for paying subscriptions like Spotify, Netflix, and Hulu. 

While it’s probably not viable if you need a serious credit line (the basic membership plan has just a $17 monthly spending limit), it can work if your main goal is to build good credit. 

With Grow Credit reporting to the major credit bureaus, you can use it as a credit builder to quickly improve your credit score and get into a better financial situation. 

And if you already use subscription-based services like we just mentioned, you can set up automatic payments to gain momentum with basically zero effort. 

Here are the key details.

Grow Credit has four types of plans. 

The Build plan is completely free to use but only has a $17 monthly spending limit ($204 annually). For those who don’t meet the Build underwriting criteria, however, the plan costs $1.99 per month. 

The Grow Membership plan costs $3.99 per month and has a $50 monthly spending limit ($600 annually). 

And the Accelerate Membership costs $7.99 per month and has a $150 monthly spending limit ($1,800 annually). 

You also need a checking account for identification purposes. 

Note that Grow Credit does not charge interest, making it a second chance credit card with no security deposit and 0% APR. 

Source: Grow Credit

Given how unconventional this unsecured credit card is, we can’t say it’s for everyone, especially if you want a large credit limit.

Also, having monthly membership costs can, admittedly, be a turnoff.

But if you’re looking for a simple way to bolster your credit score (an improvement is usually noticeable within 60 to 90 days), this is certainly an option to consider and can help improve bad credit. 

Try Grow Credit

Self Visa Card

Source: Self Visa Card

Let us be totally transparent about the Self Visa Card

It’s technically an unsecured credit card that doesn’t require a security deposit. But there’s a caveat. 

To be eligible, you must first sign up for a credit builder account with Self.

Then you must reach at least $100 in saving progress and make your last three monthly payments on time without any outstanding fees. 

At that point, you choose how much to use as your security deposit, which will set your credit limit. 

Self will then send you your credit card, and you’re on your way to tackling bad credit and improving your credit score

Source: Self Visa Card

Self Visa Card reports to the three major credit bureaus, and it can be the catalyst for achieving a better credit history.

And as long as you continue to make your payments on time, you may have opportunities to increase your credit limit in the future. 

While the process of getting accepted for this credit card is a little convoluted, we still consider it one of the best credit cards without a credit check overall. 

As for interest, there’s a 26.24% variable APR. There’s also a $25 annual fee and no rewards. 

If you have fair credit, this may not be the best second chance credit card for you. 

But if you have bad credit and are looking for an effective way to break the debt cycle, it’s definitely worth considering. 

Try Self

Tomo

Source: Tomo

Tomo is one of the more innovative second chance credit cards and offers some serious selling points. 

For starters, there’s 0% APR and no fees.

Next, they don’t look at your credit score to determine eligibility. 

Or as Tomo puts it, “you are worth more than just a number (aka an arbitrary credit score). We evaluate individual circumstances and take into account alternative metrics to determine your credit worthiness.”

There’s up to $10,000 in spending power, which is light years above many similar second chance credit cards. 

They also offer some robust rewards from brands like Doordash, Hello Fresh, Lyft, and more.

While the 1% cash back rewards rate is below average for most credit cards, it’s still solid for a second chance credit card. 

Source: Tomo

And like many of the other credit card providers, they report to all the major credit bureaus, which means you can build credit with Tomo and raise your credit score.

They even offer expedited and automated payment options to get the ball rolling even quicker. 

If you’re looking for a highly inclusive second chance credit card with some enticing features, Tomo should definitely be on your radar. 

Try Tomo

How We Picked These Cards

The main thing we based our choices on was leniency. 

Each credit card mentioned is extremely lenient on bad credit and doesn’t perform a credit check.

And as long as you use your card responsibly and consistently make payments on time, it can also help you build credit. 

While that often means a higher APR than what you find with traditional credit cards, as is evident with Indigo, Petal 1, and Self Visa Card, it provides an opportunity for those with bad credit to improve. 

The other biggest factor was no security deposit.

While a Self Visa Card does operate like a secured credit card in the sense that it requires you to reach at least $100 in saving progress, it’s technically an unsecured credit card. 

And all of the other options serve as a second chance credit card with no security deposit in every sense of the word. 

Beyond that, we factored in fees, rewards, and overall user satisfaction. 

After crunching the data, these were the top second chance credit cards we came up with. 

FAQs

How Can I Get a Credit Card with No Security Deposit?

You just have to find a card issuer that doesn’t include a security deposit as part of their eligibility process.

Fortunately, there are plenty of credit cards that don’t require a security deposit, including many unsecured credit card providers.

All of the credit cards mentioned on this list fall under that category. 

What Credit Card Has No Security Deposit?

Indigo, Petal 1, Grow Credit, and Tomo have no security deposit whatsoever. 

The Self Visa Card doesn’t have one either. However, they do require you to reach a minimum of $100 in saving progress before gaining eligibility. 

This means that, unlike a secured credit card, you don’t have to put up any collateral to be approved. Instead, a card issuer will look at other factors like individual circumstances.

If you’re curious about finding the best secured credit card, you can get a full overview here

Will Credit Card Companies Give You a Second Chance?

Yes! 

There are several companies that won’t look at your credit history or credit report when determining eligibility. 

This makes an unsecured credit card ideal if you have bad credit and want to improve your credit score. 

Note that, however, in many cases, this can translate into a higher APR or lower borrowing limits (a secured credit card, by comparison, will tend to have a slightly lower APR). 

But it’s definitely possible without a credit check, and many companies will extend their borrowing limits as you prove yourself trustworthy. 

It can also serve as a great credit builder account to gain momentum. 

Can You Get an Unsecured Credit Card After Bankruptcy?

Yes, it’s possible to get an unsecured credit card after bankruptcy. 

However, bankruptcy makes it significantly more difficult to get approved for a credit or debit card and often comes with extra fees and low credit limits.

But if you stay the course and prove yourself to be a trustworthy borrower, you can often move past bad credit.

Note that if you’ve filed for bankruptcy, you may be better off looking at secured cards, as a secured card tends to be easier to obtain.

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