Are you looking for Credit Cards for 400 Credit Score No Deposit? If yes, You are at the right place.
In this article, We are sharing all the information about best Credit Cards for 400 Credit Score No Deposit.
When your credit is less-than-perfect, with a score typically hovering near 400, you’re generally limited to just two types of credit cards. The first type is secured credit cards. Unlike standard, unsecured credit cards, these cards require you to deposit a refundable security deposit before opening an account.
Unsecured credit cards are another option for people with bad credit. No security deposit is required, but fees are associated with these cards. Due to the inherent higher risk of lending to borrowers with bad credit, such cards typically carry higher interest rates and annual charges than those aimed at individuals with high credit scores.
The process of building credit starts somewhere for everyone. Even with a credit score of 500 or less, there’s significant room for growth. Strategic efforts, such as building or rebuilding credit, can accelerate this growth. If your credit score could be better isn’t, you still have many options for good credit cards.
Several credit cards designed for those with a 500 credit score or less come with tools to help build your credit; some might even offer rewards. If you choose the cards shown here, you can build better credit in the future.
The process of getting a credit card may seem daunting if you have bad credit or no credit at all. Even if you have a low credit rating, there are options for you, both secured and unsecured loans.
What Is a Guaranteed Approval Credit Card With No Deposit?
- 1 What Is a Guaranteed Approval Credit Card With No Deposit?
- 2 Best Credit Cards for 400 Credit Score No Deposit
- 3 How Do You Choose a Credit Card for Bad Credit?
- 4 How to Improve Your Bad Credit?
- 5 Can I Get a Business Card With Bad Credit?
- 6 Alternatives to Credit Cards to Raise Your Credit
- 7 FAQs
Guaranteed approval refers to credit cards with low credit scores and income requirements. No card on this planet guarantees approval of your application. It is best to apply or submit a prequalification form immediately to get an instant decision.
It is important to note that prequalification is different from approval. The card issuer is not obligated to grant you the card merely because you fulfill the initial requirements. A “no deposit” credit card is an unsecured credit card. Therefore, you do not need a security deposit to secure your credit limit.
Best Credit Cards for 400 Credit Score No Deposit
If you apply with the right credit card company, you can still qualify for a credit card even if your credit score is below 450. Some credit card companies offer subprime, secured, and retail store cards to consumers with such credit scores. There are benefits and drawbacks to each.
PREMIER Bankcard Grey Credit Card
A PREMIER Bankcard Grey Credit Card may be approved with scores as low as 400. After the first year, the card charges a monthly, annual, and one-time program fee. You can boost your credit score with this card over time by making consecutive on-time payments, but that is the price of having a poor credit score.
Surge Platinum Mastercard
An unsecured credit card option that accepts poor credit applicants is the Surge Platinum Mastercard. You’ll need a minimum credit score to qualify, and you’ll be able to strengthen your credit history when you use the card responsibly since the account is reported to the three national credit bureaus. Before applying, you can check the issuer’s website to see if you qualify.
Mission Lane Visa Credit Card
Mission Lane Visa Credit Card may be a great option for individuals with bad credit who want a credit card that doesn’t require a security deposit. A minimum line of credit is $300, and the annual fee ranges from $0. Depending on your credit score, you may not pay an annual fee if it is not as bad as you thought. Despite this, there is no security deposit required for an unsecured card. This card has no rewards, and it has a foreign transaction fee of 3%.
The Prosper Card is an option for people with bad credit that does not require a security deposit. The annual fee is only $39 (free the first year if you enroll in AutoPay before your first statement). You can also access 50% of your total available credit while waiting for the card to arrive. You can also increase your credit line with Prosper by regularly reviewing your credit.
Credit One Bank Platinum Visa
Platinum Visa For Rebuilding Credit is a credit card offered by CreditOne Bank for people with bad credit. It offers 1% cash back rewards on eligible purchases. In addition to gas, groceries, mobile phones, internet service, and cable and satellite TV, qualifying purchases can include gas, groceries, mobile phone service, and internet service. The annual fee for this card is $75 the first year and then $99 the next year. You may qualify for a fair credit card within a year if you pay your bills on time and carry little debt.
How Do You Choose a Credit Card for Bad Credit?
- Identify Your Exact Credit Score. Many factors affect your credit score, including the types of credit cards you’re eligible for. You can use your credit score to navigate which credit cards you may be able to apply for and also to avoid damaging behaviors, such as applying for too many credit cards too quickly.
- Keep in Mind the Fees. Many credit cards for poor credit come with the requirement to pay more upfront as collateral to obtain a line of credit. On secured credit cards, collateral is usually provided via security deposits; on unsecured cards, it is usually in annual fees. It is possible for a card to require both. In addition, credit cards for people with bad credit tend to have high ongoing interest rates and rarely offer introductory rates. It’s best to avoid cards that require an annual fee and a security deposit because they have a higher ongoing interest rate.
- Make Credit Building a Priority. When you have fair to bad credit scores, credit cards may help you improve your score if you use them wisely. Your credit-building progress will be tracked if you choose a credit card that reports to the major credit bureaus. Increase your credit limit or choose a card with options to graduate to a more lucrative or unsecured card if you want to encourage good credit habits.
How to Improve Your Bad Credit?
Your credit score plays a major role in what types of credit cards you are eligible for. You are more likely to access higher-quality cards when your credit score improves. For cards geared toward people with credit scores of 500 or less, you won’t have to spend as much on collateral requirements once you become a low-risk borrower.
Your ongoing interest rate is another important factor to consider. The interest charges on credit cards are the most constant part of the card, and carrying a balance can often be expensive. A better credit score increases your chances of obtaining a lower interest rate. Following a few tips will help you build your credit consistently over time and achieve a better score.
- Make Sure You Pay on Time. Credit scores are based on 35 percent of your payment history, and missing a payment can significantly affect your score. Ensure you always pay your bills on time by setting up automatic payments or adding a reminder to your calendar.
- Keep Your Credit Utilization Ratio Low. Only use your credit card for budgeted outings or set up recurring bills to use a small amount of your available credit. It is important to note that your credit utilization ratio accounts for the second largest percentage of your credit score after your payment history; if your credit utilization ratio is low, lenders will see that you aren’t overly dependent on your credit card for financial security and that you are managing your credit responsibly.
- Watch your credit report. Ensure you read your credit reports carefully and pay attention to any errors, such as an unknown employer or an incorrect middle initial. Your credit score can suffer from errors like these, which could reveal that you are the victim of identity theft. Therefore, it’s best to always stay on top of your finances.
- Keep your starter credit card. Your credit history is also an important component of your score; the more time you have had a credit history, the better. You will often boost your credit score with your starter credit card much longer after you outgrow it. If you don’t use the card or graduate to a better card, keep the account open (as long as there are no maintenance fees).
Can I Get a Business Card With Bad Credit?
Small businesses with good credit can apply for a handful of credit cards, although they may need to become more familiar with them. There are two subprime cards that business owners might consider. Among them, one is secured, which means you’ll have to deposit:
- OpenSky Secured Visa Credit Card: The card isn’t specifically for business owners but appears readily approved. There is no hard credit check, so you can get the card without submitting a credit check ($200 to $3,000).
- Credit One Bank Platinum Visa for Rebuilding Credit: A business credit card offering rewards on WiFi, cellphone service, cable, satellite, and cable TV services, along with gasoline purchases. You can get a credit limit between $300 and $3,000.
A personal guarantee is almost always required from business owners for business credit cards. As a result, businesses are personally liable for any unpaid balance on their credit cards, and credit card companies can access their assets in court for nonpayment.
Alternatives to Credit Cards to Raise Your Credit
Besides showing that you are responsible for paying off the credit card, there are other ways to boost your credit score if you have bad credit. Here are some alternatives to credit cards you may want to consider.
Take Out a Debt Consolidation Loan
Consolidation loans are installment loans rather than revolving credit lines. A debit card does not appear in the same category as a credit card on your credit report. Your credit history is strengthened when you make on-time payments, and your credit utilization ratio is improved because your credit card balance is reduced to zero when you pay in installments.
Set Payments to Auto-Pay
If you haven’t already, make sure your payments are set up. On-time payments are so valuable because they make up 35% of your credit history. The last thing you’ll have to worry about is being late if you set up auto-pay.
Keep Older Accounts to Lengthen Your Credit History
You should avoid a few things if you want to manage your finances. Keeping older accounts open is one of the best things you can do. Your credit history influences your credit score depending on how long you have had your accounts. It is important to be careful when closing accounts. It’s important to consider whether you prefer to close an account if you are having difficulties spending on it.
Choose Credit Carefully
A credit score is calculated based on the number of new credit inquiries you receive. Your credit score may be negatively affected if you apply for numerous credit lines within a short period. However, it is important to remember that they recognize that some inquiries are normal, so be careful when applying for credit. Prequalifying with a lender who offers a soft credit check, which will not be visible on your credit report, might be a good idea.
Pay Down Balances
You should keep your revolving credit balances under 30%, if not lower, for the best credit scores. A lower credit utilization ratio can improve your credit score when you pay down your balances.
Do Unsecured Cards Build Credit Scores?
Using unsecured credit cards (just as secured ones) will help you build your credit score if you pay your debt on time. It’s important to avoid accumulating debt with these cards, as the APR is typically quite high.
How Can I Get Approved for a Credit Card with Bad Credit?
The only credit cards designed specifically for applicants with poor credit should be applied for. Even with a significant annual fee or security deposit, you may still be approved for one of these cards.
Can I Get a Credit Card with a 500 Credit Score?
Those with 500 credit scores may be interested in secured credit cards that can be issued to users regardless of their credit scores.
Can I Prequalify for Credit Cards with Bad Credit?
Some credit cards offer prequalification, or preapproval, for people with bad credit. It is typically possible to prequalify for a credit card without negatively affecting your credit.