Can I get a credit card with no deposit?

Some credit cards, called secured credit cards, require a security deposit to open an account. But most credit cards don’t require a deposit. These are called unsecured credit cards. 

Find out more about how secured and unsecured credit cards work and how you may be able to get a no deposit credit card. 

What you’ll learn:

• Credit cards that require a deposit are referred to as secured credit cards. 

• Credit cards that don’t require a security deposit are referred to as unsecured credit cards. 

• Secured credit cards may be a good option for people who aren’t approved for unsecured cards.

• You can see whether you’re pre-approved for secured and unsecured cards before you apply, without affecting your credit scores.

Credit cards that don’t require a security deposit are called unsecured credit cards. They may be what comes to mind when people think about traditional credit cards. Cards that require a deposit are called secured credit cards. 

Secured cards function like unsecured cards, but the deposit acts as collateral and backs the borrower’s line of credit in case they’re unable to make the monthly payments.

Unsecured credit cards tend to offer better benefits and rewards. But secured cards typically have less-strict eligibility requirements because of the deposit. That can make them good options for people who aren’t as likely to be approved for unsecured cards.

If you’re building your credit, it still may be possible for you to get a no-deposit credit card. Here are four options to consider:

There are no-deposit credit cards specifically designed for people who are working on establishing or building credit. Some might even offer rewards. Capital One has credit cards for fair and building credit, including a few that offer cash back rewards.  

When someone you trust adds you as an authorized user, you’re given access to their credit card account. You may get your own card to make purchases, but the primary cardholder is ultimately responsible for charges made on the account. 

Authorized users generally don’t have to make a deposit to be added to an established credit card account. They usually don’t have to go through a credit check either. Keep in mind that responsible credit use is important for both the authorized user and the primary cardholder. Positive and negative actions can affect both people’s credit scores.

Student credit cards generally work the same as other credit cards, but they’re specifically designed for college students with limited or no credit history. Using a student credit card responsibly can help build good credit. And with a student credit card from Capital One, students can earn rewards on every purchase.

Improving your credit scores can take time and responsible use. That means doing things like making payments on time and keeping your balances low. So if you see companies offering quick fixes to boost your credit, it may be a scam.

As you build credit, you can monitor changes to your credit score by using CreditWise from Capital One. It’s free for everyone, and using it won’t hurt your credit score. You can also get free copies of your credit reports at AnnualCreditReport.com.

Here are some basic steps to consider before applying for a credit card with no deposit:

1. Evaluate different card options. Understanding which credit cards might be available to you can help you narrow down your options. It may also be helpful to consider your needs and financial goals. For instance, you might consider cards that let you earn cash back, bonus miles or other benefits that fit your lifestyle.

2. Check whether you’re pre-approved. Pre-approval could help you understand which credit cards you might be eligible for, compare options and find the right fit. With Capital One pre-approval, you can see whether you qualify for a credit card without impacting your credit scores.

3. Understand the credit card’s terms and conditions. Reviewing a credit card’s terms and conditions before you apply can help you avoid surprises once you become a cardholder. For instance, make sure you understand the card’s annual percentage rates (APRs), fees and promotional offers.

4. Find out what information you need. When you go through the application process, the credit card issuer might ask for your full name, birth date, legal address, Social Security number, annual income and employment status.

5. Choose your application method. There may be different ways to apply for credit cards, including online, over the phone, in person or by mail. Applying online is generally the quickest method. 

For a deeper dive into each of these steps, check out this guide on how to get a credit card.

If you’re finding it difficult to get approved for a credit card with no deposit, a secured card might be a better option. With responsible use over time, you could upgrade to an unsecured card. 

Although secured cards may start with a lower credit limit than unsecured cards, some issuers might offer credit lines higher than the deposit. One example is the Capital One Platinum Secured card. A $49, $99 or $200 minimum deposit opens your account with an initial credit line of at least $200. You can also raise your initial credit line by depositing more than the minimum.

Still have questions about credit cards with no deposit? These answers to frequently asked questions might help.

Whether you’re considering an unsecured or secured credit card, it’s good to get an understanding of your credit scores, compare card options and explore pre-approval. 

If it turns out that a secured credit card is your best option, it can be a great steppingstone. With responsible use over time, you may be able to improve your credit scores, get your security deposit back and even upgrade to an unsecured credit card.

Are you new to credit or searching for your next credit card? Capital One can help:

• See whether you’re pre-approved without hurting your credit scores.

• Earn unlimited 1.5% cash back on every purchase, every day, with a cash back rewards card.

• Explore credit cards you can use to build credit responsibly and earn rewards.

• Monitor your credit score with CreditWise. It won’t hurt your credit, and it’s free for everyone.