Can I get a credit card with no deposit?

When exploring credit cards, you’ll find that some, called secured cards, require a security deposit up front. Unsecured cards, on the other hand, don’t require a deposit.

What you’ll learn:

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

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

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

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

Cards that require a deposit are called secured credit cards. 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 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.

Here are three options to consider for a credit card without a security deposit:

Even if you’re establishing or building credit, there may be unsecured credit cards you can qualify for. It may make sense to explore credit cards for fair and building credit from Capital One. There are also student credit cards, which are designed for college students with no credit history. 

Benefits vary and may include things like cash back rewards, no hidden fees and no security deposits.

When someone you trust adds you as an authorized user, you’re given access to their credit card account. You’ll typically get your own card to make purchases even though 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 use of credit is important for both the authorized user and the primary cardholder, because positive and negative actions can affect both people’s credit scores.

Improving your credit scores can take time and responsible use. That means doing things like making payments on time and keeping your balances low. 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.

And remember, if you see companies offering quick fixes to boost your credit, it may be a scam.

Here are some basic steps in order to apply:

1. Evaluate different card options. Understanding which credit cards might be available based on your credit scores 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. With Capital One pre-approval, you can see if you qualify for a credit card before you apply. It doesn’t impact your credit scores and can help you compare options to find the right fit.

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

4. Find out what information you may need. When you go through the application process, the credit card issuer may require certain information, such as 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.

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

If you’re finding it difficult to get approved for an unsecured credit card, a secured card might be a better option. With responsible use over time, you could build enough credit to 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 before applying. 

If it turns out that a secured credit card is your best option, it can be a great stepping stone. With responsible use over time, you may be able to improve your credit scores, get your security deposit back and even become eligible for a credit card with no security deposit required.

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 Quicksilver or other cash back rewards cards.

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

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