How to get a credit card with no deposit

Some credit cards, called secured credit cards, require a security deposit to open an account. But it’s possible to open credit cards without a deposit. These are called unsecured credit cards. 

Learn more about how unsecured credit cards work and what you can do to get one.

What you’ll learn:

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

• People who need to build credit have alternative ways to potentially access an unsecured credit card.

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

• Once you’re pre-approved for an unsecured credit card, you can confidently apply for that card, with no deposit necessary.

Credit cards that don’t require a security deposit are called unsecured credit cards. They may be what comes to mind when you 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. This can make them good options for people who aren’t as likely to be approved for unsecured cards.

There are different types of unsecured credit cards. Generally, those with lower interest rates and more premium rewards require good to exceptional credit scores, which credit-scoring company FICO® says are scores of 670 or higher.

But your credit scores aren’t the only factor in play. It may be possible to get a card with no deposit if you have fair or even poor credit. That’s because, when you apply, lenders may still approve you based on other creditworthiness factors like your income and current debt.

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 usually don’t have to undergo a credit check. 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 taking steps like making on-time payments and keeping your balances low. 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, and using it won’t hurt your credit score. You can also get free copies of your credit reports at AnnualCreditReport.com.

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

1. Research different credit cards. Understanding which unsecured 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 can help you understand which unsecured, no-deposit credit cards you might be eligible for, compare options and find the right fit. With Capital One pre-approval, you can see whether you potentially qualify for a credit card—without impacting your credit scores. 

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

If you qualify for a pre-approval from Capital One and are later formally approved, you can start using the card once you accept it or it arrives in the mail. It’s also a good idea to review the card’s terms and conditions, especially if you didn’t look into them after you became pre-approved.

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 eventually 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 stepping stone. 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 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 scores, and it’s free.