What credit score do you need for an unsecured credit card?
Quick insights
- An unsecured credit card does not require a security deposit and depends on lenders’ assessment of your creditworthiness for approval.
- The credit score needed to be approved for an unsecured credit card usually varies by issuer.
- Learning how unsecured credit cards function may help you determine if this type of card aligns with your financial needs and objectives.
Unlike secured credit cards, unsecured credit cards do not require a deposit. Instead, approval is typically based on factors such as credit score, income and credit history. Let’s explore what it may take to qualify.
What is an unsecured credit card?
An unsecured credit card is a credit card that doesn’t require a cash deposit as collateral. Unlike secured cards, where you supply a security deposit that serves as your credit limit, unsecured cards grant credit based on an assessment of your creditworthiness. (Note: Chase does not offer secured credit cards.)
The issuer will review your financial profile, including factors like your credit score, before setting your credit limit and deciding whether to approve your application.
How do unsecured credit cards work?
Knowing how unsecured credit cards work helps clarify what you can expect when you go to apply for one and if you get approved to use one. When you use an unsecured credit card, you borrow money up to a credit limit assigned by the issuer. As a cardmember, you are required to repay what you borrow. If the full balance is not paid by the due date, interest may apply to the remaining balance.
Below are some terms that typically come with using an unsecured credit card:
- Credit limit: The maximum amount you can borrow, usually based on factors like your income and credit score.
- Payment due dates: Tracking payment deadlines may help you avoid interest charges and late fees.
- Interest rates: Interest applies to any unpaid balance after the grace period and rates may vary based on your credit profile.
- Credit reporting: Your payment habits are generally reported to credit bureaus, impacting your credit score positively or negatively.
Rewards and benefits: Some unsecured credit cards offer rewards such as cash back or points, which may provide value for eligible purchases.
What credit score do you need for an unsecured credit card?
The credit score needed for unsecured credit card approval varies by issuer. Credit scores are commonly divided into tiers, like superprime, prime, near prime and subprime for VantageScore®—or exceptional, very good, good, fair and poor for FICO® scoring models. Many card issuers look for applicants whose score falls in the prime or near prime ranges, which is generally a score between 601 and 780 for VantageScore scoring models.
Below is a breakdown of the VantageScore scoring ranges:
- Prime credit (661 to 780): Those in this range usually have the highest chances of approval.
- Near prime credit (601 to 660): Your credit limits and terms might be more conservative.
- Subprime credit (below 600): Approval may become more difficult.
Your credit score is just one factor that is considered by lenders. Other factors may include income, debt levels and recent credit activity.
Benefits of unsecured credit cards
Qualifying for an unsecured credit card may provide a few benefits, such as:
- No deposit required: Unlike secured cards, unsecured cards don’t require upfront cash.
- May help improve credit: Responsible credit use and timely payments can positively affect your credit history and credit score.
- Potential rewards: Some cards offer cash back or points, adding more value.
How to improve your application
Creditworthiness is one factor lenders may consider when evaluating unsecured credit card applications. Steps that may help strengthen a credit profile over time include:
- Checking your credit report: Review your credit report for errors or outdated information to ensure accuracy.
- Addressing debts: Lowering outstanding balances and keeping credit utilization low may help improve your credit score.
- Making timely payments: Consistently paying bills on time can have a positive impact on your credit score.
- Limit new credit inquiries: Multiple recent applications may lower your credit score temporarily.
- Consider secured cards: If approval is difficult, secured cards may help build credit history and raise your score over time. Note: Chase does not offer secured credit cards.
- Consider enrolling in Chase Credit Journey®: Credit Journey®, powered by Experian™, is a free online tool available to both Chase and non-Chase customers. It is designed to help customers better understand and manage their credit score and credit goals. Customers can access their credit score anytime with no impact to their credit, receive credit tips to help improve their score, and get identity monitoring—all in one place and for free.
Frequently asked questions about unsecured credit cards
Here are common questions and answers regarding unsecured credit cards:
- Can I get an unsecured card with no credit history? Approval may be challenging without credit history, but some issuers offer cards tailored for those new to credit or have a limited credit history.
- How does an unsecured card affect my credit score? Responsible use—such as on-time payments and maintaining a low credit utilization ratio—can help improve your credit score over time. Other behaviors, such as missed payments, may lower your credit score.
- Are unsecured cards safer than secured cards? Both typically include protections like credit monitoring alerts; however, unsecured cards do not require a deposit, which some users prefer.
- Can I increase my credit limit over time? Some issuers may raise your credit limit based on payment history and credit performance.
- Do unsecured cards have fees? Fees vary by card; it may be helpful to review the specific terms and conditions to better understand annual fees, late fees and interest rates.
The bottom line
An unsecured credit card provides you access to credit without a deposit, with approval based on factors like your credit score and overall financial profile. Along with credit scores, lenders may consider factors such as income and payment history.
Understanding how these cards function and their benefits can help determine if applying for them suits your current financial situation. There are steps that may help build or strengthen a credit profile over time.
