7 Best Second-Chance Credit Cards: No Deposit (March-2024)

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In truth, it’s not hard to get approved for a credit card with no credit. However, many lenders will be hesitant to deal with you if you have a bumpy credit report. Even with bill me later stores where you should shop with ease without cards, they are also wary of your financial reasonability. But, anyway, a few providers are still willing to take the risk on you with a second chance credit card with no security deposit.

Just as the name, these types of cards are there to help rebuild your damaged credit, or rather bad credit. So, you can truly make the best of the opportunity if you have agreed to learn from your previous mistakes.

What’s the Best Second Chance Credit Card Without a deposit?

Just like with the providers of free cell phone service, you need to be careful when choosing a deposit-free credit card. Otherwise, it would be very disappointing when you damage your score even further instead of strengthening it.

In any case, the six best second chance credit cards that can help improve your FICO Score without placing a deposit include:

Best Overall: Destiny MasterCard Credit Card
Best of Annual fees: Total Visa Card Credit Card
Best of Interest Rate: Indigo Platinum Credit MasterCard
Best of Bankruptcy: Milestone Gold MasterCard Credit Card
Best of Credit Limit: Continental Finance FIT MasterCard Credit Card
Best of Rebuilder: First Digital NextGen Platinum MasterCard Credit Card

The three easiest second chance credit card with a security deposit are:

Chime Credit Builder Visa Credit Card
Capital One Platinum Secured MasterCard Credit Card
Discover It Secured Credit Card

Can I Rebuild My Credit Quickly with a Second Chance Credit Card?

As was just mentioned, a second chance credit card aims to help you repair a damaged credit score. So, it will always show positive results even if it takes time.

Regardless, these credit cards can increase your points faster if you don’t have the patience to wait. However, this will depend on four main factors:

  1. The credit company that you’re using
  2. The age of your credit accounts
  3. How often you have late payments, and
  4. Credit card utilization

For credit card utilization, the terms simply mean how much credit of your available limit you use at any given time. If your utilization rate is below 30%, most lenders will consider you as a less lending risk. Unlike the individual who is maxing out or “over-drafting” their cards, you’re more likely to clear your full monthly balances on time. And just like with buy now pay later financing, the more consistent are your payments, the faster you increase the credit limit and credit points.

But again, this doesn’t mean you close your credit cards with a zero balance. The card issuers usually report to the major credit bureaus at various times throughout the calendar month- not yearly. Therefore, sitting your credit card at zero balance for several months could imply that you’re not using your account.

Meanwhile, the credit card issuer might stop sharing your account updates to the bureaus, which could affect the decision of potential creditors/ lenders. In the worst scenario, especially when you cancel, the zero balance could spike your overall utilization percentage and hurt your credit score.

6 Things To Remember When Applying For A Second Chance Credit Card With No Security Deposit?

Here are six important points to consider as you choose a second chance credit card to repair your credit account:

Prepare For The Credit Card

When you have bad credit, it doesn’t exactly mean that you had financial challenges, but you messed up somewhere. Therefore, prepare well for the second opportunity to avoid a repeat of the past. If it’s income, make sure you have enough funds to repay your balances in time and in full.

Pick The Best Credit Card Rates

Various credit card companies for bad credit have different interest rates, fees, reward bonuses, and credit limits. So, try shopping around as you compare the provider with the best combination of features and reasonable terms. If not, you’ll end hurting your credit report even more before making it better.

Use Your Second Chance Credit Card Often

Remember, this is a second opportunity that you might not have again or any time soon. Therefore, show the lender that you’re now good at managing your finances and the need to mend your bad reputation. If it’s the credit card balances, clear them before the due date. You can do this through small periodic purchases, which not only keep your card balance at zero. But also the account will remain open and active for reporting.

But Don’t Overuse The Card

That’s right. Just because I’m saying you keep your credit account active doesn’t mean you use the card to shop for everything. There’s still a 30% credit utilization percentage to maintain and a credit balance to settle by the calendar month.

Make Sure You’re Consistent On Payments

Well, I don’t need to remind you that this is your second and golden chance on your credit. So, make sure you always PAY on time and in full every month to avoid sinking your score further. In cases where you can’t pay in full, try to pay at least the minimum amount before the due date and clear off before the grace period ends.

 Second Chance Credit Card With No Security Deposit
Second Chance Credit Card With No Security Deposit

Track Your Progress

Last but not least, make efforts to check your credit score and credit report now and then to remain in the know of your status. That way, you could even speed up your recovery by disputing any errors on the reports with the major credit bureaus (such as Experian/ Equifax/ Transunion).

Comparing the Features and Benefits of the Various Second Chance Credit Card With No Security Deposit

Example of Credit Card Security Deposit % APR Rate Grace Period Status
Destiny MasterCard Credit Card None 24.90% 25 Days More Card Details
Total Visa Card Credit Card None 34.99% 21 Days More Card Details
Continental Finance FIT MasterCard None 29.99% 25 Days More Card Details
Indigo Platinum Credit MasterCard None 24.9% 25 Days More Card Details
Milestone Gold Mastercard None 24.99% 25 Days More Card Details
NextGen Platinum Mastercard None 35.99% 21 Days More Card Details
Chime Credit Builder Visa Card N/A
(charge card)
No Interest N/A More Card Details
Capital One Platinum Secured Master Card YES 26.99% 25 Days More Card Details
Discover It Secured Credit Card YES 22.99% 25 Days More Card Details
OpenSky Secured Visa Credit Card YES 17.39% 25 Days More Card Details

Destiny MasterCard Credit Card

Key Summary:

  • No deposit policy
  • 24.90% purchase APR
  • Up to $40 over-limit fee
  • Poor to Perfect FICO score
  • National credit bureau report
  • At least a 25-day grace period

Overall, Destiny MasterCard is the best second-chance credit with no security deposit. Not only does it accept applications from less-than-perfect credit reports but also offers most of the benefits of a credit card. This includes fraud protection in case you lose your card and transactions outside the U.S., albeit at a small fee.


  • It’s open to both poor and bad credit
  • Includes an over-limit coverage
  • Requires no upfront payment to use
  • Features a friendly grace period policy
  • Has no cash advance fee for the first year
  • It reports your payments to all major credit agencies


  • It has seemingly high annual fees
  • Has no rewards or bonuses
  • The credit limit is relatively low

Total Visa Card Credit Card

Key Features:

  • Multiple card designs
  • Authorized user support
  • A minimum 21-day grace days
  • $48 annual fee for existing account
  • 34.99% Purchase/ Cash Advance APR

The Total Visa Card Credit Card is another perfect solution if you would like to remake your credit history. Of course, the credit limit might be less for many people, but it does have a number of desirable benefits.

For, instance, you can use the VISA card at about any store, both online and physical, across the United States. However, you can’t use the payment option outside the States, which is a bummer during an abroad trip.


  • It has a lower annual fee for existing accounts
  • Has multiple card designs to choose
  • Can increase credit limit after one year
  • Available for perfect and low credit score
  • You can add additional credit accounts


  • The interest rate is pretty high
  • Gives no rewards or bonuses
  • Has a mandatory one-time processing fee

Continental Finance FIT MasterCard Credit Card

Key Features:

  • $0 fraud liability
  • Authorized user feature
  • 6-month credit limit increase
  • Local and foreign transactions
  • Up to $400 starting credit limit
  • Processing/ annual/ maintenance fee

In many second-chance credit cards with no security deposit, you’ll get a $300 credit limit for the first year. However, FIT MasterCard Credit Card offers an initial credit line of $400, plus you can increase the limit in only 6 months. It also has a generous $0 fraud liability feature that promises full card protection, whether you’re shopping locally, online, or traveling abroad.

Furthermore, the credit card supports authorized users, whereby you can add several cards under your primary account.


  • It has a reasonable credit limit
  • Easy to apply and get approved
  • Has a fast credit limit increase
  • Can be used locally and abroad
  • Provides a free monthly credit score
  • You can manage the card account online


  • Its fees are a bit high
  • Doesn’t offer cashback rewards
  • Requires a checking account to apply.

Indigo Platinum Credit MasterCard

Key Features:

  • 24.90% regular APR
  • $300 starting credit limit
  • 24/7 online account access
  • High-tech chip technology
  • Foreign transaction available
  • $0 annual fee to select applicants

When you choose Indigo Platinum MasterCard, you also won’t need to place a down payment. Then, you can use it without having to pay any annual fees, though, depending on your creditworthiness.

Similar to the traditional MasterCard, this card does offer fraud protection benefits and multiple designs to choose from. Moreover, the card necessarily doesn’t require a credit score to get approved, plus you can use it for shopping abroad at a minimum fee.


  • It has $0 annual fees for qualified accounts
  • You can choose your favorite card design
  • Supports both local and foreign transactions
  • Doesn’t have a cash advance fee for the first year
  • It reports to the three major credit bureaus every month


  • The annual fee eats into the credit limit
  • Offers no rewards or bonus coupons
  • It doesn’t have a mobile app or customer care chat

Milestone Gold Mastercard Credit Card

Key Features:

  • 24.9% fixed APR
  • $35-$99 annual fees
  • $300 starting credit limit
  • 1% foreign transaction fee
  • Up to $40 over-limit fee

Once you qualify, the Milestone Gold MasterCard Credit Card starts you with a total credit limit of $300. However, the company can issue an automatic credit limit increase over time if you maintain a positive performance. Furthermore, you could qualify for an ongoing annual fee of $35, but that will depend on your creditworthiness.

The second chance credit card also has a fixed interest rate. So, it will remain the same, regardless of the prime rate until the credit card issuer advises.


  • It accepts individuals in bankruptcy
  • Straightforward to pre-qualify and apply
  • Has a relatively low foreign transaction fee
  • Has no cash advance fee for the first year
  • You could go over your credit card limit


  • The credit limit is relatively low
  • It doesn’t offer access to your credit score
  • It draws the processing and annual fees from the credit limit

First Digital NextGen Platinum MasterCard Credit Card

Key Features:

  • $48 annual fees
  • Poor to fair FICO Score
  • 35.9% regular interest rate
  • A 12-month credit line increase
  • $29 annual fee for an authorized user

If you need to improve your credit score faster, the NextGen Platinum MasterCard Credit Card might be a good choice. The credit card company, First Digital, processes applications pretty fast and could even be faster with an additional fee.

While you’ll need to have a checking account, this credit card has the convenience and security of the regular MasterCard. You can use it with about any merchant, online services, and ATM in the United States, as well as abroad.


  • It’s quick to apply and get approved
  • Guarantees a secure application
  • Has possible limit rise after 12 months
  • Reports to the three top credit bureaus
  • It features a premium express delivery of your card


  • It has a lot of fees to pay
  • The interest rate is very high
  • You can’t use your credit card outside the U.S.

Chime Credit Builder Visa Credit Card

Key Features:

  • $0 annual fees
  • No credit check
  • 0% interest rate
  • At least one direct deposit
  • $2.5 charge for select withdrawals

Although we can say it’s a credit card, this Chime Credit Builder Visa is more of a recharge card. It requires you to put some money into your credit builder secured account, which will be the limit you can spend each month. If on a tight edge, you could even use that money to cater for your spendings of the month.


  • It’s virtually free to use
  • Can use the “deposit” for payment
  • Doesn’t report credit utilization
  • Available for people with bad credit
  • It doesn’t carry a balance to the next month


  • You must open a Chime spending account
  • It doesn’t offer rewards or welcome bonuses

Capital One Platinum Secured MasterCard Credit Card

Key Features:

  • $0 annual fee
  • 26.99% variable APR
  • $0 foreign transaction fee
  • $49-$200 refundable deposit
  • $10 or 3% Cash advance fees

If you have the $49 or $200 for the deposit, the Capital One Platinum Secured MasterCard is definitely worth every dime. It’s not only available for even those with bad credit but also has some lovely benefits, including minimal fees. The credit card, though, doesn’t have rewards but, luckily, you can pay your security deposit in installments.


  • It has a flexible deposit policy
  • Charges no annual or foreign traction fees
  • Promises a higher credit limit within 6 months
  • Potential upgrade to a popular rewards credit cards
  • It’s easy to manage online, by phone, or mobile app


  • It doesn’t offer rewards
  • You must have a checking or savings account

Discover It Secured Credit Card

Key Features:

  • $0 annual fees
  • 22.99% purchase APR
  • Full 2% cashback bonus
  • Up to $40 late payment fees
  • Free access to FICO credit score

Last but not least is another great alternative that you can enjoy credit facilities and rebuild broken credit at reasonable fees. It doesn’t charge annual fees and also you can check your FICO score each month free of charge. The best part, the Discover It Secured Credit Card offers 2% cashback and other rewards, something not with any other credit company on my list.


  • It will refund your security deposit
  • Can transition to an account with no deposit
  • Very strict on security matters, in particular, fraud
  • Doesn’t charge foreign purchase transaction
  • Accepted by about all places across the country
  • You can use your credit rewards at Amazon.com


  • It has a variable purchase APR
  • Must have the minimum deposit to apply

Key Takeaway: Important Notes

  • Grace period- refers to the time the credit card company allows you to late on payments without a penalty
  • Variable APR- simply means your annual interest rate can change over time
  • Fixed APR- the annual percentage rate doesn’t change throughout the year
  • Over-limit Coverage- refers to when you transact with a credit card beyond your limit.

Final Thoughts:

At this point, there’s nothing that should prevent you from getting a credit card now. Even if you’re both broke and with a dicey credit report, we’ve just covered various second chance credit cards with no security deposit. The only remaining thing is to choose the best option for your situation and register.

Before you apply, though, try contrasting the options of the secured and unsecured credit card. Check the fees, interest rate, grace day, and transaction fees (especially abroad) of each. Then, go for the choice with the best balance of all the factors.

For instance, in my case, I would go with the Discover It Secured Credit Card, even though it needs a deposit. Why? The second chance card has fee freedom, whereby you can use it without paying annual or foreign purchase transaction charges. It also gives you access to your FICO score free of charge and also enjoys several rewards, including cashback bonuses.

Frequently Asked Questions (FAQs)

What is a Second Chance Credit Card?

A second chance credit card is designed for individuals with poor credit history or those who are looking to rebuild their credit. These cards often come with higher interest rates and lower credit limits but do not require a security deposit.

Who Should Consider a Second Chance Credit Card Without a Security Deposit?

This type of credit card is ideal for people who have had financial challenges in the past, such as missed payments or defaulted loans and are seeking to improve their credit score.

Are There Any Fees Associated With These Cards?

Yes, some second-chance credit cards without a security deposit may come with annual fees, application fees, or higher interest rates. It’s important to read the terms and conditions carefully.

How Can a Second Chance Credit Card Improve My Credit Score?

By using the card responsibly, making purchases, and paying the full balance on time, you can gradually rebuild your credit. Consistent, on-time payments are reported to credit bureaus, positively impacting your credit score.

What are the Limitations of Second Chance Credit Cards?

These cards may have lower credit limits and higher interest rates compared to standard credit cards. Also, they might not offer the same rewards or benefits as other cards.

Can I Upgrade to a Better Card in the Future?

Yes, with responsible use and timely payments, you can improve your credit score and may become eligible for credit cards with better terms and rewards.

How Do I Apply for a Second Chance Credit Card?

You can apply online or in person at a bank. Ensure you have all necessary documents, such as identification and proof of income.