Unsecured credit cards for bad credit exist, with no deposit required and real approvals down into the 400s. But they charge fees where secured cards take deposits, and fees don’t come back. This page lists the cards in this category whose current terms we’ve verified against the issuers’ own documents, with the real cost of each spelled out. The short version: if you can fund any deposit at all, a secured card is almost always cheaper. If you cannot, the verified options are below.
| Card | Year-1 cost | Ongoing cost/yr | APR | Starting limit | Open application? |
|---|---|---|---|---|---|
| Milestone Mastercard | $175 | ~$199 | 35.9% | $700 (~$525 usable) | Yes |
| Indigo Mastercard | $175 | ~$199 | 35.9% | $700 (~$525 usable) | Yes |
| Mercury Mastercard | offer-specific | offer-specific ($0 in published sample) | 25.99%–35.99% (sample) | offer-specific | No (invitation only) |
All figures verified August 25, 2026 against each program’s own application disclosures; mailed offers can differ. Full sourcing in each review.
The cards, in detail
Milestone Mastercard
- First-year cost $175
- Ongoing cost ~$199/year
- Purchase APR 35.9%
- Starting limit $700 (~$525 usable)
Why it’s listed: One of two open-application programs in this category with verified terms. It approves deep-subprime files, and a declined application leaves no hard inquiry.
Indigo Mastercard
- First-year cost $175
- Ongoing cost ~$199/year
- Purchase APR 35.9%
- Starting limit $700 (~$525 usable)
Why it’s listed: Indigo is a twin program of Milestone from the same servicer, Concora Credit, with the same fees, APR, and starting limit. Its declined applications likewise leave no hard inquiry.
Mercury Mastercard
- First-year cost Offer-specific
- Ongoing cost Offer-specific ($0 annual fee in published sample)
- Purchase APR 25.99%–35.99% (sample)
- Starting limit Offer-specific
Why it’s listed: Mercury is the invitation-only option in this category; there is no open application, and pricing varies by mailed offer. The published sample terms show a $0 annual fee. Verify bureau reporting before accepting an offer.
Milestone and Indigo cost $175 the first year and about $199 a year after that ($49 annual fee plus a $150 “monthly fee” billed monthly); held for three years, either card costs roughly $573 in fees against a $700 limit. A secured card reverses that structure: OpenSky Plus charges $0 a year against a $300 deposit that is returned, and Capital One’s secured card can open a $200 line for a $49 refundable deposit. Both routes carry the same three-bureau reporting and the same credit-building effect, which is why “no deposit” is usually the more expensive choice. The deposit-versus-fee economics are covered in detail in no-deposit credit cards.
When an unsecured bad-credit card genuinely makes sense
- You cannot produce a deposit. The operative condition is cannot, not “would rather not.” In that case, fees are the price of access: twelve reported on-time payments from a Milestone still build a file.
- You need the decline-safe application. Milestone and Indigo disclose that a declined application leaves no hard inquiry — useful when your file cannot absorb another one.
- Mercury mailed you an offer with a $0 annual fee (the published sample terms suggest those exist). Verify bureau reporting before accepting; details in the Mercury card review.
What to watch in this category
- The fee posts to the card. A $175 fee on a $700 limit means you open at 25% utilization with $525 of room. High utilization works against the score you’re trying to build; the utilization calculator shows the effect.
- 35.9% APR means never carry a balance. The card interest calculator shows what carrying any balance costs at that rate.
- Treat these as 12-month bridges. Build the year of history, then graduate to a mainstream card and close the account. The exit sequence is the same as for secured cards: use a secured card to build credit.
- “Guaranteed approval” versions of these ads are marketing. No card guarantees approval; we examine that category in the guaranteed approval card myth.
The alternative worth one more look
Before paying $175 to avoid a deposit, check whether $49 solves it: Capital One’s secured card assigns deposits of $49, $99, or $200 for a $200 line, with no annual fee and the category’s best graduation path: Capital One Platinum Secured review. And OpenSky approves with no credit check at all: OpenSky Plus review.
Frequently asked questions
What is the easiest unsecured card to get with bad credit?
Among open-application cards we’ve verified, Milestone and Indigo approve the deepest subprime files — and their declines don’t leave a hard inquiry. “Easiest” carries a price: about $175 the first year in fees.
Can I get an unsecured credit card with a 500 credit score?
Yes — Milestone and Indigo approve in that range. Whether you should depends on the deposit question: at 500, a no-credit-check secured card builds the same credit for far less. Our full walkthrough: cards for a 500 credit score.
Do unsecured bad-credit cards build credit faster than secured cards?
No. Both report monthly to the bureaus; the score impact of clean payments and low utilization is the same. The difference is what you pay for the privilege: refundable deposit vs. non-refundable fees.