Can You Get a Credit Card With No Deposit?

If you’re new to credit, or just looking for your next credit card, the number of options out there can be overwhelming. In general, credit cards fall into two categories – secured and unsecured.

Secured credit cards require a security deposit, usually equal to the credit limit. These cards are designed for applicants who may be building credit. 

Most credit cards are unsecured, which means they don’t require a security deposit. Applicants are evaluated based on factors like credit history and income, so they can be harder to qualify for than secured credit cards – especially if you’re new to credit cards.

Here’s what you need to know about qualifying for secured and unsecured credit cards.

What credit cards require a deposit?

Only secured credit cards require a refundable security deposit. Secured cards are designed for people with limited credit histories, who may have trouble qualifying for an unsecured credit card. The deposit helps manage risk for the lender, who can use it to cover missed payments if needed. 

Secured credit cards generally come with lower credit limits than unsecured credit cards. You can use a secured card to make purchases like any other credit card, spending up to your credit limit. You’re also required to make regular payments and pay at least the minimum payment due each billing cycle. Making on-time payments and keeping your balance low can help you build credit.

What credit cards don’t require a deposit?

Unsecured credit cards don’t require a deposit. Most credit cards are unsecured. Because they don’t require a security deposit, and lenders must approve your application based on creditworthiness and personal financial factors, unsecured cards can be harder to qualify for than unsecured credit cards.

There are many types of unsecured credit cards, including:

• Travel credit cards
• Reward credit cards
• Cash back cards
• Balance-transfer cards
• Low intro APR cards
• Store credit cards

Ways to get a credit card with no deposit if you’re building credit

Your credit card options may be somewhat limited if you’re still building credit. The key is understanding which options work best for your circumstances.

Apply for an unsecured credit card

If you have some established credit, you may be able to get an unsecured credit card that’s easier to qualify for but may have fewer benefits. These starter credit cards may help you build credit, so you can qualify for a card with more perks in the future.

Become an authorized user

Becoming an authorized user on someone else’s credit card gives you access to a credit card through their account.

Authorized users can make purchases on that credit card, as with any other credit card. If the cardholder demonstrates responsible credit habits and the issuer reports authorized users to the credit bureaus, becoming an authorized user could help you build credit and eventually qualify for your own unsecured credit card.

Work on your credit

If you don’t need a credit card right away, there are several steps you can take to improve your credit before applying for an unsecured credit card.

Making on-time payments for your existing loans can help you build credit. You might also decide to report your rent payments to the credit bureaus with a rent-reporting service.

Applying for a credit card with no deposit

Whether you’re approved for an unsecured credit card depends on factors like creditworthiness and income. Each credit card has its own requirements.

Checking your credit may help you understand your options and look for credit cards you’re more likely to be approved for. You may also be able to use pre-qualification tools to see which cards you may qualify for.

Once you’re ready, you can apply for your desired credit card. You'll typically have to provide personal information such as your full legal name, Social Security number (or individual taxpayer identification number) and gross annual income. You may have the option to apply online, in-person or over the phone.

The application process is usually the same as applying for a secured credit card, except you won’t put down a deposit.

When to consider a secured credit card

If you’re having trouble qualifying for an unsecured credit card, a secured credit card may be the right move. 

Secured credit cards can be a stepping stone to new options with more benefits, like rewards credit cards. And some secured cards may automatically upgrade to an unsecured card after consistent, responsible use.

Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.