How long does it take before borrowers are offered an unsecured credit card? Credit card companies and banks want to keep their clients, which is why they will offer you an unsecured credit card provided that you make regular payments. On average, it takes about a year to build credit and qualify for an unsecured card. Secured loans and credit cards are offered to persons with less-than-perfect credit, and they are easier to obtain. Borrowers with poor credit have a better chance of getting approved for a secured loan if they offer collateral to the lender. Thus, risk is less of a factor. Applicants for a secured credit card are asked to make a deposit with the credit card issuer. If the borrower is unable to make payments, the issuer may keep the deposit. 
Credit history is based on two different factors: revolving credit, such as credit cards, and instalment loans, like personal loans. Borrowers who seek to rebuild credit are advised to consider both options. At the same time, borrowers with credit problems and histories of late or missed payments are viewed as high risk. Borrowers with poor credit are usually offered outrageous interest rates or are turned down by financial institutions because of their poor credit history. That is why borrowers resort to secured loans. Those who have some valuable asset to offer against the loan stand a better chance of having their loan application approved.
Many financial institutions are willing to offer a lower interest rate to borrowers who offer collateral. Lower interest charges make payments more manageable and thus, borrowers find it easier to keep up with their monthly payments. Regular payments, on the other hand, help rebuild credit.
Using a prepaid card or a secured credit card is another way to rebuild credit. Secured credit cards are offered by mainstream banks, many credit unions, credit card companies, and other financial institutions. Some banks offer unsecured credit cards only. Many banks started offering unsecured credit cards with higher fees and interest rates and lower limits. Still, this is a good option to build or rebuild credit. Secured credit cards are intended for people who seek to establish or rebuild credit after some major event, for example, serious illness, loss of job, or divorce. To this, borrowers are advised to make sure the card issuer reports to all credit reporting agencies. If they do not, borrowers lose a major benefit.
As a rule, if you start getting offers for unsecured credit cards after having made on-time payments for several months, you will know that the card issuer is reporting. Make sure the credit card issuer does not flag the report as secured or prepaid credit card because you will find it difficult to rebuild credit this way.