Bad credit history sometimes throws away big trouble when anyone wants to get a credit card. You may be surprised to know about guaranteed approval credit cards for bad credit with $1000 limits, is it? Let’s take a look at guaranteed approval credit card how it works and how can you get with your low credit score or bad credit.
One of the main problems that anyone has to face while getting a credit card is getting approved. Many causes might hinder one from getting a credit card, and one of them is the curse of bad credit. If your credit score is low and you try to get approval for a credit card, you are sure to be rejected.
But don’t worry if your credit score is already in the red. That is because there is a way of getting guaranteed approval credit cards for bad credit. The options that you might have are shallow, but their approval is guaranteed. Unlike the second chance credit cards with no security deposit, these cards have a limit.
This article will try to give you an idea about what to do if your credit score is low. We will also talk about a few credit card options. But before that, let us see what bad credit is.
- What Is Bad Credit?
- How To Calculate Bad Credit Score?
- What Is A Guaranteed Approval Credit Card?
- How Do Guaranteed Approval Credit Cards Work?
- How Can You Get A Guaranteed Approval Credit Card With Bad Credit?
- What Should You Know Before Picking a Guaranteed Approval Credit Card?
- How Do I Get A Large Credit Card Limit?
- Is Granted Approval Credit Card Enough To Build My Credit Score?
- 9 Best Guaranteed Approval Credit Card For Bad Credit With No Deposit
- Other Types Of Credit Cards For Bad Credits
- Bottom Line
What Is Bad Credit?
We have been using the words “Bad Credit” a lot. You might be confused about what it is. In short bad credit is having a low credit score. That is having a negative aspect in your borrowing history.
Whenever you use your credit card to buy something, you are, in reality, purchasing things with borrowed money. It is not your money, and you have to repay the debt. All these purchases pile up a debt that must be paid.
If you miss the payment window, then your credit history worsens. The reverse occurs when the debt is timely paid. There are a few factors that help you get bad credit. They are,
- History of wrongdoings
- High debt balances
- Current bankruptcies
How To Calculate Bad Credit Score?
Now that you know what bad credit is, you might be asking about how to calculate yours. The credit score for any credit card is calculated based on the system proposed by FICO. The score is calculated based on five factors in which ranging from 300 to 850. Each of them carries a different weight.
- Payment history – 35%
- Amounts owed – 30%
- Length of credit history – 15%
- New credit – 10%
- Credit mix – 10%
Using these factors, you can calculate your score and get an instant debit card online. Now there are specific score ranges for different credit behavior. These are,
- Exceptional: Credit score greater than 800
- Very good: Credit score between 740 – 799
- Good: Credit score between 670 – 739
- Fair: Credit score between 580 – 669
- Poor or Bad: Credit score below 580
What Is A Guaranteed Approval Credit Card?
Guaranteed credit cards or guaranteed approval credit cards for bad credit is a myth. No credit card will indeed offer guaranteed approval, even if you apply for the secured ones with a high credit score. That is because the requirements differ from card to card.
But one thing is common among them. If your credit history has non-discharged bankruptcy, you will not get approved for any cards out there.
With this in mind, there are a few cards that do approve even bad credits. The approval of these cards is not guaranteed, but the probability is pretty high. These are the cards known as guaranteed credit cards.
How Do Guaranteed Approval Credit Cards Work?
Even if there is no such thing as a guaranteed credit card, one thing is true. You can get a secured credit card if you back it with enough deposits. That is why second chance credit cards with no security deposit are not guaranteed. The deposit lessens the credit card issuers’ risk.
These cards are sure to be approved if you have enough deposit. They are even guaranteed approval credit cards for bad credit. If you do not pay the bills in time, the issuer can cut the amount from your security deposit. This makes sure that your credit score doesn’t go down. That is why guaranteed approval credit cards are a great way to increase your credit score.
How Can You Get A Guaranteed Approval Credit Card With Bad Credit?
So, you have bad credit and thinking of getting a credit card. If you have enough money to deposit some money, we suggest you get guaranteed approval credit cards for bad credit. They are pretty easy to get. The only thing you need to keep in mind is that your credit record does not have any bankruptcy in it. Especially non-discharged bankruptcy.
That is because no credit card issuer issues a card to someone with such a credit history. If you have a record free of bankruptcy, you can easily get a card. In fact, to get guaranteed approval for credit cards with bad credits, there are two things you need to do.
The first is to apply for a credit card to the issuer. And then secondly, deposit an amount of money. This is to make your card a secured one, and this is what guarantees you the card. Even if you don’t have the cash, you can deposit it online. If you don’t know how to transfer money from one debit card to another online, just look it up on the internet.
What Should You Know Before Picking a Guaranteed Approval Credit Card?
Before you pick the card that you want, there are a few things you must know. This will help you out while making a choice. They are,
Different credit cards have different annual fees. Some even require to be paid every month. So, while choosing the card, check if the yearly fee suits you. If it doesn’t, then your credit score will worsen when left unpaid.
Is My Credit Score High Enough?
If your credit score is poor, check to see how bad it is. That is because some credit cards have a lower limit to the user’s credit. Even if they say they are for bad credit, not all of them are the same.
What’s The Minimum Credit Line?
A credit limit or line is the maximum amount of debt a credit card user can have. That is why it is advised to know the minimum credit line of any card before applying for them.
Are The Rewards Worth It?
Some credit cards offer rewards based on their use. So, while choosing them, please make sure the rewards that they offer are worth it. If not, then switch to another card.
How Do I Get A Large Credit Card Limit?
There are mainly four options by which you can increase your credit card limit. They are,
If you want a larger credit line or limit, simply request online. Believe me, it helps.
Call the Issuer
Sometimes the limit can be increased by the issuer. So, try asking them by calling them.
Automatically Increase it
A few card issuers provide the user with the function to increase the limit automatically. That is why you should look for such an option.
Apply for a New Card
If your credit is high enough, apply for a new card. That is because some issuers give larger limits if the credit score is good enough.
Is Granted Approval Credit Card Enough To Build My Credit Score?
The increment of your credit score is dependent on you. If you make purchases responsibly and pay your debts in time, your credit score is sure to increase. This is true even if you have a bad credit score. So if you want to increase your bad credit score while using guaranteed approval cards, use them responsibly.
9 Best Guaranteed Approval Credit Card For Bad Credit With No Deposit
1. Discover it® Cash Back
Discover is® a well-known name in the credit card sector. Their Discover it® Cash Back is a card that ensures this fame. The card has quite a few benefits added to it. Even though these are guaranteed approval credit cards for bad credit, there is no annual fee. Moreover, there is a 1% cashback for all purchases.
This cashback becomes 5% if any everyday purchase is made at Amazon.com or using PayPal. They also have a feature called Cashback Match. This feature makes it so that you get double the cashback if your yearly cashback record matches the first year’s record.
2. Chase Sapphire Reserve®
Chase Sapphire Reserve® is one of the best credit cards you can get. The number of rewards this card has is all fantastic. For starters, the reward system of the card is point-based. There is a $300 annual travel credit. This helps you travel easier and with comfort.
In fact, the rate of points that you earn increases three times if you are traveling. So, use the card on travels to rack up some points. That is not all; if you spend $4,000 within the first three months, you get a bonus of 60,000 points. All these points are sure to help you in your travels.
3. Chase Freedom Unlimited®
If you want the best credit cards with no monthly fees, the Chase Freedom Unlimited® is the perfect card for you. The card is free of any annual fee and also has some good rewards. One of these rewards is the 5% cashback on any travel-related purchases.
There is also 3% cashback on dining and drugstore purchases. The best thing about these cash backs is that the rewards don’t expire. So, you can hold on to the cash backs for a long time. That is why we recommend this card if you want free limitless cash backs.
4. Capital One Platinum Credit Card
Capital One is a renowned credit card issuer. Their Capital One Platinum Credit Card is one of the causes for this fame. These cards are secured and issued even if you have bad credit scores. If you want a higher credit line or limit, then just use your card responsibly.
The Capital One Platinum Credit Cards are reviewed automatically. A higher credit line is offered to those with good scores every sixth month. Moreover, there is fraud coverage if you lose your card. This feature doesn’t hold you responsible for any form of fraudulent purchases after being stolen.
5. Chase Ink Business Preferred Credit Card
Another point reward-based credit card from Chase is the Chase Ink Business Preferred Credit Card. Like Chase Sapphire Reserve®, this card also has a few benefits, but they are not limited to travel. In fact, the points can be redeemed for gift cards, travel expenses, and more.
If you still want to travel using them, there is a 25% profit in travel redemptions. Moreover, if you spend $15,000 within the first three months, you get a bonus of 100,000 points. This roughly translates to $1,000 cashback or $1,250 travel rewards.
6. Bank of America® Cash Rewards Secured Card
Bank of America®’ Cash Rewards Secured Card is for you if you want to have a card for the people. These cards are pretty good if you’re going to increase your bad credit while paying zero annual fees. You can enjoy a 3% cashback on any service of your choice.
Not only that, there is a 2% cashback on the first $2,500 grocery purchases and 1% on the later ones. The 1% cashback is unlimited on any purchase. Your credit score is updated every month free of any additional cost.
7. Wells Fargo Propel American Express® Card
If you prefer a point-based reward system and want to get granted approval cred card then Wells Fargo Propel American Express® Card is another option for you. This point-based card is free of any annual fee. Not only that, but it also has one of the lowest intro APRs on purchases and balance transfers.
Unlike most point-based cards, there is no limit to your point collection. In fact, the rate of points rewarded is three timed when using it for specific services. You can also earn a bonus 20,000 point bonus if you spend $1,000 on purchases in the first three months.
8. Discover it® Secured Credit Card
If you want a secured and reliable credit card, unlike the second chance ones, go for Discover it® Secured Credit Card. These cards are as real as they can get. That is because they build your credit history along with the three major credit bureaus. Moreover, the credit score is updated monthly for free.
You can earn unlimited cashback matches to your 2% cashback gas station and restaurant purchases. This is one of the few secured credit cards that have the refundable secured deposit function. One more thing, all this is free of any annual fee.
9. U.S Bank Secured Visa® Card
If you want flexibility on your due payment date, take a look at U.S Bank Secured Visa® Cards. With this card, you can schedule your due payment dates as you see fit. If you link the card to your bank account, then your dues are paid up automatically free of any extra costs.
They also have the zero-fraud liability feature. So, you don’t have to worry about any fraudulent purchases after your card is stolen. With its online services, you can access your account any time, anywhere. You can also access your credit score via the mobile app or online banking. This gives you complete control.
Other Types Of Credit Cards For Bad Credits
1. Unsecured Credit Cards
When you do not want to make any security deposit, you can choose this type of card. These cards have no security fee. That is why you need to pay your dues in time. Or else your bad credit score will worsen and make you ineligible for any other credit cards.
They are a good option if you are responsible for your expenditures. since there is no security deposit to be paid, the terms are a bit strict. So the probability of them getting approved is low.
2. Secured Credit Cards
If your credit is limited or damaged, you may choose this type of card. That is because there is a security deposit to be made for this card. The security deposit is to reduce the risk for the issuer of the card.
The terms of due payment are a bit loose compared to the unsecured credit card. That is because even if you miss a scheduled payment date, the amount is retracted from your security deposit. There is a certain leeway.
3. Store Credit Cards
Some stores have their own credit or scorecards. These cards are only useable for those certain stores or retailers. The way to gain these cards is by depositing or purchasing products from that store for a certain amount. The term for using this card is only limited to the particular retailer.
They mainly point to reward-based cards which can be redeemed only in that store. They do not have any annual fee, and in most cases, your credit score is not affected by them.
4. Credit Builder Loans
These cards are the best for those who have little or no credit history. They help you build credit. Your credit score is not a fact for approval. If your income is good enough to make payments, you can easily get approved for this card.
To get this card, you need to apply for a loan. This loan is to be paid off over time. Usually, the amount is inaccessible as long as the loan is unpaid. This helps you build your credit and savings simultaneously.
Now that you know about credit cards and bad credit, you can choose the perfect card for you. With the knowledge about guaranteed approval credit cards for bad credit, you can increase your credit score.
This way, you can apply for even better cards. That is why we suggest you use your credit card responsibly and pay the debt within a month.