Guaranteed Approval Credit Cards With $1,000 Limits For Bad Credit: Believe it or not, there are credit cards with credit limits over $1,000 that are available to borrowers with bad credit. Some even have such a high chance of approval that they are almost guaranteed.
Getting a credit card for bad credit is difficult, especially if you need something with a high credit limit. Luckily, some cards are accessible enough to come as close as you can get to credit cards with guaranteed approval.
While credit card approval is never fully guaranteed, some cards are much easier to obtain than others. And in it, you will find many cards with credit limits up to and over $1,000.
We’ll show you what you need to know to get a guaranteed approval credit card with a $1,000 limit if you have bad credit and show you our top 9 cards.
Are There Any Guaranteed Approval Credit Cards With $1,000 Limits For Bad Credit?
Yes, there are bad credit cards with a $1,000 credit limit. While many bad credit cards have low credit limits — typically between $200 and $500 — some offer limits of up to $1,000 and more.
If you’re looking for a bad credit card with a limit over $1,000, secured credit cards are the easiest to get. Secured cards require a credit card deposit, which usually determines your credit limit. So if you’re willing to put down a $1,000 deposit upfront, you can get a credit card with the same limit.
There are also unsecured bad credit cards that offer $1,000 limits, but they are more difficult to qualify for. Unlike secured cards, with an unsecured credit card, your credit limit is set by your lender. You usually base this decision on your credit history and financial situation.
How do I get a $1,000 limit credit card if I have bad credit?
There are three ways to get a $1,000 limit credit card if you have bad credit:
- Place a deposit of $1,000 or more on a secured credit card.
- Qualify for an unsecured credit card with a credit limit of $1,000 or more.
- Buy a credit card and apply for a credit limit increase to $1,000 after 3-12 months of responsible borrowing.
As with any credit card, the first step to getting a $1,000 credit card is to apply. Research potential cards before submitting your application and select the card that best suits your needs. Check out our list of the best credit cards with guaranteed approval and a $1,000 credit limit below to get started.
Best Guaranteed Approval Credit Cards With $1,000 Limits For Bad Credit
In our research, we found that the following 9 cards easily qualify with bad credit, even though they offer limits of $1,000 or more.
Sable ONE Secured Credit Card: Best credit card with guaranteed approval and a $1,000 limit
Our top choice for guaranteed approval credit cards with $1,000 limits for bad credit is the secure Sable ONE credit card. It has a lot to recommend in terms of credit limits, fees, and bonuses. Here are the notable benefits:
- No annual fees
- 2% cashback on Amazon, Spotify, Netflix, Uber, and other select brands
- 1% money back on everything else
- Cashback equals the first year
- Credit limits up to $10,000
- No credit check is required to apply
- 98% chance of approval
Not only does this card offer the most flexible credit limit on the list, but it doesn’t come with a hefty annual fee or exorbitant interest rates. The card offers a 1%-2% cashback rewards program with a dollar cashback match for the first year.
The Sable ONE does not require a credit check to apply, meaning even borrowers with poor credit scores and negative numbers in their credit history can easily qualify for a card. As it is a secured card, a deposit is required which determines your credit limit. However, you can set this limit up to $10,000.
OpenSky® Secured Visa® Credit Card – Best guaranteed approval credit card with $1,000 limit and no credit check
The OpenSky® Secured Visa® is the most secure credit card with guaranteed approval and a potential credit limit of $1,000. A deposit is required, but you can leave this deposit up to $3,000. You get back what you deposited. So if you’re willing to pay $3,000 upfront, you can have $3,000 in balance in your wallet.
What sets this card apart is that it is a credit card that does not require a credit check, a rarity in the lending world. This is great for two reasons:
- You don’t get a hard check of your credit report. Difficult investigations occur when someone subjects your credit history to a rigorous scrutiny or credit check. They’ll take a few points off your credit score, so avoid asking tough questions if you can.
- Anyone can qualify. Even if you have bad credit, no credit, bankruptcies, or other black spots on your credit report, the OpenSky® Secured Visa® lender will not see them, so you may still qualify for the card.
- You don’t even need a checking account for the OpenSky® Secured Visa®. If you are not financially established or going through a difficult financial phase, you can still open an OpenSky® Secured credit card.
The OpenSky® Secured card is also a great credit card for building credit as it reports to Equifax, Experian, and TransUnion – the three major credit bureaus that compile your credit reports.
On the other hand, the card charges an annual fee of $35. However, this is a relatively small cost when you consider the value you can get with the OpenSky® Secured Visa®.
Prosper® Card: The best-unsecured credit card with guaranteed approval with a $1,000 limit
If you are looking for an unsecured credit card with guaranteed approval and a very high potential credit limit, the Prosper® card is an excellent choice. It is an unsecured card and offers initial credit limits ranging from $500 to $3,000. Better yet, you can double that line of credit in just 3 months, which means you can have a $6,000 line of credit on the Prosper® card.
While there is no deposit required, the Prosper® Card does incur a cost. However, the annual fee is only $39 and you get a first-year exemption when you set up an automatic payment.
Applying for the Prosper® Card is quick and easy, allowing you to have thousands of dollars in purchasing power in no time.
First Progress Platinum Prestige MasterCard® Secured Credit Card: Best Guaranteed Approval Credit Card with a $1,000 limit and a low APR
The First Progress Platinum Prestige Mastercard® secured credit card is one of three First Progress secured credit cards. The First Progress Platinum Prestige Mastercard® has a lot to offer, including:
- Credit limits between $200 and $2,000
- No credit check is required to qualify
- Low APR
- Credit checks from the three major credit bureaus
Because no credit check is required to apply, the First Progress Platinum Prestige Mastercard® is a nearly guaranteed approval card, even if your credit history is negative. Because it’s a secured card, the line of credit you get is equal to your deposit, so you can decide if you’re willing to put down more than $2,000 for a large line of credit.
Most importantly, the First Progress Platinum Prestige Mastercard® has an incredibly low APR, especially when compared to other guaranteed approval credit cards with $1,000 limits for bad credit. The APR is only 9.99% (variable).
APR represents the interest rate on a credit card. While most credit cards available to bad credit borrowers have an extremely high APR, 9.99% (variable) is a remarkably low percentage. This means that if you keep a credit card balance month-to-month, you won’t be buried in interest costs.
Citi Secured Mastercard Credit Card: Best Credit Card with $1,000 Guaranteed Approval and No Annual Fees
The Citi® Secured Mastercard® is a secured credit card with incredibly high approval rates and a flexible credit limit of up to $2,500. Your line of credit is equal to the down payment you pay, which means you can get a line of credit from $200 to $2,500 if you’re willing to put down a large down payment.
Although you have to pay money for the card in advance, the costs are otherwise low. There are no annual fees, processing fees, or monthly fees.
Also, Citibank reports your lending activity to the big three credit bureaus so you can build credit across the board. Comprehensive credit reporting is important when attempting to build or restore your credit score, as the information provided to the bureaus will update your credit report.
Horizon Secured Credit Card: Best credit card with guaranteed approval with a $5,000 limit
The Horizon Secured credit card can be your first port of call if you are looking for a bad credit card with no deposit and up to a $5,000 credit limit. This card gives you an initial limit of between $300 and $5,000.
With such a high potential line of credit, there are many ways to make one over $1,000 or even as high as $5,000.
The Horizon Secured card also reports to all three major credit bureaus, making it a good card for building credit. Last but not least, the Horizon Secured credit card does not charge an annual fee, making it a cheap and potentially high-yielding card.
Petal 1 Visa Credit Card: Best Guaranteed Approval Credit Card with a $1,000 Limit and No SSN
The Petal® 1 Visa® credit card (like its sister card, the Petal® 2) is rare. Among the many positive qualities it is:
- Requires no deposit
- Doesn’t charge annual fees
- Has a high chance of approval
- Is available for borrowers without a Social Security Number (BSN).
- Offers cashback rewards
- Gives credit limits up to $5,000
These qualities make it an incredibly attractive and accessible lending option. With a potential credit limit of up to $5,000, the Petal® 1 Visa® should be at the top of your bad, high-limit credit card list. Non-citizens in particular can benefit from this card as no SSN is required.
When you apply for the Petal® 1 Visa®, you first go through the Petal® credit card pre-approval process. The issuer will then tell you whether you are eligible to make an official application for:
- The Petal® 1 and Petal® 2 credit cards
- The Petal® 1 only
- No Card
You must apply for the Petal® 2 if you have the opportunity, but you will likely be approved to apply for the Petal® 1 Visa® if you have poor credit.
In addition to its many benefits, the Petal® 1 Visa® even offers an Uber credit program that allows you to earn rewards for Uber rides when you pay with your Petal® 1 credit card.
Total Visa® Credit Card: Best Guaranteed Instant Approval Credit Card with a $1,000 limit
One of the closest credit cards to guaranteed approval, the Total Visa® credit card offers incredibly high approval odds and instant approval for the majority of applicants. Better still, it is an unsecured credit card, so no deposit is required.
The application process is simple and only requires the following information:
- Surname
- Email-address
- Physical address (no po boxes)
- Phone number
- Date of birth
- Citizen service number
- Employment status
- Net monthly income
- Estimated monthly expenses
If the bank has trouble verifying any of the above information, it may take a few days to process your application. However, this is rare and you will most likely be instantly approved for the card with an initial credit limit of $300.
While this is far from a $1,000 limit, the credit card offers a credit limit increase after 12 months of borrowing. The lender will automatically screen you for a raise and send you an offer, or you can specifically request a credit limit increase of up to $1,000. Please note that if you accept a credit limit increase offer, you will be charged a higher fee.
While you can quickly access your line of credit without making a deposit, there is an $89 program fee to open an account. This is the first of many fees charged by Total Visa®. So while it can bring you instant money and approval, it can cost you a lot of money in the long run.
Discover it® Secured Credit Card: Best cash-back credit card with guaranteed approval and a $1,000 limit
When it comes to guaranteed approval credit cards, don’t expect to see a $1,000 line of credit and cashback rewards on offer. But Discover it® Secured is a unique card. It has high approval odds, a deposit and associated credit limit of between $200 and $2,500, and a generous rewards program.
How the rewards work:
- 2% cash back on gas and restaurant purchases (up to $1,000 per quarter)
- 1% cash back on all other purchases (unlimited)
- 1-on-1 cashback match for the first 12 months (every dollar you earn in cashback is doubled in your first year of card ownership)
In addition, the Discover it® Secured credit card does not charge any annual fees or foreign transaction fees. It even reports your activity to the credit bureaus (great for building credit) and gives you free FICO scores monthly.
You May Have Better Luck Applying For A $1,000 Loan
Many people turn to credit cards because they offer a revolving line of credit that you can reuse after you’ve paid off your debt. But if you’re looking for $1,000 now — and aren’t worried about needing access to credit later — you might want to consider a personal loan.
With the lending networks listed below, you can qualify for a $1,000 bad credit loan and have the money in your linked checking account within 24 hours. And although these loans come with an interest fee, you may not find all of the start-up fees and annual fees associated with most unsecured bad credit cards.
With these networks, you submit a form to each website. The network will then submit your loan application to each lender it works with. If you qualify, you can receive multiple credit offers by email within minutes of submitting the form.
MoneyMutual
The MoneyMutual network of lenders offers short-term personal loans of up to $2,500 to qualifying borrowers. The key is that you get a personal loan so you can use the money however you want.
Most lenders expedite the processing of applications. If you qualify and provide all the required documentation, you can receive your loan proceeds the next business day.
- Short Term Loans up to $5,000
- Online marketplace for lenders
- The money is available within 24 hours
- A simple online form takes less than 5 minutes
- Trusted by over 2 million customers
- Not available in NY or CT
CashUSA.com
CashUSA.com offers one of the largest credit limits on this list, with lenders considering applications from bad credit borrowers of up to $10,000.
And unlike a credit card, you can maintain a fixed monthly payment for the duration of your loan. To qualify for a loan, you must have a credit check, be at least 18 years old, and be a US citizen or permanent resident. You must also earn at least $1,000 after-tax income, have a checking account in your name, and provide work and personal phone number and valid email address.
- Loans from $500 to $10,000
- Get a credit decision in minutes
- Receive money straight to your bank account
- Use the loan for any purpose
Creditloan.com
CreditLoan.com has a network of lenders that offer loan options for bad credit up to $5,000 – and loans up to $40,000 if you have good credit or better. The network has a dedicated team of lenders who work with borrowers with bad credit. So this can be a good option if your credit rating is not satisfactory.
You must have a checking account in your name to qualify, and CreditLoan.com allows borrowers only one active loan across the network at a time. If you need a second loan and wish to apply through the network, you must pay your first debt before proceeding.
- Loans from $250 to $5,000
- Cash deposited directly into your account
- Get cash tomorrow ASAP
- Bad Credit
- More than 750,000 customers since 1998
BadCreditLoans.com
BadCreditLoans.com offers loans ranging from $500 to $5,000, so qualified applicants should have no problem finding the $1,000 loan they need.
Borrowers also pay no fees for using the service because, like the other networks on this list, BadCreditLoans.com receives referral fees from lenders who borrow from consumers they find through the site.
- Loans from $500 to $10,000
- Contact a lender
- Simple form and fast financing
- Receive your money as soon as possible next business day if approved
Personalloans.com
You can qualify for a loan of up to $35,000 on PersonalLoans.com, although not every applicant qualifies for such a large loan. But if you qualify, you’ll receive credit offers by email within minutes.
To be eligible, you must have a credit check, be at least 18 years old, meet the lender’s income requirements (through employment, disability, or Social Security benefits), and have a valid checking account in your name.
- Loans from $500 to $35,000
- Large network of lenders
- Quick credit decision
- Use the loan for any purpose
- Funding within 1 business day if approved
CashAdvance.com
You can get a same-day loan with a cash advance from CashAdvance.com. These loans usually have very high-interest rates, making them a last resort if you run into trouble and have no other way to borrow the money.
A cash advance has no monthly payment. Instead, you pay off the entire loan—including interest—in one go over a repayment period of two weeks to 30 days. If you cannot repay the loan at this time, you have to reckon with very high costs that make these loans incredibly expensive.
- Short-term loan from $100 to $1,000
- Large network of lenders
- Credit decisions in minutes
- Funding next business day if approved
Can I get a $1,000 limit card if I have bad credit?
Yes, but you may need to put a deposit on the card. This is because there are different types of credit cards. The two most common types are secure and unsecured.
A secured credit card that comes as close as possible to “guaranteed approval” may not require a credit check for approval. Instead, each cardholder must support their account with a refundable deposit, which in most cases is equal to their card limit.
So if you want a credit card with a $1,000 credit limit, you’ll need to put in a $1,000 deposit when you register for your account. The bank will hold your deposit until you close your legitimate card account. At this point, you will receive a check for the full amount of your deposit.
Please note that your deposit does not count as payment. Even after you make the deposit, you still have to pay for every charge you make on the card. The amount of your monthly payment depends on your current balance.
Secure cards are often more desirable than their unsecured siblings:
Refundable deposit:
Imagine the situation where you are given a choice between a secure Visa card and an unsecured subprime card, for example. The secured card requires a $200 deposit but otherwise waives most other fees. Compare this to an unsecured card with a $200 credit limit that charges a $79 annual fee and a one-time $99 initial fee. That’s $178 in upfront payments, while the secured card will eventually refund your $200 deposit. I know which ones I would choose.
Higher Credit Limits:
Most secured credit cards allow you to increase your initial deposit to support a higher credit limit, sometimes as high as $5,000 to $10,000. These limits are virtually impossible to reach with an unsecured subprime card, with the maximum credit limit reaching as high as $1,000 after a few years. Occasionally, a secured credit card can give you a higher credit limit without an additional deposit, which may be preferable to upgrade to an unsecured card.
Lower costs:
If you’d rather not spend money on credit card fees and interest, it’s better to choose a secured card than unsecured subprime. The relatively low risk of a secured card allows the issuer to charge a lower APR and charge less. For example, secure cards do not charge any startup or monthly maintenance fees. In addition, their interest rates can be several percentage points lower than their unsecured counterparts.
Better Benefits:
Some secured cards offer bonuses of 3% or more on certain purchases. The Discover it® Secured Credit Card offers new cardholders a cashback match in the first year after account opening. The Secured Sable ONE credit card offers cell phone protection, car rental insurance, and other premium benefits. Some secured business credit cards are available to business owners with bad credit.
No credit check:
Secured cards require collateral rather than good credit. Publishers almost always accept applications for secure cards, depending on the deposit. Most don’t pull hard on your credit score, which can hurt your already bad credit score. However, secure cards routinely report your payment activity to a credit bureau, which uses this information to update your credit score. You can speak to a card’s customer service representative to review the reporting policy.
Although these cards don’t sound traditional, they have all the benefits you’d expect from a credit card: you can use them anywhere credit cards are accepted, you can transfer money monthly, and you can also improve your credit score. to score. Payment history because card issuers report your payment history to the big three credit bureaus every month.
Secure vs. unsecured credit cards
An unsecured credit card has no collateral – which means no deposit is required for approval. When working with applicants with poor credit ratings, banks typically have a backup plan in place in case the consumer defaults on their card account. As a result, you may have more trouble finding an unsecured card with a $1,000 credit limit.
Virtually every bank or issuer that offers unsecured credit cards for bad credit wants a new customer to start small. Most cards in this category have an initial credit limit of around $300. Some cards, like the Surge Mastercard®, start qualified applicants with a credit limit of $300 to $1,000.
These cards often have a higher than the average interest rate, as well as an annual fee, any startup fees, and other fees. In this way, the bank compensates for the risk of lending to a consumer with a bad credit rating.
Typically, unsecured bad credit cards are not the best credit card deals. Because the issuer seeks to offset the risk of lending to subprime consumers, the card has several disadvantages, including:
Lean Credit Limits:
Your initial credit limit can be as low as $200. Issuers state that a small credit limit does not pose too much of a risk for a subprime cardholder. Over time, your credit limit can increase through responsible behavior, e.g. H. if you pay your bills on time and keep your unpaid balance relatively low compared to your credit limit.
High-interest rates:
In most cases, you will come across APRs in the 25% to 36% range. These tariffs punish your budget. It’s a smart move to avoid interest altogether by paying your entire balance each month before the grace period (more than 21 days after the end of a payment cycle) ends. Beware of the occasional credit card that doesn’t offer a grace period. These cards charge interest from the transaction date. If you are unsure about the grace period, please contact card customer service.
An avalanche of fees:
All cards, even those with excellent credit ratings, routinely charge foreign transaction fees and fees for cash advances, wire transfer transactions, and late payments. But some unsecured bad credit cards pile up fees that are unique to their segment. These include overseas transaction fees, monthly maintenance fees, one-time start-up fees, additional card fees, and even setup fees.
Negligible benefits:
Many unsecured subprime cards offer few benefits. Most bad credit cards don’t pay rewards for purchases, don’t offer sign-up bonuses, or offer 0% introductory APRs. Travel allowances are usually not an issue. At best, some of these cards offer fraud protection and free credit reports.
Buried costs:
Some bad credit cards hide some fees in the fine print. For example, we are aware of at least two cards with no grace period (such as Applied Bank’s secure Visa credit card). Another undesirable cost is compensating for credit limit increases. These cards rain down on your parade by charging a fee that can be as high as 25% of the credit limit increase. There are very few business credit cards in this category.
If you need $1,000 and don’t have a deposit to open a secured credit card, consider taking out a personal loan to help cover your ongoing expenses. While a loan doesn’t offer the revolving credit you get from a credit card, you can still build credit without paying as much for the privilege.
Which bad credit card has the highest limit?
Most unsecured bad credit cards offer an initial credit limit of around $300. That’s because the bank wants you to prove that you’re a responsible borrower before they will grant you another loan.
If you’re willing to pay a refundable deposit, you can find a secured credit card with much higher spending limits and virtually guaranteed approval.
Consumers often only look at the possible credit limit when researching which credit card to apply for. While your available balance is pretty important, it shouldn’t be the deciding factor in your research.
When a bank or card issuer creates a new card for applicants with bad credit, they need to assess the risk they are taking and create enough rewards to make the card worthwhile for them. That means additional fees and an interest rate that is much higher than the interest rate offered to someone with good credit.
A bank takes on more risk when it extends a large unsecured line of credit. That means it has to charge more to offset the risk. You’ll find that cards with higher credit limits often end up costing you more.
So while you’re looking at the credit limit of a particular card, you should also look at the interest rate, annual fee, startup fees, and monthly service fees. It can make that larger limit look a lot less attractive.
What is the easiest credit card to get with bad credit?
We’ve already talked about secured and unsecured credit cards, but there’s a third type of card that falls in a somewhat gray area between the two. Depending on your credit needs, this could be just the card for you.
In most cases, a business credit card will only work at the business associated with the card. Sometimes the company that owns the store has sister franchises that also accept the card. For example, you can use the Gap Visa® credit card at The Gap, Banana Republic, Old Navy, Athleta, and Hill City.
These stores understand that competition from other brands makes it harder to build brand loyalty. One way to keep customers coming back is to make it easier for shoppers to purchase a business credit card.
You probably asked a cashier to sign up for the store’s credit card. In most cases, the process can be completed at checkout and you’ll be able to use your new credit limit that day. But what the teller won’t tell you is that these cards often have sky-high interest rates and other fees to pay for their easy availability.
And while some cards offer basic in-store rewards, like birthday vouchers or points you can redeem for future discounts, you won’t find many cash rewards or other perks that make these cards stand out.
And most importantly, you can’t use many loyalty cards outside of the store. So if you’re looking for $1,000 limit credit cards that you can use anywhere, don’t look here. Still, these cards are generally easy to qualify for and can help you build credit if you spend responsibly and pay on time.
Aside from a loyalty card, the easiest way to add plastic to your wallet is with a secured credit card. The card issuer may not require a credit check for approval, and some will even accept your application if you are in bankruptcy proceedings.
Secured cards, which require a cash deposit, are among the easiest cards to approve.
You need a larger upfront investment for these cards because they require a refundable deposit equal to your credit limit, but they rarely have the high fees you find with store cards or other unsecured credit cards. Some secured credit cards even offer cash rewards that give you back a percentage of every charge you make on the card.
In short, a secured card is the cheapest way to build credit if you currently have bad credit. Alternatively, you can look at a credit building account, but this is a loan you are paying yourself and will not help you get the money you are looking for today.
How do I get a credit limit increase?
This depends on the type of credit card you have. Different types of cards handle credit limit increases differently.
If you have an unsecured credit card, you can use one of several methods to request a credit limit increase. Many card issuers have a link on their website or mobile application that will help you answer a few questions and get an almost instant response to your query.
These questions typically concern your annual income and mortgage or rent payments. Essentially, the card issuer wants to determine how much of your income is currently flowing into accounts, also known as your debt-to-income ratio. If you are approved, the new credit limit will take effect immediately.
Most issuers also consider calling to increase the credit limit over the phone. To find the best phone number for your card issuer, look at the 800 or 888 number on the back of your card.
Capital One automatically maintains accounts and will review your account every six months to see if you qualify for a credit limit increase. If you qualify, you will automatically receive an increase in your credit limit.
Some secured credit cards also give you a higher credit limit when you add up your deposit. Some will consider increasing your line of credit without an additional deposit if you can demonstrate that you are using your account responsibly, e.g. B. Always pay on time and keep your balance low.
The key to a higher limit is timing the request correctly. Most credit cards only increase your credit limit every six months. If you have a new account or have received a higher credit limit within this time, you may receive a rejection.
You probably won’t succeed if you also have recent late payments or overdrafts. A credit limit increase is a reward for responsible financial behavior. Therefore, the publisher will not reward you if you have recently made mistakes.
You may also want to apply for a higher credit limit if you get a raise at work. Since you are required to provide your annual income when you apply, a higher salary may qualify you for an expanded credit line.
You should also refrain from asking for a higher credit limit if you currently have a large balance on your card. A publisher will see this as a desperate attempt to add more points because you’ve exhausted your other options.
Increasing your credit limit not only gives you access to more available credit but also improves your credit utilization – which plays a key role in determining your overall credit score.
Credit Utilization Rate
You can calculate your credit usage by dividing your current credit card balance by the total available balance on the card. For example, a card with a limit of $1,000 and a balance of $250 has a usage rate of 25%.
The lower your credit utilization, the better your credit rating. Not using most of your available credit makes you look more responsible to lenders.
A general rule of thumb is that the lower your consumption, the better your credit score. Less than 10% utilization is very good and less than 5% is excellent.
Increasing the credit limit gives you access to more available credit. If you don’t charge new fees, your credit usage will improve immediately.
For example, consider a $1,000 card with a 25% credit utilization. If the issuer approves an increase in the line of credit to $2,000, that card will now have a utilization of 12.5% - a big improvement.
You may think that 0% utilization is best for your credit, but that doesn’t have to be the case. FICO reports that “a low revolving balance is less risky than no balance at all. A low balance indicates that you are using credit responsibly.”
Do I need a bank account for approval?
Each credit card company has different rules, but most prefer that you have a bank account for approval. This allows you to make recurring payments online in good time. Otherwise, the bank is dependent on you paying on time every month.
Many bad credit cards require monthly recurring payments on a specific date. This is only possible if you link an active checking or savings account to your credit card account.
If you’re skewed towards a secured credit card due to the lenient approval requirements and lower fees, you’ll need a checking account to transfer your deposit and payments to the credit card company.
When you apply for a secure card online, the issuer provides a way to link your bank account so you can transfer your deposit to the issuer. This usually takes between one and three working days.
Some card issuers even consider your bank account history before approving a new card. If you can manage your checking account responsibly – i.e. H. without recent overdrafts, accidental checks, or insufficient funds – you’re more likely to successfully manage your new credit card. Without an active account, the publisher cannot see this information and can use it against you.
People choose not to have a bank account for a variety of reasons. The rapid growth of online banking is making it easier than ever for almost everyone to open an account.
An online bank allows you to deposit paychecks or benefit checks instantly while earning interest on your savings and adding a debit card to your wallet. And because these banks exist primarily online, they don’t have the overheads of a larger bank and can pass those savings on to you in the form of better interest rates and other affordable financial products.
Traditional banks vs. online-only banks
Another important benefit of online banking is that it doesn’t matter where you are. All you need is online access to manage your account. You don’t have to live with a branch to make your trades.
You can sign up for an online bank account in minutes. Most banks do not have minimum deposit requirements and those that do typically only require $5 to open an account. It’s a small investment if you want it to make the difference between credit card approval and rejection.
How can I build credit with a bad credit card?
The best way to build credit is by using loans. But if you irresponsibly use your existing credit, for example by building up debt and paying late, it can have the opposite effect.
If you have bad credit, it’s probably because you’ve made financial mistakes in the past. You can set them further back in time by replacing the negative items on your credit report with positive items.
As you rebuild your credit, pay your bill on time and keep a low balance to improve your credit score over time.
Each negative mark in your credit history loses attention over time. A single 30-day late payment can lower your credit score by up to 100 points. But if you continue to pay on time after making this mistake, the effect will wear off over time and your score will continue to increase.
However, if you don’t have a credit account to replace that negative item, it will remain on top of your credit file for up to seven years.
All information – positive or negative – is only included in your credit file if your credit card issuer or lender reports your payment history to any (or all) of the three major credit reporting agencies Equifax, TransUnion, and Experian.
Some lenders only report to one or two of the agencies. Therefore, you can have a different credit rating with each of the three services.
Most bad credit card issuers – both secured and unsecured – report to all three bureaus. However, some will not. For example, a prepaid card doesn’t affect your credit score at all.
That’s because these cards aren’t technically credit cards. They are closer to debit cards because they allow you to use the money that you have already deposited into the account. They do not include an associated credit limit and do not affect your credit score.
But other forms of credit, including personal loans, credit cards, auto loans, mortgages, and other credit products, allow you to demonstrate to lenders that you are a responsible consumer who pays your bills on time.
This not only improves your credit rating but also helps you qualify for cheaper and more lucrative financial products in the future. A new credit card also improves your credit utilization, which accounts for 30% of your overall FICO credit score. See the answer above for more information on this topic.
What rewards can I get from bad credit cards?
Most unsecured subprime cards offer no rewards, while consumer cards with reasonable credit or better usually offer some type of reward. But the best credit card deals offer cashback, usually as tiered rewards.
The Aspire® Cash Back Reward Card refunds cash on eligible purchases in the form of a bank statement.
Aspire® Cash Back bonus card
With the Aspire® Mastercard® credit card, you receive a 3% cashback bonus on gas, grocery, and incidental payments
Earn a 1% cashback bonus on all other purchases
Credit limit up to $1,000, subject to credit approval
Pre-qualify without impacting your credit score
No deposits or program fees
Free access to your Vantage 3.0 score from Equifax
Your credit score is available in your online account 60 days after opening your account. (Registration required) The free VantageScore 3.0 credit score provided by Equifax is for educational purposes only and may not be used by the Bank of Missouri (the issuer of this card) or any other lender in making credit decisions.
Virtually every secured card is a guaranteed approval credit card and offers more opportunities for rewards. The Secured Sable ONE Credit Card and the Discover it® Secured Credit Card compete for the title of the best credit card in this group.
Both pay tiered cashback rewards, but only the Discover card offers new cardholders a dollar-for-dollar cashback match in the first year after opening an account, giving it an edge in the top cashback sweepstakes.
Be sure to read the fine print regarding cashback rewards offered by subprime credit cards. Some may limit how you can redeem your rewards (e.g. only through a credit to your bank statement) or set conditions for the highest cashback rate.
Am I eligible for a Rewards credit card if I have bad credit?
The Secured Sable ONE Credit Card and the Discover it® Secured Credit Card are two options when you are looking for a secured credit card that offers cash rewards or reward points in the form of a percentage of each transaction credited to your account.
Your reward percentage depends on the card you choose and your credit history.
However, since these are secured credit cards, you will need to make a refundable deposit before you can access your new account. This deposit will fund your account and make it easier for you to qualify for a new card, but it can also make the card harder to get if you don’t have the funds to make a deposit.
If an unsecured card is faster, consider the Aspire® Cash Back Reward Card. Not only does this card give all cardholders free access to their Equifax credit score (which is great if you’re tracking your credit build-up progress), but you can also earn cashback rewards on eligible purchases, including gas, groceries, and utility bills.
This card accepts applications from consumers with less than perfect credit and has an initial credit limit of up to $1,000 for all approved applicants.
But don’t let the potential of the rewards fool you and sign up for this card for this feature only. When you factor in the card’s potential annual fee (some applicants are eligible for a $0 annual fee) and the high-interest rates, you’ll need to dump thousands of dollars on this card each year to break even.
And that’s if you pay out your credit every month. Almost every rewards credit card charges a higher than average interest rate to pay for the rewards that the card pays to each cardholder.
Some applicants may only be eligible for this card with an APR of 20% or higher. That rate can eat up all the money you make from the cash rewards, so be careful.
$1,000 limit credit cards for bad credit
Anyone who says the best thing in life is free must have great credit. For others, finding a credit card with bad credit requires patience, research, and money.
That’s because almost every unsecured credit card charges high-interest rates and fees. Secure cards may be cheaper, but you must pay a refundable deposit to get this guaranteed approval.
Whichever option you choose, know that with patience and discipline, you can achieve your goal of finding credit cards with a $1,000 limit for bad credit—and over time, you’ll find that you have good credit, and a higher credit limit and more financial peace.
This is how we rate our credit cards
With bad credit, it is difficult to find the right credit card. That’s why we heavily weighed the following factors to determine the best credit cards with guaranteed approval and a $1,000 bad credit limit:
- Required Qualifications
- Costs
- Interest charges
- credit limits
- Rewards and Bonuses
- Loan Conditions
These and many other factors are part of our 5-star credit card rating methodology for all card categories. Our star ratings are unbiased and independent of our partners and advertisers.
