Were you drawn in by the guaranteed approval credit cards with $1000 limits for bad credit tagline? Are you curious about these cards and if they indeed exist? Then, jump right into the meat of this article.
We will discuss these cards, what they are, the ones you should be considering, whether they are accessible to bad credit borrowers and if there are alternatives to explore.
Let's get right into it;
Guaranteed Approval Credit Cards With $1000 Limits for Bad Credit: Myth or Reality?
Guaranteed approval credit cards don't exist, not even if your credit score is excellent. That's because there are no guarantees anywhere. No credit card offers 100% guaranteed approval. Your chances are higher with some than others if you meet their basic eligibility requirements. It's cards with high approval rates and $1000 limits that are generally advertised as 'guaranteed approval credit cards with $1000 limits'.
If you have bad credit, your chances of getting a $1000 loan are higher when you use a secured card than an unsecured card. Secured cards need you to make a refundable deposit to match the spending limit you want. Securing the loan with collateral (security deposit) helps you beat the interest rate or APR by a few points.
What's the Best Way to Get Credit Cards With $1000 Limits for Bad Credit No Deposit?
Here's what most people do when they're in a financial emergency and can't get cash from a loved one or bank - request a loan. You can get a loan from any secured credit card discussed in this article. Let's go through what you can do to increase your chances of getting credit using these cards.
Make down payments: Some cards need you to make security deposits to access some credit. Can you make these security deposits? If yes, you stand a good chance of getting some credit. Note that these deposits are refundable and remain yours so far you keep up with payments.
Let your employment history reflect job stability: Applicants with fewer minimum position changes are usually considered more reliable borrowers. What jobs have you been at and how long have you been at your current job?
Improve your debt-to-income ratio: What's your debt-to-income ratio? The lower this ratio, the higher your chances of getting qualified for credit. You can lower this ratio by paying off high-interest debts or taking a debt consolidation loan.
How Much Do You Want?
5 Most Popular Unsecured $1000 Credit Limit Credit Cards For Bad Credit
First Progress Platinum (by MasterCard)
What's most interesting about First Progress Platinum's cards is its low-interest rate, about 11.49%, which is far below the average interest rate on most credit cards, even for persons with stellar credit. Yet, it is accessible to people with low credit scores and no credit history.
However, to access credit, you must make an initial deposit of between $200 and $2000. Your security deposit dictates your credit limit. With time, you can make an official request for an increase in credit limit, up to $5000.
Like others on this list, it reports monthly payments to the three major credit bureaus of TransUnion, Experian, and Equifax.
OpenSky cc (by Visa)
One of OpenSky's biggest claims is that 99 percent of its users who have no credit built up their credit scores within six months of using the card. It's therefore not surprising that it is a popular choice among people with thin credit histories.
Qualification here isn't based on your credit score. It's rather based on your paying a security deposit, usually between $200 and $3000. This deposit, of course, is refundable. By paying a deposit, you reduce the lender risk, and the lender can thus provide you with some cash without checking your credit score.
The Visa cc has a pretty low APR compared to its rival card, an average of 20%. It has an annual fee of $35.
Bank Americard Secured cc
Bank Americard secured cc is another popular choice, especially among those who do not fancy those annual fees some credit card issuers charge. Bank Americard secured cc holders are charged an annual fee of $0. It also has a potentially higher credit limit than many credit cards, $4900. Here's where things get even more interesting. Depending on your credit score, you could qualify for a deposit return.
Card users can access their updated FICO scores monthly for $0. This can be done via the regular mobile or online banking app. This app provides educational resources on what affects your score, budgeting, and how to use your credit cards responsibly.
FIT Mastercard, a credit card issued by the Bank of Missouri, is an ideal choice for borrowers who want to borrow little cash advances and build their credit score in one breath. Cardholders have an initial credit limit of $400, which could increase with time. A cardholder could qualify for an increase in credit limit after six months of use, up to $2000. Monthly payments are also reported to the three major credit bureaus, which can help you build your credit over time.
This card can be used in all stores and locations where Mastercard is accepted. The application process doesn't take very long to complete too.
If you want a high limit on first use, you should pass FIT Mastercard for an alternative like Reflex. Its new customers have an initial credit limit of $1000, which could go as high as $2000 in six months. However, you need to have a checking account to qualify for its credit.
Its APR is typically between 24.99% and 29.99%, rivals that of many store cards, and is an excellent choice for bad credit borrowers. On average, it takes less than ten minutes to apply for some cash. Its users enjoy $0 fraud liability coverage for unauthorized charges and do not pay maintenance fees in the first 12 months of use. Beyond the first year, you're billed $120 for maintenance.
How to Raise My Credit Limit?
See If You Qualify for a Credit
The first step to increasing your credit ceiling is checking with the credit card company to know if you qualify for a raise in the first place. Some criteria have to be met to qualify for a raise. How do you measure up against these criteria and metrics? A credit card holder may be eligible for a credit limit depending on their payment record and how long they've been a cardholder, among others.
Request an Increase
Request an increase if you qualify for one. Speak to the credit card company through any of its customer support channels, and they could help you increase this limit. Or, you could go through the FAQ corner on the company's website. You should find a few answers on how to request an increase.
Make Wise Use of Your New Credit Limit
Approved? Got a raise in your new credit limit? Before allowing compulsive borrowing to take over, create time to review your needs and borrow only what you need to take care of them. You may want to create a priority list to help you knock off what's not essential. Borrowing only what you can afford is key to keeping a clean score.
No Luck Yet? Check Out This $1000 Loan Alternative
No luck with those cards? Why not apply for an online $1000 loan? We recommend using a loan broker to increase your chances of getting one. A reliable loan broker like US Installment Loans can connect you to its partner lenders with 97% approval rates.
US Installment Loans is the choice of hundreds to thousands of borrowers because of its zero origination and processing fee policy. Its partner lenders consider people with bad credit, do not make hard credit inquiries on applicants' profiles, make funding decisions quickly, and fund applicants within the same day or the following business day.
Here's how to apply for a loan through US Installment Loans:
- Fill out the short, simple form on the website. You will be asked basic questions about your finances. You are also required to enter basic biodata, like your name and contact information. Supply only correct answers to avoid any hitches.
- Submit the form, and you will be connected to a few lenders with loan products for you. Each lender assesses your profile and makes an approval decision in under five minutes. You will be sent a quote if approved.
- Review and compare the offers from these lenders to help you make a smart lending decision. Lenders are generally compared based on the following metrics - interest rates, loan terms, approved loan amounts, loan T&C, debt collection practices, and whether or not payments are reported to the major credit bureaus.
- Chosen an offer from the available yet? Sign it and submit it. You should expect to be funded soon after, typically the same day or the following business day.