DISCLOSURE: This post contains affiliate links from one or more of our advertisers. We may receive compensation if you decide to make a purchase and sometimes if you just click on a clink at no additional cost to you. Please read both our Affiliate Disclosure and Advertiser Disclosure for more info.
IN THIS POST
What does “guaranteed credit” mean? | What kind of credit limits will I get? |
What are the interest rates? | How to rebuild your credit |
What will my credit limit be | |
Guaranteed Approval Credit Cards enable you to obtain a credit card without great credit. There are credit cards that offer you a chance at redemption; you apply and subsequently are denied. Chances are you are in the throes of trying to rebuild your credit and as such are searching for a good “guaranteed approval” credit card. What are the best credit cards for bad credit?
What does “guaranteed credit” mean?
A guaranteed credit card is NOT a prepaid credit card – instead, they’re an option that provides access to credit and is a great way to build or repair your credit score.
A secured credit card is typically backed by a cash deposit, ie., if you deposit $600 into the account, then your credit limit will be $600. Your deposit will normally equal your credit limit. There are several cards that will deduct your one-time fee from your limit. The deposit is a security guarantee and reduces the risk to the credit card issuer: If you don’t pay your bill, the issuer can withhold the money that you deposited.
These cards do have minimum requirements such as a required checking account and a few do have a minimum credit score. Guaranteed can have its exceptions when you don’t have the minimum requirements.
Here is our list of favorite cards to apply for. The approval process is much easier to qualify for vs. others.
It’s important to know that most of these cards do have minimal requirements. For example, some require that you have a checking account. And some require a minimum credit score.
Best “guaranteed” installment loans for bad credit
Total Visa® Card
- 300 credit line..
- Checking account is required.
- 34.99% APR.
- $89 setup fee.
- Free cash advances first year.
- Decreasing annual fee.
Milestone® Mastercard®
Milestone® Mastercard®Apply Now
- 24.9% APR.
- $0 setup fee.
- $75 annual fee.
- $0 cash advance fee first year.
- Fee-free cash advance the first year.
Best secured credit cards (deposit required)
A secured credit card is a card backed by a deposit, which acts as collateral to ensure the lender that they have something to collect if you should fail to pay your bills.
Most companies require a minimum deposit amount, which is usually $200, and this amount is equal to your credit limit.
Annual fees are common with secured cards, but they usually don’t require setup fees to open your accounts—this is probably the main benefit of a secured card over a low-credit unsecured card.
Discover it® Secured
Discover it® Secured Apply Now
- No annual fee.
- $200-$2,500 opening deposit.
- 22.99% interest.
- Automatic credit line increases. Every 8 months, Discover automatically reviews your account for potential credit line increases.
- Cashback rewards. This is where Discover really stands out.
- Free FICO score. Discover offers its customers a Free FICO Score from TransUnion.
OpenSky® Secured Visa® Credit Card®
OpenSky® Secured Visa® Credit Card®Apply Now
- No credit check. No credit check for this card makes it perfect for people with no credit or severely damaged credit.
- $200-$3,000 credit limit. You can deposit as much or as little as you want within this range. Your credit limit is equal to your deposit.
- FDIC insured deposit. Not all secured card companies have this protection, making this a nice little perk.
- 17.39% (variable) APR. This is actually one of the lowest interest rates on the market for subprime credit cards.
- $35 annual fee. The $35 annual fee is also on the low spectrum for this type of card.
Green Dot primor® Visa® Classic Secured Credit Card
Green Dot primor® Visa® Classic Secured Credit Card Apply Now
- 13.99% (F) APR. This card has the second-lowest interest rate we’ve found in subprime cards.
- $39 annual fee. The $39 annual fee is certainly one of, if not the lowest, fees we’ve seen for a subprime card.
- $200-$5,000 credit line. A nice credit limit range, your deposit is equal to your limit.
- No minimum credit score. No minimum score requirements means almost anyone can qualify.
What kind of interest rates can I expect?
Interest rates vary greatly between companies and types of cards, but the average rate for people with bad credit is about 25.33%.
We recommend that you pay all or most of your balance during the grace period (usually 21 days).
This way, you can avoid excessive fees and keep yourself from getting further into debt.
What kind of credit limits will I get?
Most unsecured “guaranteed approval” cards start out with a credit limit of $300, which can be higher for people with higher credit scores.
Secured cards typically start with a minimum limit of $200, and can be as high as you’d like up to their credit max, provided you can make the deposit.
Green Dot Primor Visa Classic will permit you to deposit up to $5,000, but many cards limit this amount to $3,000 or less. It will vary from card to card
How to re-establish your credit with a guaranteed credit card
The goal is to re-establish positive payment history. Remember this is your chance to create positive credit. Don’t make the same mistakes you made in the past. The goal is to pay on time and keep your balances low. Positive payment history will result in a credit limit increase.
This is critical and important. Just remember that there are several factors that are used to calculate your credit score; new credit, credit utilization, credit mix, and payment history.
Conclusion
Guaranteed approval credit cards should be used to get you back on track. The goal is to improve your credit so that you can obtain a traditional credit card. If you have a few blemishes and your score is higher than 620, then chances are you will qualify for a regular credit card.
Chances are, you are reading this because you have less than stellar credit like most people. Don’t despair, you are here so that you can get back on track.
Guaranteed cards are a great start on the road to credit recovery.
About The Author
Marvette Critney
Marvette Critney is a Real Estate Broker in Metro Atlanta, GA, a Credit Expert, and the founder of 750 Credit Score Blog Resource Site, and the well-known blog site Brag Differently. Her credit advice and knowledge have helped hundreds to become homeowners. She is recognized as a leader in her field. Read more.