Is it a must you have a perfect credit score to get a credit card? The answer’s a no. If you’re one of the people with a less-than-stellar credit score, this post is purposely for your kind of situation. I’ve brought together some of the best guaranteed approval credit cards with $1,000 limits for bad credit no deposit, which also report to the major credit bureaus.
Therefore, not only will you have emergency funds for your unexpected expenses. But also you can build or rebuild your credit report along the way. Even better, you’ll get to enjoy some of the benefits that are available when you get approved for a regular credit card. That includes chargeback, nationwide/ worldwide shopping, fraud coverage, and even cashback rewards.
What are the Best Guaranteed Approval Credit Cards With $1,000 Limits?
First of all, you should consider a guaranteed approval credit card before the normal unsecured cards if your credit history is less than perfect. Why do I say this?
Every time you apply to a card issuer, they’ll perform a credit check on you. In many cases, this check will be a hard inquiry, which will not only show up in your next credit report but also cause a temporary dip in the score. And the more hard inquires you get, the dirtier your report gets and ruin your chances to better credit products.
But, anyway, the thirteen guaranteed approval credit cards with at least a $1000 limit no deposit that you can get with bad credit include:
- Best Overall: Discover it Secured Credit Card
- Best of Rate: First Progress Platinum Prestige MasterCard
- Best of Beginners: OpenSky Secured Visa Credit Card
- Best of Credit Limits: First National Bank of Omaha Secured Visa Card
- Best of Deposit: GO2bank Secured Credit Card
- Best of Foreign Transaction: Capital One Platinum Secured Credit Card
Best of Alternatives:
- Surge Platinum Mastercard® Credit Card
- Capital One Platinum Mastercard Credit Card
- U.S. Bank Secured Visa Card
- OakStone Gold Secured Mastercard
- First Progress Platinum Elite MasterCard Credit Card
- Merrick Bank Classic Secured Visa Credit Card
- First Progress Platinum Select Mastercard Credit Card
Don’t Confuse Guaranteed Approval Credit cards with Instant Approval Credit Cards
In truth, comparing Instant Approval vs guaranteed approval credit cards is just like dealing with a word and its antonym. Yes, they’re both credit cards that you can get, but they have opposite eligibility requirements.
For instance, an instant approval credit card falls in the unsecured category, which means you need good credit to qualify. In fact, most of the card issuers require you to apply without any history of bankruptcy at all, or at least recently.
On the bright side, however, instant approval credit cards necessarily don’t require a security deposit. You’ll also have access to plenty of perks, including higher credit limits, lower interest rates, one-time bonuses, travel credits, amongst other rewards.
True, some guaranteed approval credit cards will get you cashback rewards when you spend a certain amount. But then, just as the name, you’re “guaranteed to be approved” for these cards, regardless of your credit score. They’re more like that second chance credit card you pick to repair a damaged credit score.
Nonetheless, many of the second chance credit cards I know about don’t require a security deposit. But guaranteed approval credit cards are within the category of secured accounts. So, you’ll need to pay a minimum security deposit before you can start using it.
As a matter of fact, the deposit you place is what determines your card’s credit limit in most cases. On the contrary, the deposit amount is more like collateral and the credit card company does refund when you decide to cancel or transfer your card.
A Guaranteed Approval Credit Card’s a Friend You want
That’s right. As we discussed how long your credit score will improve with credit cards, I mentioned those points are very crucial in your financial health. When these points are less than average, many lenders will be wary to deal with you. And not just for the credit cards, but also some of the best buy now pay later catalogues.
With a dicey report, it will also be impossible to access those government-backed home loans you can get with a 650 credit score. Or even worse, turn a supposedly easy apartment hunting into a nightmare
However, the therapist said our problems are usually temporary, and so is a low credit score. If you’re truly up for it, you can start building your credit report back and get out of the bad credit situation in no time. A guaranteed approval credit card is a great friend in that part, provided you use and pay off the balance before the due date.
As was mentioned, these cards work just like the normal credit card, only that the providers have based them on bad credit histories. So, you’ll have a chance to improve your credit score, but the lenders will still limit your risk of defaulting. Hence, the reason they (lenders/ card issuers) will ask for a security deposit, charge you higher fees, and also offer smaller credit limits.
Features, Pros, and Cons of the Various Guaranteed Approval Credit Cards with $1,000 Limits
|Guaranteed Approval Credit Card||Minimum Deposit||% APR for Purchases||Grace Period|
|First Progress Platinum Prestige MasterCard Credit Card||$200||9.99%||25 Days|
|OakStone Gold Secured Mastercard||$200||13.99%||25 Days|
|First Progress Platinum Select Mastercard Credit Card||$200||13.99%||25 Days|
|Merrick Bank Classic Secured Visa Credit Card||$200||17.25%||25 Days|
|OpenSky Secured Visa Credit Card||$200||17.39%||25 Days|
|First Progress Platinum Elite MasterCard Credit Card||$200||19.99%||25 Days|
|First National Bank of Omaha Secured Visa Card||$300||20.24%||21 days|
|Discover it Secured Credit Card||$200||22.99%||25 Days|
|GO2bank Secured Credit Card||$100||22.99%||25 Days|
|U.S. Bank Secured Visa Credit Card||$300||23.99%||24 -30 Days|
|Surge Platinum MasterCard® Credit Card||N/A||24.99%||25 Days|
|Capital One Platinum Secured Credit Card||$200||26.99%||25 Days|
|Capital One Platinum MasterCard Credit Card||N/A||26.99%||25 Days|
Here are six of my best picks on guaranteed approval credit cards with a $1000 limit for bad credit and low scores.
Best Overall: Discover It Secured Credit Card
- 22.99% variable APR
- Up to 2% cashback rewards
- At least $200 refundable deposit
- Up to $40 late payment penalty fee
- Use cashback rewards at Amazon.com
Even though the annual interest is a little high, the Discover It secured credit card is my number recommendation. Not only does it accept application from those with low credit score and bad credit, but do report your history to all the three major credit bureaus. So, you can build your credit report back fast if you use the card responsibly.
- It doesn’t charge annual fees
- Has a maximum credit of up to $2500
- Doesn’t charge foreign transaction fees
- Easy to graduate to an unsecured credit account
- Shows your FICO credit score at no charge
- You can use rewards with Amazon.com/ PayPal
- It has a relatively high APR rate
- Has limited acceptance outside the U.S
Best of Rate: First Progress Platinum Prestige MasterCard
- 9.99% variable APR
- Up to $49 as an annual fee
- 3% Foreign traction fees
- $200-$2000 security deposit
- Up to $40 late payment penalty fees
Overall, the First Progress Platinum Prestige MasterCard Credit Card has the best annual interest rate for purchases. It counts at 9.99% APR, but it’s a variable one. So, it’s likely to change based on the prime rate in the market.
On top of that, the credit card doesn’t have a minimum credit score requirement. Thus, you can apply with no credit history or bad credit. Even better, the issuer does report your monthly performance to the three major credit bureaus, which should help establish your report.
- It has a low annual percentage rate
- Quick and easy to get approved
- You can apply with no or bad credit
- Gives free access to your credit score
- Reports to all the major credit bureaus
- It has many fees to pay
- Doesn’t offer any rewards
- Not available in Arkansas, Iowa, and New York
Best of Beginners: OpenSky Secured Visa Credit Card
- 17.39% variable APR
- Up to $35 as annual fees
- $200-$3000 security deposit
- 3% foreign transaction fees
- Up to $38 as late payment fee
If you’re looking for your first credit account, the OpenSky Secured Visa Credit Card is a great choice to start with. It doesn’t require a credit check or even a bank account to apply. Then, it has a reasonable interest rate of 17.39%, albeit it varies with the market based on the prime rate.
Furthermore, the guaranteed approval credit card reports your monthly payment information to all three major credit bureaus. Thus, helping you build/ rebuild your credit history fast.
- It doesn’t require a bank account to apply
- You can qualify with no, low, or bad credit
- Can help build your credit score fast
- Has a reasonable maximum credit limit
- It has relatively many fees
- Doesn’t offer any rewards
- No route to directly upgrade
Best of Credit Limits: First National Bank of Omaha Secured Visa Card
- 20.24% variable APR
- $0 annual/ monthly fees
- 3% foreign traction fees
- Up to $40 late payment fee
- $300-$3000 security deposit
If you’re looking for a higher credit limit, the First National Bank of Omaha Secured Visa Card is a perfect example. Not only does it guarantee a limit increase without having to pay an additional deposit, but also you can get even $5000. The credit issuer also doesn’t charge an annual fee, then you can receive your security deposit back as soon you maintain a good payment history.
- It has a high credit limit
- Brings your Fico score for free/ month
- Reports card activity to all three major bureaus
- You can manage your card account online/ mobile app
- Doesn’t charge annual/ monthly maintenance fees
- It offers limited cardholder benefits
- Charges foreign transactions in $USD
Best of Deposit: GO2bank Secured Credit Card
- 22.99% APR for purchases
- 3% foreign transaction fees
- $0 annual maintenance fees
- $100 minimum security deposit
- Up to$39 late payment penalty fees
The GO2bank Secured Credit Card is certainly one of the most affordable lines of credit. It has a minimum security deposit of $100, which is the amount you’ll use to fund and activate your credit account. However, you can request the provider to increase your credit limit, in which case you’ll also have to raise your security deposit.
Also, the credit card is yet another one that doesn’t charge annual/ monthly maintenance fees. But it does have a late payment penalty charge of up to $39 and a foreign transaction fee of 3%after conversion to U.S. dollars
- It has a low security deposit requirement
- Doesn’t require a perfect credit score
- Guarantees free credit score report
- So easy to build or improve your credit score
- Has a mobile app to easily manage your account
- It has no cash back rewards or bonuses
- Doesn’t have an upgrade option to unsecured cards
Best of Foreign Transaction: Capital One Platinum Secured Credit Card
- 26.99% variable APR
- $0 annual maintenance fees
- None foreign transaction fees
- Up to $40 late payment fees
- A maximum limit of $1000
Indeed the interest rate is relatively high, but the Capital One Platinum Secured Credit Card does have its beauty as well. The best feature of all is the lack of foreign transaction fee that some secured cards charge you between 1-3% of the transaction amount.
Also, this secured card doesn’t have the annual/ monthly maintenance fee. Then, you can increase your security deposit to get a higher credit limit of up to $1000.
- You can use it outside the U.S. at no charges
- Easy to apply with a low or bad credit
- You can easily upgrade to an unsecured account
- Has automatic credit line increase (in 6 months)
- Reports your card activity to the major bureaus
- It has a very high APR
- Doesn’t give rewards or bonuses
Use Your Credit Card Responsibly
Well, a credit card is certainly the easiest way you can establish or improve your FICO Score and Vantage Score. That’s why the issuers are still convinced you need a second chance and bring you the guaranteed approval credit cards that you qualify with bad credit or no history.
In the article, I’ve highlighted up to thirteen of such credit cards and briefly discussed half of the ones that are more favorable. The Discover It secured credit card is my number #1 because as it has a limit of up $2500, no annual fees, and gives up to 2% cashback rewards. If you feel the interest rate is quite high, you can check First Progress Platinum Prestige MasterCard Credit Card that has a 9.99% APR. But then, be ready to pay the fees for annual maintenance and foreign transaction.
Nonetheless, irrespective of the guaranteed approval credit card you choose, remember the goal here’s to build your credit history back. So, use your card responsibly while paying your balances on time and in full each month.