Best Guaranteed Approval Credit Cards
A bad credit card guaranteed approval is a subprime offer specifically meant for people with bad or slightly fair credit scores.
A credit card is one of the easiest ways to improve your credit score. For this reason, many financial institutions have products dubbed Credit Score Building Credit Cards.
However, the irony is that any individual with a poor credit rating is not qualified for a credit card, and that’s why they need bad credit credit card guaranteed approval.
A bad credit rating can be caused by failure to pay previous loans on time or credit card due for payment.
Numerous reasons can force an individual to default on loan repayment or credit card, like loss of a job because of recession, family emergency, and negligence, among many others.
Irrespective of the reason, the default will be listed by major credit bureaus which are accessible to financial institutions when they conduct a credit check.
What is a credit rating, and why is it essential
A credit score is a cumulative figure based on the total number of loans and repayment you have made. It considers the type of loan you have obtained and how frequently you have been repaying the loan.
Credit history and credit rating play a role in determining the attributes of a loan, such as duration, loan amount, and interest rate. For this reason, they always get so much attention.
Therefore, if you have failed to pay a loan or have late payments on your credit history, be sure to get a low credit score. In most cases, financial institutions will consider an individual with a credit rating of more than 750 as a perfect borrower.
If your score is below that, any attributes of a loan will suffer, meaning that the interest rate will increase, the amount of the loan will reduce, and the duration will also decrease.
Blunders that most people make that affect the credit rating
Many people tend to ignore the significance of a good credit rating until their loan request is rejected. Here are some of the common reasons why you may have a poor credit rating:
- Failing to pay the EMIs or loan installments within the required time
- A continuous record of delayed credit card payments
- Loan or credit card application with several lenders within a short duration
- Closing your credit limit
Getting a bad credit credit card guaranteed approval is the best way to improve your credit rating. Individuals with a bad credit score are limited to only two options to get a credit card.
If you work in a highly recognized firm with stable employment and a 6-figure salary, you can secure a credit card from a financial institution where you have a salary account. This alternative is only viable for individuals with a monthly salary.
For a salaried and self-employed person who needs a credit card, getting a secured credit card is the best alternative. A secured credit card is where a person gives a fixed deposit of a specific amount to a bank, and a credit card with a similar amount or slightly lower than the fixed deposit is issued.
For instance, if you open a fixed deposit of $20000, this figure will be your card credit limit. In both scenarios, your financer will offer interest on the fixed deposit.
No credit check credit cards
Even though some credit cards can be approved easily even with a credit score lower than others, you cannot get bad credit credit cards guaranteed approval without going through a credit check.
All credit card issuing companies will do a credit check to know your borrowing history before they decide whether to approve or reject your credit card application. This is often referred to as inspecting the eligibility of your credit card.
You might need the guaranteed card with no credit check because of a bad credit report, or you don’t want to be declined for credit. In that case, here are some of the options for you.
Credit builder cards
These cards are also referred to as bad credit cards and are meant for individuals with bad credit reports or no report of credit at all.
They will assist you in improving a credit score that might have been affected by things such as late or skipped payment, bankruptcy, or court judgments.
This is with the condition that you are efficaciously paying off a manageable credit debt each other which is not recorded on your credit documents.
Even though these cards have easy approval, checking your credit file before applying is vital.
Credit check basics
Checking the status of your credit score is important as it allows you to see all the data credit providers will see in regards to your financial report when evaluating your application.
This means that you will have a chance to rectify any errors like basic mistakes on your bank info and address. You will also have a chance to see the things you can change to improve your credit score.
You can also get a soft credit check to have an idea of your credit score. Some credit card companies like Barclaycard provide a pre-application soft credit checking tool that conducts an eligibility check on your credit report.
Note that conducting a full credit check can affect your eligibility to get credit in the future. The soft credit check will not damage your credit score, but you will know whether or not you will be approved for the credit card before you proceed with the application.
What are the best credit cards for bad credit?
A wide variety of credit cards are designed for individuals with bad credit ratings to provide all kinds of benefits like cashback or free to free overseas spending.
Nevertheless, the best credit card for any person will depend on personal circumstances and preferences.
Once you know that you have a bad credit score, the first thing to consider is getting a card that will assist you in repairing your credit rating.
This type of card can be a helpful alternative to credit cards since they provide the convenience of a credit card but with no credit check.
For you to use a prepaid card, you need to pre-load some cash on the card. Since you cannot spend more than what you have on the card, prepaid cards can be a valuable tool to regulate your spending. This will assist you in limiting the possibility of being trapped in debt.
Best Guaranteed Approval Credit Cards for bad credit
Once you apply for a credit card or prepaid card, be ready to get feedback within one minute. Even though card issuers strive to approve whenever they can, more time is required in some situations to know if your application is accepted or declined, or more verification is required.
Are you salivating for a new credit card? In most cases, the approval takes a couple of minutes. On top of that, there is a card for almost every person; all you need to do is know what you need and what you can qualify for.
Here are some of the best cards that offer bad credit credit cards guaranteed approval
- Self-lender (credit-builder account)
If you want to repair your credit rating but lack the history to get a credit card, the self-lender is the best product for you. Just like the savings account, but with the capability of building your credit, you deposit a minimum of $25 every month to a certificate of deposit for at least 12 months. For instance, you can deposit $25 for 24 months and receive a cashback of @525 at the end of that tenure. You will also get an additional bonus of taking a string of on-time payments sent to the three major credit bureaus.
What are the benefits of this account? If you know that you have a bad credit rating that can prevent you from getting a credit card, or you have problems with your budgeting, this is the best account. There are no hard credit pulls or credit history required.
- Fingerhut Credit Account issued by WebBank
Fingerhut is an online shopping website that provides credit products for clients with bad credit scores. The reason that your payment routines are recorded in the three major credit bureaus, you will have a chance to improve your credit score with each on-time payment. Once you open a Fingerhut credit account issued by WebBank, you will have a chance to apply for two products. They include the Fresh Start Installment Loan and Advantage Revolving Credit Account. These two products will help you build your credit score. What are the benefits of the account? This is the best alternative for a client who needs to build credit and get a credit card or other loans.
- OpenSky Secured Visa Credit Card
There is no credit check required when applying for this card and this increases the probability that you will be approved. Your credit rating will be established after six months, and you will have a chance to improve your credit. Note that many merchants will always accept your card since it is a Visa.
What are the benefits of this card? You have a chance to decide the amount of your refundable deposit, starting at $200, and this will dictate your credit limit.
- Horizon Gold Card
Since this card does not check your credit or employment history, the Horizon Gold Card gives you a sign-up credit line of 0. This product is only used to make purchases at shop.thehorizonoutlet.com. Even though it advertises an annual percentage rate (APR)of 0%, there are numerous charges like account validation charges and an outlet store delivery signature verification fee. Therefore, ensure that you know what you need to do. What are the benefits of this account? While it comes with a minimum of the 25% monthly fee, which totals $300 yearly, this is an unsecured card that is useful if you don’t have the cash to secure a deposit.
- Green Dot primor Visa Gold Secured Credit Card
If you don’t have any problem dropping down your refundable deposit, this card gives you a chance of getting a credit limit of up to $5000. You don’t need a minimum credit rating, and even those with bad credit are invited to apply. What are the benefits of this card? The card offers very low fixed interest rates of 9.99% on purchases with zero penalty rates. It can help you strengthen your credit if you use it responsibly.
- UNITY Visa Secured Credit Card
The card approves poor to fair credit, and no minimum credit rating is required. However, a minimum amount deposit of $250 is needed and offers a 17.99 % fixed APR. What are the benefits of this card? The card offers a rare feature for the balance transfer interest rate of 9.95% APR. However, you will need to determine if it’s good to place a refundable deposit in the amount that is owed.
- USAA Secured Card Platinum Visa Card
The card is ideal for individuals who want to rebuild and establish their credit. You have a chance to determine your credit limit, which ranges from$250 to $5000, using an interest-earning CD. You will not be charged any foreign fees when you go out of the US. The card membership is accessible to active and ex-military and their eligible relatives.
- First Progress Platinum Select MasterCard® Secured Credit Card
You will get the card instantly through the new expedited progressing alternative. You don’t need a credit report or minimum credit rating to get approved. The secured card is ideal for car rentals, hotels, or anywhere a credit card is accepted. The card reports your on-time payments to three major credit bureaus to improve your credit report. You will get a credit line through a fully refundable deposit of $200-00 presented with the application. You need to deposit your balance and get your deposit back at any moment.
Ways to rebuild credit with a guaranteed credit card
With the credit card guaranteed approval, you will know whether you are approved as a cardholder within a few minutes. An initial credit check is done, and those with a good credit rating have a high chance of getting the card.
The majority of bad credit credit cards guaranteed approval credit cards have high-interest rates. However, this is normal since the cards are specifically meant for individuals with bad or slightly fair credit.
The good news is that you can avoid a high-interest rate. All you need to do is pay your full balance before the deadline indicated on your statement each month. This will help you avoid high-interest fees, and a small amount will be charged to your card.
Look at this illustration of failing to pay your balance in full
Imagine you obtain a new card with 15% APR. At the end of the opening month, you will have a balance of $300 and a minimum payment of $25.
When you deposit a minimum payment of $25, your balance will be $275 which will start accumulating interest at 155 until you make the next deposit.
When you fail to pay the balance in full, the amount you owe will increase since you will be paying interest on the balance, which includes the already accumulated interest.
As your balance continues to increase, particularly if you only pay the minimum due every month, you will be forced to pay more than what you deposited on the card.
Let the grace periods be your best friend.
Grace periods will prevent you from paying interest on a balance. The grace period given will vary by issuer, but it ranges between 21-25 days. If your deposit balance is complete each month during this period, you will not have to pay expenses.