Can I Get Credit Cards With $1000 Limits with Bad Credit
Yes, you can. But you have to get approved first, isn’t it? There, there. Your bad credit is no deterrent. You can still get up to $1k with these cards. Guaranteed approval credit cards with $1000 limits for bad credit can be divided into two categories - secured and unsecured cards.
Secured cards
Your chances of approval for credit are higher with a secured credit card than it is with an unsecured credit card. This approval does not hinge on a credit check. But you may have to make a security deposit which is refundable on payment. In most cases, this security deposit is equal to the credit limit. So, if you need a credit limit of $1000, you’d need to make a security deposit of $1000 at the time of signing up.
Unsecured cards
With an unsecured card, you do not need to make any deposit. The card issuer does not have a security deposit to take if the cardholder doesn’t pay their credit card balance. The creditor’s only options are to use other collection methods like suing in court, requesting court permission to directly withdraw from the holder’s wages and using a third-party debt collector. It is best for people with a good credit score or fair credit history.
Secured Cards VS Unsecured Cards: Which One Should I Choose?
Ultimately, the decision is yours. But we can shed more light on what these cards are and how they work to guide you in making a decision.
Let’s begin with unsecured cards. An unsecured card is called so because it has no collateral. In other words, no security deposit is needed for approval. Since there’s no collateral to hold on to as security, banks and issuers prefer to start off small with the client. Most often than not, the credit limit is about $300.
Cards with higher credit limits offer credit with potential setup fees, an annual fee, very high interest rates, and a lot of other fees. Since the total cost of the cash advance tends to go very high, unsecured cards are not considered a good deal for persons with bad credit.
A secured card, in contrast, is everything someone with bad credit should be looking at. Here are some of the most notable reasons why a secured card is considered more desirable than its unsecured counterpart
- No credit check.
- Low interest rates and cost overall.
- Better perks like car insurance, cashback, zero APR for the first year of use, etc.
- Higher credit limits, sometimes as high as $5000 to $10000.
- Refundable deposit.
If a secured card sits well with you, consider some of the best secured credit cards listed below. Once your credit limit is raised, you may then transition to an unsecured card.
Where Can I Find the Highest Limit Credit Card for Bad Credit?
Having established that you can still get credit cards with $1000 limits, even with bad credit, the question of which cards are available remains. The following cards give their holders credit of between $1k and $5k.
MasterCard’s First Progress Platinum
This secured card gives credit of up to $2k. For cards in its class, it has a comparatively low interest rate. It also reports the payment to the three major credit bureaus, affording users an avenue to improve their credit score when they pay early. You don’t need a good credit history to apply for it either.
Pros
- Easy application process
- No credit check required
- Reports to major credit reporting bureaus for proper documentation of credit-building progress
- APR is comparatively lower than most in its class
The catch is that you cannot upgrade to an unsecured credit card when your credit improves; you have to cancel the card and apply for a new one.
Visa’s OpenSky credit card
If First Progress Platinum’s $2k seems like the best deal you’ve got, Visa’s OpenSky cc will make you rethink your stance. This cc gives its holders a credit ceiling of $3k. That’s a steal for someone with bad credit. No credit checks are involved and you can apply for a rise in credit line every six (6) months,
Pros
- No credit check is required
- Cardholders can dictate their credit limit. Your deposit is equal to your credit limit
- Like with traditional credit cards, it can help you build credit
Bank Americard Secured cc
This is easily one of the best credit cards for people with bad credit. One of its biggest perks is that its cardholders are charged zero interest for 18 billing cycles and any balance transfers made in the first 60 days. Also, users can access up to $4900 of credit. The minimum credit limit is $300 which is still a good deal if you have an urgent need for cash.
Pros
- Bonus offer for new cardholders
- No annual fee
- Introductory APR is 0%
If the Credit Card Option Fails, Get a Loan Instead
If you can’t get a reasonable sum from an unsecured card or make a security deposit like is required with a secured credit card, you may try applying for a loan. However, finding out which of the lot is best for you can be a chore. That’s why we have summarized in this list a few of the best loan options for you.
BadCreditLoans
BadCreditLoans connects borrowers with lenders who can provide them with up to $5000, so getting a $1000 loan shouldn’t be a hassle. Borrowers also do not need to pay any fees for using the service (origination fees). BadCreditLoans gets a commission from lenders that close loans with the borrowers instead. Their application process is quick and easy and they also provide debt relief and credit repair services.
CashAdvance
CashAdvance provides a free service that connects borrowers with lenders that can provide them with a $1000 loan. Unlike with a few other services, there’s no fixed monthly payment. Borrowers are instead required to pay back the borrowed sum plus interest at once. The payment term is usually between 14 and 30days. Failure to pay within this period of course, attracts late payment fees.
iPaydayLoans
iPaydayLoans is one good loan broker you may be willing to try. Do not bother about having a poor credit or no collateral. They don’t count much. iPaydayLoans partner lenders have some of the highest approval rates, so you can expect to get approved for a loan as long as you satisfy basic eligibility requirements.
The lenders they connect borrowers with do not have their eyes set on unreasonable profit margins. They charge reasonable and competitive interest rates. Here’s how to use the service:
- Fill out the application form supplying all information that may be needed in connecting you with a lender and submit.
- You will be connected with different lenders who will review your submission and run soft credit and affordability on your credit profile to determine how much loan you can be given.
- Each lender that approves you for a loan will present you a quote containing the approved loan amount, loan term, and conditions of the loan.
- Sign the quote that best suits your loan needs and submit.
- Then, get set to funded. This may take anything from a few hours to the following business day.
 | Why Us | |
|---|---|---|
| How much can I borrow? | $50-$35,000 | No hidden fees or charges |
| I have bad credit. Can I apply? | Yes | Bad credit is considered |
| Over how long can I spread the repayments? | 1-36 months | Fast decisions |
| Are credit checks involved? | Yes | Soft credit checks only |
| Chances of getting approvals | Good | 256-bit encryption protocol |
| How to apply? | Apply online | Easy application |
How Can I Raise My Credit Limit?
Check if you qualify for new credit
Check if you automatically qualify for a credit increase. Some card issuers raise the credit limit of their cardholders for their payment record and how well they’ve handled their credit so far. This credit limit may also automatically go up as the cardholder’s credit score and salary improves over time.
Make an official request for one
Why not request this increase? With some card issuers, you can request a credit limit increase if needed. You can do this online or by calling the number on the back of your card. You may need to update your income information to increase your chances of approval. Higher income indicates greater financial stability, hence, higher chances of approval.
Take good advantage of the new credit limit
Do not get too hyped by an increase in credit limit, that you begin to pile up bills once again. Make good use of the new credit limit by paying off the card balance periodically. For best results, aim for an overall credit score utilization of between 20 and 30 percent.
Conclusion
Are you in need of financial support between paychecks? Have you seen ads on guaranteed approval credit cards and wondered what they are or how genuine they are? The short and long of this is that they exist. However, you have to meet the basic requirements to be considered. Some need you to make a security deposit, some can barely get you half of $1000, while a few others need you to pay a monthly fee.
There’s nothing to worry about if this doesn’t work for you. Thanks to iPaydayLoans, you can still get a $1000 credit and even more. The approval rate of its partner lenders is high and they do not charge any fees for processing the loan.
Get Cash When You Need It Most
Get StartedFAQs:
What is the Average Credit Limit?
US credit cards are issued with credit limits, which is the maximum credit a cardholder can spend using the card. The average credit limit for new account holders is $5000. Surveys show that people between 18 and 22 have an average credit limit of $8000 while millennials between the ages of 23 and 38 years have access to a credit of $20400.
How Can a Credit Card For Bad Credit Help Me Build Credit?
First things first, bad credit is born out of bad spending history and racking up debts over time. Therefore, the key to improving your credit is paying bills on time and maintaining a low balance on your credit card for bad credit. Talking of late payments, did you know that a 30-day late payment can cause your credit score to dip by as much as 100 points?
What Does a $1,000 Credit Line Mean?
A $1000 credit line means the cardholder can make purchases up to $1000 using that card, nothing more. The card declines any attempt to make purchases above the $1000 mark. On the whole, $1000 is considered a fairly good credit line bearing in mind that many unsecured cards for poor credit have a credit ceiling of $200 to $300.
What Minimum Credit Score is Required For an Unsecured Card?
The minimum credit score required for an unsecured card is a FICO score of 550. A student credit card has no minimum though. In fact, you don’t need to have a credit score. People who can’t get a credit card for bad credit can get a prepaid reloadable card or apply for a card with a cosigner instead.