A handful of cards offer guaranteed approval credit card limits for people with bad credit, typically secured with a security deposit and reported monthly to major credit bureaus. The Interesting Info about Briansclub.
These cards are ideal for people who have seen their credit scores decline and want to add one without risking another hard inquiry on their score.
1. Bank of America Secured Mastercard
Bank of America Secured Mastercard is ideal for anyone with poor credit who wants to rebuild or establish their history. A minimum deposit of $300 – the same as your credit limit – is necessary to open one. Furthermore, this card reports your payments on time with all three major credit bureaus, which could help increase your score by paying your balance off and on schedule.
Credit limits vary; you can request an increase if your income or creditworthiness increases, and the company also periodically reviews accounts to see if you qualify for a return of security deposits and upgrades to an unsecured card.
Although the Bank of America Secured Card can help those looking to build or rebuild their credit, other cards offer better rewards and lower fees – for instance, Citi’s Secured Credit Card provides up to $5,000 credit limit while Chase Freedom Unlimited boasts several thousand dollars more than Bank of America Secured Cards.
Capital One Secured Card offers another excellent alternative, featuring a limit equal to your security deposit with no annual fee and reporting to all three credit bureaus, helping individuals build up credit over time as long as payments are made on time and utilization is kept low. While it does require a security deposit requirement, approval for it should be straightforward if eligible requirements are met.
2. MBNA Secured Mastercard
The MBNA credit card lineup may not be as enticing or extensive as other companies offer, but they still boast an impressive collection. They also offer rewards ranging from cashback and loyalty points to car rental discounts – and while not typically considered balance transfer providers, MBNA True Line Mastercard allows customers to benefit from 12 months of no-interest purchases/transfers (with a fee).
This low-interest credit card features a straightforward rewards structure with an invaluable welcome bonus. Earn 4 MBNA Rewards points per dollar spent for eligible purchases during your first 90 days; after this, points are worth 1 cent each and add up quickly! Plus, there is no annual fee.
With purchase interest rates rising rapidly, finding a credit card that can help you clear off debt quickly is critical to minimizing interest payments. TD Canada’s MBNA True Line Mastercard is ideal for those searching for zero-fee balance transfer cards.
TD Canada is one of the country’s premier credit card issuers and, in 2011, acquired MBNA Canada’s MasterCard portfolio, meaning many of MBNA’s top cards can now be found under their banner – such as the MBNA Rewards World Elite Mastercard that features accelerated rewards accrual on popular spending categories and an attractive combination of perks; additionally, this card comes without an annual fee and features standard coverage such as extended warranty and purchase protection; unlike some of their other offerings however, it does not come with a balance transfer bonus either.
3. Wells Fargo Secured Mastercard
Wells Fargo’s Business Secured Credit Card can be an ideal solution for small businesses with poor or no credit. Reporting to all three consumer credit bureaus allows business owners to build or rebuild their company’s credit. But remember that secured cards require cardholders to make a security deposit to receive credit lines; this can present difficulties for some entrepreneurs with insufficient cash reserves for the minimum deposit requirement.
Wells Fargo’s business card features can assist business owners in managing expenses and spending responsibly. For instance, Design Studio allows owners to customize their cards with images representing their brand or storefront for easier budgeting and expense tracking. In addition, Mastercard protections such as Zero Liability Protection, Easy Savings Rebate Access, and ID Theft Protection come standard on these cards.
One key advantage of Wells Fargo business cards is their regular reporting to your credit score as an owner, helping your company establish valuable business credit that could one day qualify for loans or financing from lenders. Unfortunately, Wells Fargo’s graduation schedule makes it hard to know when you may be eligible to upgrade your card.
Though this card offers excellent options for small businesses with no or limited credit, its credit limit may not provide long-term solutions for more severe credit issues.
4. Capital One Secured Mastercard
Capital One Platinum Secured Credit Card offers reliable credit-building tools to people with poor or no credit profiles. While its perks may be limited, you can still use it to build responsible financial habits that could qualify you for more powerful unsecured cards.
This card from a major issuer guarantees approval to those with poor credit, even those who have been declined elsewhere or filed for bankruptcy. With just a refundable security deposit payment, you could still get approval!
When applying, you can select from three minimum deposit amounts: $49, $99, or $200, depending on your score. Paying more than required will increase the initial credit limit even further.
After making several on-time payments, your card issuer may allow you to “graduate,” meaning it will return your security deposit and transform your secured credit card into an unsecured one – potentially saving money initially needed to come up with the deposit amount. This can be an enormously helpful feature!
Capital One also provides free monthly credit scores and the flexibility of checking them as often as you’d like online. This feature can benefit people with lower scores, as many card issuers will only provide reports upon request. You can set an email or text alert if payments are late or missed, providing another layer of protection against account defaulting. However, preapproval will trigger a hard inquiry on your profile, potentially lowering it temporarily.
5. American Express Secured Mastercard
American Express typically requires good to excellent credit scores to be approved for its credit cards. However, they also offer options for consumers with poor or no credit. Depending on your credit score, You could get approved for a secured card or one with a lower-than-average interest rate.
One option available to those with poor credit is the American Express Secured Mastercard, offering an initial $500 deposit that earns interest over time. While it does charge annual and other fees, using it responsibly could help rebuild your credit.
American Express Secured Mastercard differs from many unsecured credit cards in that it does not rely on your past credit history to determine eligibility, instead using identity documents to evaluate them. Therefore, this card is exclusive to military personnel, their immediate family members, and members of USAA to be approved for it.
Apart from the USAA card, American Express also offers credit cards with $1,000 limits through various financial institutions on their network – such as banks or credit unions that issue them directly from them.
Before applying for a credit card, always consider how much money you can afford to spend and be sure that any balances are cleared monthly – otherwise, you will incur interest charges that further damage your score. Check out NerdWallet’s CardMatch tool for personalized offers, then sign up for a free membership for additional insight on your credit and recommendations for the ideal card!