Getting approved for a credit card with a negative credit history is not an easy task. Unsecured credit cards are typically reserved for prime and super-prime rated borrowers. People who apply with good and above average credit scores are not required to put up large deposits for unsecured cards because they have proven they will not default on their loan obligations.
Applicants with damaged credit histories are typically denied for unsecured credit cards because they are high-risk borrowers. If you have been on your best financial behavior and have started to clean up your credit report, here is a credit card with guaranteed approval odds assuming you do not have any charged off credit card accounts in the last 5 years.
Credit One Bank Platinum Visa
Credit One Bank offers a platinum unsecured credit card with a minimum credit line of $300 to borrowers with poor to fair credit. All related account activity is reported to the three national credit agencies. Users earn one percent cash back rewards on authorized purchases to include cell phone service and groceries, and your credit line will increase based upon your repayment history. The annual fee fluctuates between $0 – $99 and is subtracted from your available credit limit as soon as the account is opened. For instance, if your annual fee is $99 and your approved line of credit is $600, your available credit is $501. A variable APR of 16.99 percent to 24.99% is charged to all purchases, and the APR for cash advances is 18.90% to 25.90%. Interest rates are decided by your credit score when your application is approved. Account holders can stay up to date with account information by receiving email and text alerts. You can also change your payment due date after your first billing period to six days before or after your original balance due date.
Freedom Gold Card
The Freedom Gold card outlines many attractive features for credit card applicants. This card issuer boasts guaranteed approval for a $500 unsecured credit limit to applicants with damaged to fair credit scores. Freedom Gold does not require a credit or employment check. Similar to other unsecured credit card lenders, Freedom Gold reports to the three major credit bureaus. There is a zero percent APR on all purchases and no prepayment penalties. There is no grace period on balances due, but your minimum monthly payment is only 10% of the monthly balance. If the monthly balance is less than $25.00, the entire amount is owed on the account’s due date. A processing fee is charged to all purchases. As a courtesy, Freedom Gold will auto-debit the $24.95 monthly membership benefits fee.
Net First Platinum
With a minimum credit limit of $500 and zero percent APR, the Net First credit card is a great option for borrowers who apply with damaged to fair credit histories. Net First does not conduct an employment or credit check. Cardmembers also receive perks such as no penalties for prepayment and automatic enrollment in the membership rewards plan. Members enjoy access to privacy protection, roadside assistance, legal assistance, and discounted prescriptions. This card has a revolving line of credit. So, as soon as you pay off what you owe, your credit line will return to your approved limit. While there is no APR on purchases, each item is charged a processing fee. Other expenses include a $20.00 late payment fee, a $25.00 NSF check fee, and a $5.00 account validation fee. The $6.00 monthly card maintenance fee is waived if members opt to pay the $24.95 for the monthly membership plan.
Quick Look at Other Credit Cards for Applicants with Bad Credit
Milestone Gold MasterCard- offers a minimum credit line of $300. This card will work with applicants who have low credit scores and past bankruptcies. The terms and conditions include low annual fees for the first -year account is open and a 23.90% APR on all purchases. The account activation fee is only $5. Approved applicants can create their own custom card designs.
Total Visa- presents a credit card that has a starting credit limit of $300. There is a 29.99% APR on purchases and cash advances, but the card issuer has a regular promotion that reduces the annual card maintenance fee from $75 to $48 after the first year. Additionally, new account holders are not charged a monthly service fee for the first year. Cardmembers are given 21 days after the end of each billing cycle to make their minimum payments.
How to Compare Guaranteed Approval Credit Card Offers
When comparing offers from unsecured credit card companies, you want to apply to companies with the best deals. Settling for the first card issuer that approves you can cause you to pay outrageous interest rates and annual fees.
- Begin with comparing APR rates. Concentrate on the credit card companies that promote no interest rate introductory periods and advertise low annual fees.
- Compare benefits, bonuses, and rewards programs. General rewards programs include cash back incentives at restaurants and grocery stores, discounts on airline miles and hotel stays, and points earned for every dollar spent.
- Review each company’s guaranteed approval rate and minimum credit limit. Your actual line of credit may be less than advertised since your credit limit depends upon the information you put on the credit application.
- Evaluate grace period stipulations and when the card issuer reports to the three national credit bureaus. Some unsecured card lenders provide 21 days from the time you receive your bill to pay off the balance while other lenders provide a grace period of 25 days.