People with fair credit or low credit usually encounter difficulties in getting approved for another credit card. The major reason is that card issuers depend on credit score a lot before approving new credit cards. So, the first logical step when you have fair credit is to know your score.
Know your credit score. While there may be slight differences in how different banks score credit, lenders classify scores as follows:
- 300 – 629 is classified as bad credit
- 630 – 689 is classified as average credit
- 690 – 719 is classified as good credit
- Above 719 is classified as excellent credit
Once you have excellent credit all issuers will approve a credit card for you and you may also get approved for a credit card with good credit. However, this article is meant for people with average or bad credit. Before delving into how you can get quick approval even with your limited credit, it is important that you should also try to improve your credit score by avoiding new debt, by keeping your balance very low on an existing card (if any), and by making your payments timely.
The Best Credit Cards to Get for Fair Credit or Limited Credit
People with fair or bad credit are always looking for ways to improve their credit score. The problem arises when a person is denied the option of being approved for the better credit cards because their score is not that great. So the question arises, what are some cards that offer guaranteed approval for people who are in the process of rebuilding their credit? This list of credit cards for fair credit are all great options for people in the fair category. He is some details of credit cards available for those with fair credit.
The first on the list of credit cards for fair credit is the Discover It card. Discover is definitely a name that has been around the credit community for a while now and has proven to be a dependable brand among card companies. One of the reasons why Discover It is one of the top credit cards out right now is because the card has a 0% annual fee. In addition, a Discover It cardholder receives 1-2% cash back on purchases. And if that were not enough, within the first year of having the card, the cardholder gets their rewards doubled. This card does require a security deposit initially, that is refundable. The minimum payment is $200 for a deposit. The only negative about this card is the high APR rate, which is about 24.74%. Other than that, this card is a fine choice for people in the fair credit category.
Capital One Secured Mastercard
If someone is looking to start the process of rebuilding their credit, the Capital One Secured Mastercard might be the card for them. This card does have the option for partial deposits, which means that cardholders would be able to have spending limit higher than their original deposit. This fluctuates based on a person’s credit score. There are no annual fees for this card, which is always a good thing. Also, a person who pays their payments on time for the first five months can qualify for additional credit. Capital One Secured Mastercard is a great card if used responsibly, to rebuild one’s credit score. There are some disqualifiers, however. One is that people who have a non-discharged bankruptcy or an overdue Capital One limit will not qualify for this card. So this is not exactly on the list of cards that offer guaranteed approval.
OpenSky Secured Visa Credit Card
The OpenSky Visa is pretty much your everyday credit card. One of the great things about this card is that does not require a credit check for approval. So this card would be really good for people who have done a lot of damage to their credit score over the years. There is, however, a $35 annual fee and a $200 minimum deposit are required initially. Cardholders are looking at a 219.14% APR, which isn’t really bad at all. One thing to watch out for is the 3% fee for foreign transactions. Other than that, this card would be a good option for people who are looking for guaranteed approvals.
First Progress Platinum Select MasterCard Secured Credit Card
So just like the Opensky Visa credit card, the First Progress Platinum Select Mastercard is also an option for people looking for guaranteed approvals. This card does not require a credit history check or a minimum credit score to receive an approval. A minimum of $200, maximum off $2000, a deposit is required when you submit your application, and of course, the security deposit is refundable. If you want to receive your deposit back, you can pay off your deposit at any time. All in all, there is not anything really special about this card, it is a pretty average card by all standards.
Green Dot Primor Visa Gold Secured Credit Card
The Green Dot Primor Gold Visa card is another card that does not require a minimum credit score to get approved. Also, this card does not ask for any processing or application fees. The application process is fairly easy, and this card would also be a great choice for anyone who is looking to strengthen their credit score. One of the great things about this card is the really low fixed interest rate on purchases, which is about 9.99%, and that does not come with any penalty rate. On the other hand, cardholders would be looking at a $49 annual fee, and a 3% foreign transaction fee. The Green Dot Primor Gold also requires an initial deposit for a credit line, just like its counterparts, but this is for sure a card that should be taken into consideration.
First National Bank of Omaha Secured Visa Card
Last on the list of best cards for guaranteed approval, is the National Bank of Omaha Secured Visa card. The first thing that kind of sticks out about this card is that there are no one-time, annual, or monthly fees. There is, however, a 19.49% APR rate. One of the perks to having this Visa is that a cardholder can potentially have the opportunity to receive their deposit back in less than a year if they maintain a solid payment history throughout that time. Also, consistent usage of the card and making the payments due on time can also result in a credit increase without an additional deposit. The Bank of Omaha Secured Visa card is definitely one of the best-guaranteed approval cards out.
Make Sure You Have a Job
Some issuers approve cards for people with low credit so you can apply for a credit card in any of those issuers but they will only approve your application if you prove to them that you have a steady source of income. The higher your income, the higher your chances of getting a quick approval. So, if you intend to apply for a credit card with bad credit, you should have a job from whose earning you will be paying off your balances.
Try Online Pre-Qualification
Many credit card issuers usually offer online pre-qualifying assessments. You can do that at least to know your chances. However, you need to understand the fact that pre-qualifying for credit does not guarantee a credit card approval. It only means you have higher chances of getting approved. On the other hand, if you don’t pass the pre-qualifying assessment, it is not likely that you will get approved when you apply. You will be given the reason so you can work on it before you apply again.
Credit Cards for Bad Credit
If all the options above cannot work for you, then you have to contact card issuers for people with bad or limited credit. The reason this should be your last option is the high-interest rate. Apart from the high-interest rate they offer better facilities than regular card issuers. Although there are several of them, they offer varying interest rates and varying terms of service so you need to contact many of them to compare interest rates before you make your choice. However, apart from interest rates, there are other factors to consider.
- Payment of Annual Fees – Some companies charge annual fees while some do not. It is better to go for a card that does not require an annual fee. This is more important than interest rate because you can keep paying up your balance timely to reduce the interest on your card but there is nothing you can do on the annual fee.
- Fraud coverage – You should also confirm if there is fraud coverage in case your card is lost or stolen. Some issuers have the facility to block the use of your card once you notify them that it is lost or stolen while others do not offer such protection. So, you might want to get a card with reliable protection from fraud.
In the world of credit cards, many people are looking for ways to improve their credit score without having the burden to worry about being approved or not. These are just a few of the cards on the long list of cards available that offer guaranteed approval for anyone, no matter what their credit history looks like. For more details of credit cards available for those with fair credit, just do some research for yourself, and find what card would be the best fit for you.