Credit can be a blessing as well as a curse. On one hand, it can be a powerful financial tool, with the potential to improve your life, make emergencies easier, and more. On the other hand, however, if you've had some credit challenges in the past, the repercussions of having bad credit can linger for years, making your life more difficult and more expensive in the meantime. One of the most popular credit tools is the credit card, and some credit cards may even be able to get you a substantial credit limit of $1,000, even with bad credit.
There are guaranteed approval credit cards with $1,000 limits that consumers with bad credit can obtain, but they have a catch. In most cases, they will be secured credit cards, which means you'll need to put up the cash equivalent of the limit you want before you can get it.
In most cases any card with guaranteed approval will be ideal for those with bad credit, however, there is a significant difference between a guaranteed approval credit card, and a guaranteed approval secured credit card. Most cards will have some stipulations that go along with the guaranteed approval, and these stipulations can make all the difference if you have bad credit. Here is everything you need to know about guaranteed approval credit cards for bad credit, with limits of $1,000.
Guaranteed Approval Credit Cards
Guaranteed approval credit cards are not all that uncommon, and for those that have bad credit, they can be a lifesaver. Not only can they provide a powerful financial tool for those with bad credit to begin rebuilding their credit history with responsible use, but they can save the day in the event of an emergency where you need a substantial amount of immediate liquidity. Guaranteed approval cards generally come in two classes, secured and unsecured.
The standard type of credit card that most consumers are familiar with is an unsecured credit card. This type of card is applied for in the usual manner, and the creditor usually approves or denies the line of credit on the merits of the applicant's creditworthiness alone. An unsecured credit card with guaranteed approval is simply a conventional credit card that has approval guidelines that more or less encompass all consumers.
The drawback is that usually, while someone with bad credit can still get approved, they likely won't be approved for an initial credit limit of $1,000. While this may sound disappointing, these cards are relatively easy to manage responsibly, and by doing so you can request periodic credit limit increases, sometimes once per 6 months, which will often double your limit. This means if you get approved for a $250 limit initially, you can have a $1,000 limit after about 12-18 months of responsible use.
Secured credit cards work a little differently, and they require a bit more effort on the part of the applicant. Secured credit cards will generally have guaranteed approval, but with the stipulation that the applicant provides a security deposit in the full amount of their credit limit before the card is even issued. This means if you want a credit line of $1,000, that's no problem, provided you can pay $1,000 upfront to the card issuer.
While you may get the impression that this credit card would be funded with your initial $1,000 security, and function in a similar manner to a prepaid card, that's not quite how it works. Once you pay the deposit and receive your card, you'll have a credit card with a $1,000 limit, but anything you charge to the card will need to be paid off with your monthly statement just like any other credit card. The deposit is needed to secure your card in the event of a default. If you charge it to the full limit and never pay a dime, they have your security deposit, and the balance you owed will still go to collections, so it's important to be responsible when using it and ensure monthly payments are made on time.
Credit Cards With $1000 Limit Guaranteed Approval
These cards are all secured credit cards, and as such, they will be able to not only guarantee your approval, but you will be able to decide on your credit limit. Your credit limit will be based on the security deposit you can provide.
Citi Secured Mastercard
The Citi Secured Mastercard allows applicants to get a line of credit of up to $2,500 from one of the most popular and trusted card issuers in the world. They report to all 3 credit bureaus, so you can build good credit quickly.
Discover it Secured Credit Card
The Discover it Secured Credit Card earns cash rewards, and the Cashback Match Program multiplies the power of this card for the entire first year. It has no fees in most cases and a nearly guaranteed approval.
Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Credit Card is a great secured credit card with no annual fee and incredible features. Depending on your credit history, your deposit may be less than your credit limit, making this a powerful card.
Applied Bank Secured Visa Gold Preferred Credit Card
The Applied Bank Secured Visa Gold Preferred Credit Card features no credit check needed, no annual fee, and monthly credit reporting. You decide your limit, from $200 to $1,000 initially, with up to $5,000 after that.
Secured Sable ONE Credit Card
The Secured Sable ONE Credit Card offers a day-1 credit reporting, with no credit check needed, and the ability to become unsecured in just 4 months. No annual fee, and earns 1%-2% cashback on purchases.
Credit Cards For Bad Credit With $1000 Limit
These cards will have limits up to, and even beyond $1,000. Since they are guaranteed, or nearly–guaranteed, approval, you may not have that $1,000 limit available based on your credit. You may need to start with a smaller limit and work your way up.
The Surge Mastercard requires a checking account and offers approvals for all credit types. The initial limit of between $300 and $1,000 can be doubled when 6 months of on-time payments are made.
The Reflex Mastercard has an initial credit limit of $300-$1,000 and can double within 6 months of good standing. Free pre-qualification with no credit impact, though it requires a checking account.
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Aspire Cash Back Reward Card
The Aspire Cash Back Reward Card gives 1%-3% cashback on purchases, and up to a $1,000 limit based on credit. There are no deposits or annual fees needed, and it will begin reflecting on your credit in 60 days.
Repairing Your Credit Can Lead To Better Approval Odds
Sometimes using an unsecured card simply isn't viable, and the deposit needed for a secured card is often quite substantial. In cases like these that put the cards temporarily outside your reach, you may want to spend a little time polishing your credit history and paying down some debt. This can not only get you better odds of approval when you do apply for a card, but it can also lead to better interest rates and higher limits. Improving your credit will only better your position with lenders and creditors.
Paying Down Debt
One of the most popular ways to get more favorable terms with creditors is to pay off existing debt to improve your credit rating. While you continue to make all monthly payments on time, paying extra toward your outstanding debts can raise your credit score quickly. You can pay off from the smallest debt to the largest, sometimes known as the snowball method, or work from your most pressing, high-interest debt downward, known as the avalanche method. Either way, you'll free up more money that can be used to accelerate paying down your debt or can be used toward the deposit on a secured card.
Settling & Removing Negative Credit Report Items
If you don't have much debt to speak of, but you do have a significant amount of negative items on your credit report, you may want to look into what it would take to remove those items. Some collection agencies or owners of old accounts and debts will agree to what is known as a pay-for-delete, where you pay to settle the account and they agree to delete it from the credit report once finished. If you can negotiate this, be sure you get the agreement in writing before you begin payments.
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Bad Credit Doesn't Mean You Can't Have A Substantial Credit Limit
Life happens and sometimes our credit report takes the brunt of the damage, but that doesn't mean there aren't options for credit products for those with bad credit. Many different options can help, from secured and unsecured cards, to credit repair and slow but steady progress. Be sure you keep all of your options in mind when choosing your next credit-based financial tool.
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Shawn Manaher is a former financial advisor, has founded 5 online businesses, and is a coach, speaker, podcast host, and author. He's been featured on Forbes, The Consults Corner on TAE Radio, The Writing Biz, What's Your Story, and more.