The Bank of America® Customized Cash Rewards Secured Credit Card ($200+ limit) is the best credit card for people with bad credit because it offers a $1,000 credit limit.
Your credit limit will be determined by the $1,000 security deposit that you make when applying for the secured credit card.
When you have bad credit, getting a credit card with a high credit limit will be difficult if you don’t put down a deposit. Most credit cards for people with bad credit have a $200-$300 credit limit.
Ways To Get A $1,000 Credit Limit With Bad Credit Score
Yes, but you may have to put down a deposit to secure the card. With credit cards, you can choose from a wide range of options. Secured and unsecured are the two most common types.
1. Get A Secured Credit Card
It’s possible to get a “guaranteed approval” credit card that doesn’t require a credit check. Instead, each cardholder is required to deposit a refundable security deposit that in most cases equals the amount of their card limit.
A $1,000 security deposit is required when you open a credit card account with a $1,000 credit limit. Until you close your credit card account in good standing, your deposit is held by the bank. You will then be issued a check for the full deposit amount.
Remember that your deposit is not a form of payment and should be treated as such. For every charge that you make, you’ll have to pay for the deposit you’ve already made.
Your current balance will determine your monthly payment amount. In many cases, secured credit cards are preferable to their unprotected counterparts.
Think of a situation where you have a choice between a secured Visa card and a subprime unsecured Visa.
A $200 deposit is required for the secured card, but most other fees are waived. Contrast this with an unsecured $200 credit limit card that charges $79 per year and $99.
In comparison, the secured card will eventually return your $200 deposit after paying $178 in upfront fees.
Higher Credit Limits
Your initial deposit can often be increased to a higher credit limit, sometimes up to $10,000 on most secured credit cards.
The maximum credit limit on a subprime unsecured card may only reach $1,000 after a few years, making it impossible to reach these maximums.
You may find it more convenient to keep your current card rather than upgrade to an unsecured card, which requires a new deposit.
If you don’t want to spend money on credit card fees and interest, a secured card may be the best option for you.
An issuer can charge a lower APR and charge fewer fees because of the secured card’s low risk.
Select purchases can earn 3% or more in rewards with some secured credit cards. A Cashback Match is available to new cardholders for the first year after account opening on the Discover it® Secured Credit Card.
The Secured Sable ONE Credit Card offers cell phone protection, car rental insurance, and other premium benefits.
No Credit Check
Secured cards, on the other hand, require a security deposit instead of good credit. Most banks and credit card companies will accept applications for secured cards as long as a security deposit is submitted with them.
Because of the low credit score you already have, most companies don’t do a hard pull on your credit.
Most secured cards, such as the Bank of America Custom Cash Secured Card and the U.S. Bank Cash+® Visa® Secured Card, have no annual fees.
It’s also worth noting that the deposit is refundable if you close your account in order. Depending on your credit history, you may be eligible for an increase in your credit limit without having to make a new deposit.
2. Get An Unsecured Credit Card
A $1,000 credit limit on an unsecured credit card for people with bad credit is possible, but it all depends on how bad your credit is.
Your income, debts, and ability to pay your credit card bill all play a role in determining how much credit you have available.
For the most part, any bank or credit card issuer that provides unsecured credit cards for people with bad credit wants to start their new customers off small. It is common for these cards to have an initial credit limit of around $300.
The Surge Mastercard®, for example, offers a credit limit of $300 to $1,000 to qualified applicants. An annual fee, possible setup fees, and other fees are all common with these cards.
The interest rate on these cards is often higher than the industry average. That’s how the bank mitigates its risk of lending money to a customer with a poor credit rating.
Generally speaking, unsecured credit cards for people with poor credit are not the best deals.
The following are some of the drawbacks of using an unsecured credit card:
- Credit limits are too low.
- Rates of interest that are too high
- A torrent of charges
- Insignificant benefits
- costs of burying
3. Get a store card
After a few on-time and above-minimum payments, you may be eligible to increase your credit limit on some store credit cards, like the Fingerhut Credit Card.
Even if you have less-than-perfect credit, you can be approved for a Fingerhut Credit Card with no annual fee.
Becoming an authorized user is another way to obtain a $1,000 credit card limit despite having bad credit. When you authorize a credit card for someone else.
During this time, you will be sharing the account’s credit limit. Even if an authorized user misses a payment on the account, the primary cardholder’s credit rating will be affected.
Getting a secured credit card is a good idea if you want to improve your credit rather than use the money on hand for an emergency. Most secured cards have a maximum credit limit equal to the amount of money you put down as a deposit.
Alternatively, once you’ve been approved for a card, you can look into ways to raise your credit limit. A credit limit increase may be offered to you automatically or at your request after a period of responsible credit card use.