With a bankruptcy or foreclosure, you can immediately see your financing opportunities for obtaining loans dying up. The recent financial scenario has led to several restrictions for people with bad credit line to obtain some instant loan or make the most out of their existing credit cards when required. This has also caused many would-be credit issuers to reduce the number of approval for aforesaid types of applicants. Not only unsecured loans have turned out to be very difficult to get approval but also traditional banks are now turning their consumers away from financing. Even new applicants, who have good FICO scores and want some credit to make a good credit profile, are facing refusals and being treated as risky candidates,.
Bad credit line can also cause the process of acquiring car loans and mortgages to be completely out of the question. The main problem for people falling into either of the above categories is that they legitimately need to establish or reestablish a good credit profile and increase their FICO scores. Doing so is, however, not easy without having gotten their credit card applications approved. This eventually badly influences their ability to accomplish the legitimate requisite of holding a good credit profile for their future financial transactions as well as requirements.
Unfortunately, credit card issuers are emerging as the main cause behind this issue though they are same individuals who would want their applicants to have made strong and solid credit histories. Most of these card issuers include even those who do not approve new applicants in the beginning in order to encourage them to prove that they are the right candidate of getting a credit card approved.
Guaranteed Approvals on Low Credit Line Credit Cards
The aforementioned vicious circle of credit cards has affected almost half of the households in the U.S alone. Fortunately, there are some financial companies who have recently started looking into the growing need of credit among consumers and offering instant low credit line credit cards. These credit cards will cater to the credit needs of those applicants who have poor credit or no credit history at all.
The providers of low credit line credit cards aim to issue new cards to their new and existing applicants without having a check on their credit histories including the past and present ones. Interestingly, some of the low credit line credit cards are issued in form of brand-logo credit cards of any major company, pre-paid debit cards, and secured credit cards. Also, there are online catalog shopping cards that let the card holder to buy household and other products from online credit grantors stores.
You may wonder about the legitimacy of guaranteed low credit line credit cards or want to understand what exactly their guaranteed approval means. All credit cards have some sort of basic requirements that you need to fulfill before a company provide you with one. The best part of these so-called guaranteed approval low credit line credit cards is that the requirements to qualify for a card approval are really minimal.
Most companies offering these types of credit cards need you to hold an active checking account and provide them with a proof of income that should exceed a certain minimum amount. Some of these might also see how poor your credit history is. In general, a credit score standing between 300 and 650 i.e. the lowest FICO score is considered as poor credit score. Nonetheless, many credit card issuers consider scores standing between 550 and 650 as bad credit and may provide you with an unsecured credit card.
Best Low Credit Line Credit Cards to Consider
- Secured Master Card by Capital One® – This credit card is suitable for those consumers whose credit is damaged but not essentially destroyed. The Secured Master Card by Capital One® allows you to rebuild your credit for once again.
- Secured Visa® Credit Card by OpenSky® – If you are struggling to establish or reestablish your credit or do not have access to any traditional banking services available, this secured credit card is the best option to avail.
- Secured by Discover it® – This is the best option for those with bad credit history who want to avail benefits of a secured credit card and get other useful features and rewards too. Discover it® Secured credit card comes with many features that are far better for bad credit than those available on unsecured credit cards for good credit.
- Fingerhut Credit Account – Specially designed for those with bad credit line, this credit card enables you to build credit by making a responsible use of it. All you need to have a Fingerhut credit account is to have a valid checking account and a proof of income.
- Gold Secured Credit Card by Green Dot Primor – It not only allows you to pay your credit card in full every month but also lets you establish your credit history at the ease because of the low interest rate involved.
People with bad credit history often face many hindrances to acquire their financial needs, such as credit cards. Luckily, there are several programs that do not punish you for having any financial hardships in your credit history. So, it’s really okay to have bad credit line since these programs take on high-risk people, offering a credit line and securing their capital in other means. With a range of low credit line credit cards offered by reputable companies, you now can ignore your FICO score and get approval for your new credit card. Most guaranteed programs offering low credit line credit cards involve higher interest rates in order to secure their investment. While this could be the only drawback of using such credit cards, the easy approvals they offer make it worthwhile to obtain one. Ultimately, the secret is getting the best value in term of lowest annual fees, penalty terms, and lower cost APR rates as well as maximizing your leverage of borrowing and purchasing as a consumer.