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Are you trying to get a Guaranteed approval credit card with bad credit? The guaranteed credit card is legitimate? So, what do you mean by guaranteed credit card? All credit cards come with some basic requirements, which you need to fulfill if you want to get the card; however, the requirement is very minimal in the case of guaranteed credit cards. If you have a low credit score or no credit score, seeking a Credit Card can be a draining experience for you. To get approved for a credit card, you must have a good to excellent credit score of 670 and above.
If you apply for a credit card with not so good credit score and get rejected, then your credit score might be lowered due to rejection. Lowered Credit Score reduces your Creditworthiness.
In low or no credit, you are typically offered two types of credit cards that help you build or rebuild your credit. These include the following:
- Secured Card (which requires you to deposit a certain amount of money for the security deposit, which usually equates to the credit line you seek.
- Unsecured Card (which does not require you to deposit a certain amount of money for security deposit).
Suppose the idea of depositing money for a security deposit is a turn down for you. In that case, you should know that the unsecured cards usually come with some added fees and relatively higher APR than the secured cards. On the other hand, Secured Cards require you to deposit a certain amount of money for Security Deposits (usually $200). In most cases, this security deposit is redeemable. Moreover, you are rarely charged any fee.
Moreover, while choosing a secured credit card, you should also seek a card issuer who reports credit profile progress to all the three major credit bureaus in the US (Equifax, Experian, TransUnion).
Whichever card you choose, you should aim at using the new credit line as a building block for an improved credit profile. Hence, you can qualify for cards that offer you better rewards and deals.
What’s Ahead
- What makes a Credit Rebuilding Card good?
- Citi Secured MasterCard.
- Capital One Secured MasterCard
- OpenSky Secured Visa Credit Card
- Petal 1 No Annual Fee Visa Card
- Discover it, Secured Card
- Which Credit Building Card Should is best for me?
What makes a Credit Rebuilding Card good?
In our analysis of numerous credit rebuilding cards, we take several things into account. These include the following:
(i) Ease of Approval for these cards.
(ii) Cost of Maintenance.
(iii) Potential of earning rewards.
# 1. Ease of Approval
All the credit as mentioned above Rebuilding Cards aims at helping you build or rebuild your credit score. These cards are pretty much feasible for all sorts of people, including students, small-scale businesses, low-income employees, etc. So, whether you have a bad credit score or do not have a credit history, these cards will help you become more creditworthy. Hence, the odds of approval for all these cards are pretty high.
# 2. Cost of Maintenance.
The maintenance cost can be a major make-it or break-it decision since it adds or reduces the number of fees applicable on certain cards, which can indeed save you a hundred bucks. There are several rates and fees applicable on these cards, but we will take them into account in this analysis. These include Joining fees, Annual Fees, Foreign Transaction Fees, Balance Transfer Fees. Secured Cards are generally low-cost cards.
Among the cards mentioned earlier, Discover It Secured Card, Citi Secured MasterCard, OpenSky Secured Card are low-maintenance cost cards. But there are special cards like Capital One Secured MasterCard and Petal 1 “No Annual Fee” Visa Card is technically the no maintenance card that does not charge you any Balance Transfer Fee, Foreign Transaction Fee, and Annual Fee.
# 3. Potential of Earning Rewards
The potential of Earning Rewards is another critical thing that can encourage or discourage you from applying for a certain card. The most prominent and useful form of reward is Cashback Rewards. There are a few credit rebuilding cards that offer you any Cashback Reward.
These special cards include Discover It (which offers you a Cashback Reward of 2% on all purchases with a quarterly spending cap of $1,000, then the unlimited cash back reward of 1% is applicable), Petal 1 No Annual Fee Card (which offers you a Cashback Reward of 2-10% on eligible purchases made at certain merchants).
Here the list of best Guaranteed approval credit cards.
# 1. Citi Secured MasterCard.
Rates & Fees
| Types | Rates ($) |
|---|---|
| Joining Fees | N/A |
| Annual Fees | N/A |
| Balance Transfer Fees | $5 or 3% of the Balance Transfer Amount (whichever is higher is applicable). |
| Foreign Transaction Fees | 3% |
| Introductory APR | N/A |
| Regular APR | A regular APR of 22.49% is applicable on all purchases and Balance Transfers made by you. |
Pros & Cons of Citi Secured MasterCard
| Pros👍 | Cons👎 |
|---|---|
| Credit Limits can be higher than the amount of your security deposit. | Lack of Introductory APR |
| Ease of building or rebuilding your credit score. | No Cashback Rewards |
| Reports to the major 3 credit bureaus in the US. | Relatively Lower Maintenance Cost Cards Available in the same segment. |
| MasterCard Perks |
Citi Secured MasterCard is a good credit-building card that has a low maintenance cost. It does not charge you any Joining Fee, Annual Fee. But it charges you a Balance Transfer Fee of $5 or 3% of the Balance Transfer Amount (whichever is higher is applicable). It charges you a Regular APR of 22.49%, which is decent enough.
Whether you have a terrible credit score, an average credit score, or no credit score, you can still get a shot at acquiring a Citi Secured MasterCard. A Secured Card requires you to deposit a Security Deposit of $200 and has a Credit Limit of $200-$2,500. It is truly a credit-building card that reports to all 3 major credit bureaus in the US. Plus, you can get access to your bank account statements, Current Credit Score, which makes credit-building easy.
You get numerous perks that make banking fun. These include Automatic Account Alerts, Choose Your Payment Date, Citi Digital Wallet, Contactless Payment by tap. As a MasterCard, Citi offers you No Fraud Liability, Identity Theft Solutions, Global Acceptance, etc.
Certain limitations of Citi Secured Credit Card include lack of introductory APR, Lack of Cashback Rewards, Availability of Lower Maintenance-Cost Cards.
# 2. Capital One Secured MasterCard
Highlights
- No Credit Score is needed for your approval of this card.
- No Cashback Rewards.
- No Hidden Fees are Applicable.
- No Annual Fees is Chargeable.
- Using the Secured MasterCard from Capital One can be helpful for you if you are building or rebuilding your credit history.
- You can put down a security deposit of $49 to avail an initial credit line of $200.
- You can even earn your security deposit in the form of a statement credit when you are using your card responsibly and making payments timely.
- No Balance Transfer Fee is Applicable.
- No Foreign Transaction Fee is Applicable.
- No Introductory APR is offered to the new cardholders.
- The Regular APR of 26.99% is applicable on purchases and balance transfers made by you.
Rates & Fees
| Types | Rates ($) |
|---|---|
| Joining Fees | N/A |
| Annual Fees | N/A |
| Balance Transfer Fees | N/A |
| Foreign Transaction Fees | N/A |
| Introductory APR | N/A |
| Regular APR | A regular APR of 26.99% is applicable on all purchases and Balance Transfers made by you. |
Pros & Cons of Capital One Secured MasterCard Card
| Pros👍 | Cons👎 |
|---|---|
| Credit Limits can be higher than the amount of your security deposit. | Lack of Introductory APR |
| Ease of building or rebuilding your credit score. | No Cashback Rewards |
| Low Maintenance Cost | |
| MasterCard Perks | |
| Relatively Lower Deposit Requirement |
Capital One Secured MasterCard is a decent credit building card that has a really low maintenance cost. It does not charge you any Joining Fee, Annual Fee. Similarly, it does not charge you any Balance Transfer Fee and Foreign Transaction Fee. It charges you a higher Regular APR of 26.99%, which is relatively higher when compared to the Regular APR of other cards in the same segment.
Your Credit Score does not impact your Odds of Approval. Whether you have a terrible credit score, an average credit score, or no credit score, you can still get approved for Capital One Secured MasterCard, so this credit cards can be included in Guaranteed approval credit card . A Secured Card requires you to deposit a Security Deposit of $200 and has a Credit Limit of $200-$1,000. It reports to all 3 major credit bureaus in the US. Plus, you can get access to your bank account statements, Current Credit Score, which makes credit-building easy.
You get numerous perks that make banking fun. These include Automatic Account Alerts, Choose Your Payment Date, Capital One Digital Wallet, Contactless Payment by tap. As a MasterCard, Capital One offers you No Fraud Liability, Travel Accident Insurance, Secondary Automobile Insurance, etc.
Certain limitations of this card include No Cashback Rewards, No Introductory APR. Lack of Cashback Rewards restricts your potential for profit maximization. Having an introductory APR offers you a period of relief from hefty interest rates charged while making purchases. Due to the lack of introductory APR, you have to pay off hefty interest rates on purchases right from the beginning.
# 3. OpenSky Secured Visa Credit Card
Highlights
- No Credit Check is required to apply for it. OpenSky offers everyone an equal opportunity to apply for this card.
- The refundable secured deposit deposited by you becomes your credit limit on your Visa Card. You can choose it yourself. It can be as low as $200.
- You can quickly build credit. OpenSky reports to all 3 major credit bureaus in the US (Equifax, Experian and TransUnion).
- Credit Line ranges from $200-$3,000.
- 99% of the recorded customers who started from scratch without a credit history earned a credit score with the credit mentioned above bureaus within the first 6 months of responsible usage of their card.
- OpenSky has a Facebook Community open for all, where you can learn about the experiences and insights of other cardholders.
- An Annual Fee of $35 is Applicable.
- 3% Foreign Transaction Fee is Applicable on each Foreign Transaction made in US Dollars.
- No Balance Transfer Fee is Applicable.
- No Introductory APR is offered to new cardholders.
- The Regular APR of 17.39% is applicable on all purchases made by you.
- Inactive Account Fee of $10 can be charged from you if you do not use your card for a whole year.
- Late Payment Fee of $27 to be charged on your first late payment. For any added late payment within the next six months, you will be charged $38.
- Additional Visa Perks.
Rates & Fees
| Types | Rates ($) |
|---|---|
| Joining Fees | N/A |
| Annual Fees | $35 |
| Balance Transfer Fees | N/A |
| Foreign Transaction Fees | 3% |
| Introductory APR | N/A |
| Regular APR | A regular APR of 17.39% is applicable on all purchases and Balance Transfers made by you. |
Pros & Cons of OpenSky Secured Visa Credit Card
| Pros👍 | Cons👎 |
|---|---|
| Reports to all 3 major credit bureaus in the US. | Lack of Introductory APR |
| Ease of building or rebuilding your credit score. | No Cashback Rewards |
| Relatively Lower Regular APR. | |
| You can set your own credit limit. | |
| Visa Perks Applicable. |
OpenSky Secured Visa Credit Card is a decent credit building card that requires a low maintenance cost. It does not charge you any Joining Fee and Balance Transfer Fee. But, it does charge you an Annual Fee of $35 and a 3% Foreign Transaction Fee. It charges you a Regular APR of 17.39%, which is relatively lower when compared to the Regular APR of other cards in the same segment.
Your Credit Score does not impact your Odds of Acceptance for this card. Whether you have a terrible credit score, an average credit score, or no credit score, you can still get approved for OpenSky Secured Visa Credit Card. A Secured Card requires you to deposit a Security Deposit of $200 and has a Credit Limit of $200-$3,000. So, its also a Guaranteed approval credit card. It reports to all 3 major credit bureaus in the US. Plus, you can get access to your bank account statements, Current Credit Score, which makes credit-building easy.
You get numerous perks that make banking fun. These include Automatic Account Alerts, Choose Your Payment Date, Capital One Digital Wallet, Contactless Payment by tap. As a Visa Card, OpenSky Secured Visa Credit Card offers you $0 Fraud Liability, Travel Accident Insurance, Secondary Automobile Insurance, etc.
Certain limitations of this card include No Cashback Rewards, No Introductory APR. Lack of Cashback Rewards restricts your potential for profit maximization. Having an introductory APR offers you a period of relief from hefty interest rates charged while making purchases. Due to the lack of introductory APR, you have to pay off hefty interest rates on purchases right from the beginning.
# 4. Petal 1 “No Annual Fee” Visa Card
Highlights
- No Sign-up Bonus is offered
- Petal 1 No Annual Fee Visa Card offers you a Cashback Reward of 2-10% on purchases made from Select Purchases.
- No Annual Fee is charged.
- Extensive Credit Limit of $500-$5,000.
- Your credit limit can be increased within the next 6 months if you responsibly use the card.
- Pretty much everyone can apply for this card. Since there is no credit history required. Even with bad credit or no credit, you can still apply for this card.
- Petal 1 takes into account your payment information from previous bank transactions to approve you for this card.
- Reports to all 3 major credit bureaus in the US.
- You should also know that you might not be eligible for this card if you have filed for bankruptcy within the period of last 4 years (48 Months), even with a better financial situation.
- Cashback Reward of 2%-!0% at selected merchants.
- No Foreign Transaction Fee is Applicable on Foreign Purchases.
- No Balance Transfer Fee is Applicable on Balance Transfers.
- No introductory APR is applicable.
- The Regular APR is Variable in Nature ( ranges from 19.99%-29.49%)
- As a Visa Card, it offers you a number of perks including Auto Rental Collision Insurance, Roadside Dispatch, Lost or Stolen Card Assistance.
Rates & Fees
| Types | Rates ($) |
| Joining Fees | N/A |
| Annual Fees | N/A |
| Balance Transfer Fees | N/A |
| Foreign Transaction Fees | N/A |
| Introductory APR | N/A |
| Regular APR | A regular APR of (ranging from 19.99%-29.49%) is applicable on all purchases and Balance Transfers made by you. |
Pros & Cons of Petal 1 “No Annual Fee” Visa Card
| Pros👍 | Cons👎 |
|---|---|
| Reports to all 3 major credit bureaus in the US. | Lack of Introductory APR. |
| Ease of building or rebuilding your credit score. | Cashback Offers applicable on Select Merchants. |
| Cashback Reward of 2%-10% on your purchases at select merchants. | |
| Low Maintenance Cost. | |
| Visa Perks Applicable. |
Petal 1 “No Annual Fee” Visa Card is a great credit-building card with a really low maintenance cost. It does not charge you any Joining Fee, Annual Fee. Similarly, it does not charge you a Balance Transfer Fee and Foreign Transaction Fee. It charges you a Regular APR (ranging from 19.49%-29.49%), which is decent enough.
Whether you have a terrible credit score, an average credit score, or no credit score, you can still qualify for a Petal 1 No Annual Fee Visa Card. A Secured Card requires you to deposit a Security Deposit of $500 and has a Credit Limit of $500-$5,000. It is a true credit-building card that reports to all 3 major credit bureaus in the US. Plus, you can get access to your bank account statements, Current Credit Score, which makes credit-building easy.
What makes this card stand out in this segment is the Cashback Rewards. Petal 1 “No Annual Fee” Visa Card offers you a lucrative range of Cashback Rewards ranging from 2%-10% on making purchases at Select Merchants. So, if you make purchases at Select Merchants, then it’s your best bet.
Moreover, you also get numerous perks that make banking fun. These include Automatic Account Alerts, Choose Your Payment Date, Petal Digital Wallet.
As a Visa Card, Citi offers you No Fraud Liability, Identity Theft Solutions, Global Acceptance, etc.
There are certain limitations of Citi Secured Credit Card. These include lack of introductory APR, Lack of Cashback Rewards, Availability of Lower Maintenance-Cost Cards. Cashback Rewards are restricted to purchases made at Select Merchants. . Having an intro APR offers you relief from hefty interest rates charged on purchases made by you. Due to the lack of intro APR, you have to pay off hefty interest rates in the form of Regular APR on all purchases you make.
# 6. Discover It, Secured Card
Highlights
- Sign-up bonus is available to all the new cardholders in the form of Cashback Rewards. Using Discover It Secured Card to make purchases offers you a Cashback Reward of 2%, with a spending cap of $1,000. Thereafter, an unlimited Cashback of 1% is applicable.
- No Credit Check is required to apply. Discover offers everyone an equal opportunity to apply for this card.
- The refundable secured deposit deposited by you becomes your credit limit on your Discover It Secured Card. You can choose it yourself. It can be as low as $200.
- You can easily build your credit. Discover reports to all 3 major credit bureaus in the US (Equifax, Experian and TransUnion).
- Credit Line of Discover It Secured ranges from $200-$2,500.
- 99% of the recorded customers to start from scratch without a credit history can earn a credit score with the above-mentioned credit bureaus within the first 6 months of responsible usage of their card.
- Discover offers you top-notch Customer Care Services. It is ranked second amongst 11 major credit card issuers in the US.
- No Annual Fee is applicable.
- No Foreign Transaction Fee is Applicable on each Foreign Transaction made in US Dollars.
- 3% Balance Transfer Fee is Applicable for the first year. Then onwards, a Balance Transfer Fee of 5% is applicable on each Balance Transfer made by you.
- An introductory APR of 10.99% is applicable on all purchases made by you within the first 6 Months of Account Opening. Then onwards, the Regular APR of 22.99% is applicable on all purchases made by you.
Rates & Fees
| Types | Rates ($) |
|---|---|
| Joining Fees | N/A |
| Annual Fees | N/A |
| Balance Transfer Fees | 3% Balance Transfer Fee is applicable in the first year of Account Opening. Then onwards, a Balance Transfer Fee of 5% is applicable on each Balance Transfer. |
| Foreign Transaction Fees | N/A |
| Introductory APR | Discover It Secured offers an introductory APR of 10.99% on all purchases made by you. |
| Regular APR | A regular APR of 22.99% is applicable on all purchases and Balance Transfers made by you. |
| Pros👍 | Cons👎 |
|---|---|
| Reports to all 3 major credit bureaus in the US (Experian, Equifax and TransUnion). | Lower Maximum Credit Limit |
| Ease of building or rebuilding your credit score. | Lack of Visa and MasterCard Perks. |
| Cashback Reward of 2% on all purchases made by you (with a quarterly spending cap of $1,000). Then onwards, you can earn an unlimited Cashback Reward of 1%. | |
| Low Maintenance Cost. | |
| Top-Notch Customer Care Services. |
Whether you have a terrible credit score, an average credit score, or no credit score, you can still qualify for a Discover It Security Card. A Secured Card requires you to deposit a Security Deposit of $500 and has a Credit Limit of $500-$2,500. It is truly a credit-building card that reports to all 3 major credit bureaus in the US. Plus, you can get access to your bank account statements, Current Credit Score, which makes credit-building easy.
Discover It Secured Card stands out in this segment due to the Cashback Rewards. Discover It Secured Card offers you a decent Cashback Reward of 2% on all your everyday purchases (with a spending cap of $1,000), then onwards you can still earn a limitless Cashback Reward of 1% on all your purchases.
Moreover, you also get numerous perks that make banking fun. These include Automatic Account Notification Alerts, Choose Your Payment Date, Discover Digital Wallet.
There are certain limitations of the Discover It Secured Card. These include a Lower Maximum Credit Limit and a Lack of Visa and MasterCard Perks. Discover It Secured Card offers you a Maximum Credit Limit of $2,500, which is decent but not as good as Petal 1 “No Annual Fee” Visa Card, which has a higher Maximum Credit Limit of $5,000.
Moreover, Discover It does not offer you any Visa, MasterCard perks, which usually offer you Travel Insurance, Car Rental Insurance, Warranty Extensions, etc. Several card issuers have either collaborated with Visa or MasterCard.
Which Credit Building Card Should is best for me?
You should consider these things- Odds of Approval, Maintenance Cost of Card, Reward Earning Potential to answer this question.
Since all these cards are secured cards aimed at assisting you in building or rebuilding your credit, the odds of approval for all these cards are fairly high.
Capital One Secured MasterCard, and Petal 1 “No Annual Fee” Visa Card are some of the best cards in terms of Cost Efficiency. These cards do not charge you any Foreign Transaction Fee, Balance Transfer Fee and Annual Fee. Other cards either charge you a Balance Transfer Fee, or a Foreign Transaction Fee.
If you are more concerned about the potential of earning, then Petal 1 “No Annual Fee” Visa Card and Discover It Secured Card are some of the best picks. These cards offer you Cashback Rewards on eligible purchases made by you. If you make purchases at Select Merchants, Petal 1 “No Annual Fee” Visa Card is probably the best pick for you since it offers you a cashback reward of 2-10%.
On the other hand, if you wish to earn cashback on all your everyday purchases, then Discover It Secured Card is the best pick for you since it offers you a Cashback Reward of 2% on all purchases made (with a quarterly spending cap of $1,000), then onwards an unlimited cashback of 1% is applicable.
If you wish to avail of Visa Perks, then OpenSky Visa Card and Petal 1 Visa Card are some of the best picks for you. On the other hand, if you wish to avail MasterCard Perks, then Citi Secured MasterCard and Capital One Secured MasterCard are some of the best picks for you.
If you want a credit building card that requires no maintenance cost while earning rewards on most of your purchases, then Petal 1 “No Annual Fee” Visa Card is probably the best pick for you.
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