5 Guaranteed Credit Cards
- August 15, 2024
- Credit Cards
There are very few guaranteed credit cards unless it’s a no credit check secured credit card that requires some type of deposit on hold.
A few years back this was not the case. Companies like My Jewelers Club offered large guaranteed approval credit lines. However, as of 2021, this company, along with many others ceased reporting customer payments to any credit bureaus.
Here are five companies that offer guaranteed approval credit cards or credit accounts that report to the major credit bureaus:
5 Guaranteed Approval Credit Cards
1. Current Build Card
Get credit for every swipe – Just use your card to build credit with every swipe and earn points.
1. Credit for everyone – No matter what your credit history, there are no credit checks required to apply and build credit.
2. Build credit using only the money in your account and enable AutoPay so you never miss a payment.
3. Earn points on swipes – Earn up to 7x the points on card swipes at over 14,000 participating merchants, then redeem them for cash back.
4. You must open the Current Spend account to qualify.
2. Self Visa® Credit Card
The secured Self Visa® Credit Card is the card with no credit check that works for building or rebuilding credit.
1. To apply for this Card you must have an open and active Self Credit Builder Account.
2. First, you’ll need to make 3 monthly payments on time, have $100 or more in savings progress and the account must be in good standing.
3. You choose what portion of your savings progress ($100 or more) is used to secure your card and set your limit.
4. Accounts in good standing may have opportunities to increase the credit limit over time.
3. StellarFi Card
1. Create a StellarFi account and select a membership tier.
2. Securely connect a bank account to be used for bill payments and Stellarfi transactions.
3. Use the StellarFi Bill Pay Card to pay your bills and get your payments reported as a line of credit.
4. StellarFi reports your timely bill payments to Experian and Equifax, building your positive credit history.
4. OpenSky Launch Secured Visa® Credit Card
This is a good fit for people with limited funds for a secured card. It only takes $100 to secure your credit line.
1. No credit check to apply. Find out instantly if you are approved.
2. Looking to build or rebuild your credit? 2 out of 3 OpenSky cardholders increase their credit score by an average of 41 points in just 3 months.
3. Get started with just $100 that is fully refundable.
4. Earn up to 10% cash back on everyday purchases.
5. OpenSky® Secured Visa® Credit Card
This is a good fit for people with limited funds for a secured card. It only takes $200 to secure your credit line.
1. No credit check to apply. Find out instantly if you are approved.
2. Looking to build or rebuild your credit? 2 out of 3 OpenSky cardholders increase their credit score by an average of 41 points in just 3 months.
3. Get started with just $200 that is fully refundable.
4. Earn up to 10% cash back on everyday purchases.
Best way to rebuild credit using a guaranteed approval credit card
You will find that some guaranteed approval credit cards come with higher interest rates. But that’s to be expected being that these types of cards are designed for people with bad credit. But there’s a way to avoid high interest.
Pay your balance in full before the due date on your statement every month to avoid high-interest fees plus, charge only small amounts to your card.
Here is an example of not paying your balance in full: Let’s say you have a new card with a 15 percent APR (annual percentage rate). At the end of the first month, your balance is $300 and your minimum payment is $25. Once you pay the $25 minimum payment, your balance is now $275. The $275 balance will begin accruing interest at 15 percent until you make the next monthly payment.
But here’s the kicker: You’ll be paying interest on the already accrued interest. When you carry a balance, your balance just keeps getting bigger because you begin paying interest on a balance that includes the previously accrued interest. Once your balance continues to grow, especially if you only pay the minimum due each month, you end up paying much more than the original amount you put on your credit card.
Grace Periods are your friend
A grace period helps you avoid paying interest on a balance. The grace period varies by issuer, but it’s generally 21-25 days.
If you pay your balance in full every month during the grace period, you never pay interest. No matter how high your interest rate is, it won’t impact your balance if you pay it off during the grace period.
Be warned that not all credit cards offer a grace period which means the day you make a charge; you immediately start accruing interest on the balance. That’s something to consider when you are rebuilding credit on a budget.
If you are thinking “I have bad credit and can’t get a card…,” think again. There are some companies that offer guaranteed approval credit cards that report to the major credit bureaus.
Guaranteed approval credit cards may not have the greatest rewards but the good news is you don’t have to keep them forever. As your credit scores improve with on-time payments, you can apply for better credit card offers.
Think of guaranteed approval credit cards as a temporary solution to help build credit. Once your score increases, switch the guaranteed credit cards out for rewards, low-interest rate, cashback, and bonus point credit cards.