Are you struggling to find a high limit credit card due to your bad credit history? Don't lose hope! As a millennial, it's crucial to get on the right track towards financial stability, and a high limit credit card can serve as a helping hand. This article will provide you with insights into the best high limit credit cards available for bad credit, enabling you to make an informed decision for a brighter financial future!
Best High Limit Credit Cards For Bad Credit Table of Contents
Understanding High Limit Credit Cards For Bad Credit
What are high limit credit cards?
A high limit credit card has a higher credit limit compared to traditional cards. These cards allow you greater spending flexibility and the opportunity to manage your finances effectively.
Why get a high limit credit card if you have bad credit?
A high limit card can be a blessing for those with a low credit score as it allows you to build a healthy credit history by improving your credit utilization ratio while taking care of large expenses.
- Improved credit utilization ratio: Credit utilization refers to the percentage of your available credit you're using. A lower credit utilization ratio can boost your credit score.
- Large expenses: A high limit credit card allows you to cover significant expenses without maxing out your card or panicking about finding the funds.
Best High Limit Credit Cards For Bad Credit
We have compiled a list of high limit credit cards designed specifically for people with bad credit. Remember, it’s essential to compare different cards and choose the one that best suits your financial needs and goals.
1. Secured Mastercard® from Capital One
Capital One's Secured Mastercard offers a flexible credit line ranging from $200 to $1000, depending on your security deposit. The card reports to all three major credit bureaus, helping you build positive credit history.
2. Credit One Bank® Visa® for Rebuilding Credit
This card comes with an initial credit limit of up to $300, which can increase over time with responsible usage. It offers monthly reporting to major credit bureaus, cashback rewards, and the ability to choose your payment due date.
3. Indigo® Mastercard® for Less Than Perfect Credit
The Indigo Mastercard offers a credit limit of up to $300, making it suitable for those with poor credit who need a high limit. The card reports to all three major credit bureaus, making it a great option for rebuilding your credit history.
4. First Progress Platinum Prestige Mastercard® Secured Credit Card
This secured card offers a credit limit ranging from $200 up to $2000 with the same amount deposited as security. The card reports to all three major credit bureaus and has a comparatively lower interest rate than other cards on this list.
Best High Limit Credit Cards For Bad Credit Example:
Imagine you're a young professional with multiple student loans and a bad credit history. After researching various credit card options, you decide to apply for the Capital One Secured Mastercard. You make a $200 security deposit and get a $500 credit line.
You start using your card to cover essential expenses, such as groceries and utility bills. At the end of every month, you make sure to pay your balance in full. Over time, you see your credit score improve, and Capital One increases your credit limit without requiring an additional deposit. This boost in your credit score opens up opportunities for better loan terms and rewards in the future.
We hope this guide has helped you understand the best high limit credit cards for bad credit and how they can help you with financial stability. Remember, it's crucial to practice responsible credit usage and be consistent in your payments to rebuild your credit history. Feel free to share this article with friends who might benefit, and explore other Flik Eco guides for more valuable insights into personal finance and investment tips!
