What are bad credit credit cards guaranteed approval?

The term "guaranteed approval" for credit cards, especially for bad credit, is largely a marketing phrase and a misnomer. No legitimate credit card issuer can offer a 100% guarantee of approval.

All lenders, by law, are required to review an applicant's ability to repay debt. This means they will conduct some form of assessment, even if it's a minimal one. If you see a card advertising "guaranteed approval," it's crucial to read the fine print, as there will always be conditions you must meet.

Here’s a breakdown of what that phrase usually means and the types of cards that are the closest to "guaranteed approval."

The "Guaranteed Approval" Misnomer

Prequalification: Many cards that use this language are actually referring to a pre-qualification process. This is where you can check your eligibility without a hard inquiry on your credit report. While it gives you a very high probability of approval if you meet the criteria, it's not a guarantee. The final approval still depends on a formal application and a hard credit pull.

Minimal Requirements: For some cards, the "guaranteed" part refers to the fact that they will approve almost anyone who meets a few basic, non-credit-related requirements, such as having a valid Social Security number, a U.S. address, and a bank account.

The Cards That Are Closest to Guaranteed Approval

When you have bad credit, your best bet for a high probability of approval is a secured credit card. These cards are the closest to being guaranteed because you eliminate the risk for the lender by providing a security deposit.

Unsecured Credit Cards (Less Likely to be "Guaranteed")

While not "guaranteed," certain unsecured cards have a reputation for being more lenient with applicants with bad credit. These are generally the cards that use the pre-qualification and are often more expensive.

1. Indigo^® Mastercard^® for Less than Perfect Credit: Known for approving applicants with bad credit.

2. Milestone^® Mastercard^® and Surge^® Platinum Mastercard : These cards are similar, offering a pre-qualification tool but are known for their high fees.

3. Destiny Mastercard^®: Often marketed to those with less-than-perfect credit.

Your Best Strategy

Instead of searching for "guaranteed approval," which is a deceptive marketing term, focus on this two-step process:

1. Use a Prequalification Tool: Use the online pre-qualification tools from major issuers like Capital One, Discover, and others. This will show you which unsecured cards you are likely to be approved for without a hard credit check.

2. Consider a Secured Card: If you are denied for an unsecured card or want a safer bet, a secured card is your most reliable path to building credit. It provides a consistent way to show positive payment history, which will eventually qualify you for better, unsecured cards with higher limits and lower fees.

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