Applying for an instant approval credit card is not an uphill task nowadays since many credit card issuers offer instant use cards. However, major credit card issuers will conduct an extensive credit check to see whether applicants are legible. A high credit score guarantees quick access to an instant approval credit card and an instant approval virtual credit card.
The higher your credit score, the higher your chances are of receiving a high-value credit card.
However, some people may be looking to rebuild their credit scores after having a poor credit history. Others might have a bad credit score due to poor financial decisions, including a high credit balance and interest. Therefore, most credit card issuers have a few credit cards issued to applicants who need help with their credit scores.
Although there are a few requirements needed to be achieved by the applicants, such credit cards help build credit.
Key Takeaways
· It is possible to get a virtual credit card from a bank even with a bad credit score
· There are several options in the market from major credit issuers, including banks, that offer virtual credit cards for bad credit
· There are alternatives to virtual credit cards for bad credit that are not from a bank or other major credit card issuers
How do Virtual Credit Cards with Bad Credit and No Deposit Work?
A few years ago, many credit card issuers would not accept applications for those with poor credit scores. A rejection on a credit card application would generally lower the applicant’s credit scores, discouraging them from the further application. Thus, those building credits or making poor financial decisions could not get credit cards.
The chances of receiving loans or credit for such applicants from their banks or credit unions were very low.
However, policies around credit cards and loans have changed, offering everyone a chance to receive a credit card. The increase in the use of virtual credit cards has also led to the increase of banks offering credit cards to their users. Some third-party platforms that offer virtual credit cards do not conduct credit checks or require applicants to have a bank account.
Therefore, such financial platforms have created stiff competition for banks that do not offer credit cards to applicants with poor scores.
A FICO credit score ranging from 300 to 579 is always considered a poor or bad credit score. A bad credit score will lower your chances of receiving a high-value credit card with high benefits and rewards. However, banks and credit unions have designed credit cards readily available for those with poor credit scores.
Thus, you will have to consult with your bank to see which credit cards you qualify for before applying.
What are the Options for Virtual Credit Cards with Bad Credit?
There are a few options for applying for and receiving a credit card with poor credit scores. Some credit cards require no security deposit; thus, you will not pay any money upfront during card application. Most credit cards are unsecured and offer a higher credit line and lower interest than secured credit cards.
However, opening an unsecured credit card account with poor credit scores will attract higher interest rates and APR. Additionally, you may be charged for applying for a virtual credit card using an unsecured credit card for bad credit.
Most applicants with poor credit scores prefer opening a secured credit card, which requires a security deposit during application. A security deposit acts as collateral when applying for a secured card, whose credit limit is mostly set by the security deposit. Also, most secured credit cards are for those wishing to rebuild their credit scores but have high-interest charges on the card.
Some banks offer cardholders a refundable security deposit as a chance to change the card to an unsecured credit card. However, the change will be influenced by the cardholder’s creditworthiness and credit history when they use the card.
An unsecured credit card has more benefits than a secured credit card, even with bad credit. An unsecured credit card will have a higher credit line since a security deposit does not set the credit limit. Most secured credit cards do not have the option of changing to an unsecured credit card gradually.
Unless the cardholder applies for another card, secured credit cards will attract higher interest rates than unsecured ones. Although an unsecured credit card for bad credit has higher fees, most of them lack annual fees charged to the card.
How to Get a Virtual Credit Card with Bad Credit
First, you will have to check whether you qualify to apply for a certain type of credit card from your bank. Too many rejected applications will hurt your ongoing credit monitoring, lowering your credit scores. Not only will the bank look at your credit scores, but it will also look at your credit history.
The credit history contains the necessary information the bank needs to approve your card application. Also, the credit history will determine your credit line by setting your card’s credit limit and interest.
Most credit card issuers require applicants to have a checking account and a physical credit card while offering virtual credit cards. Thus, once you qualify for your credit card, even with bad credit, you can receive a virtual credit card. Usually, virtual credit card applications are made through online banking applications or websites. If you have an instant use card, you can use the instant card numbers to generate your virtual credit card.
Additionally, you can request your bank for virtual credit card numbers to conduct online transactions before your physical card arrives.
Therefore, you can use the following steps to get a virtual credit card with bad credit:
(i) Go to the website of your credit card issuer and request a pre-qualification application
(ii) Pre-qualification will indicate whether you can get approved for a card without further damaging your credit score
(iii) If you qualify for the card, make an online application for the credit card on the website
(iv) Then, fill in your personal details correctly as required
(v) Wait for approval, which may take a few minutes if your credit card information is readily available
(vi) When your credit card is approved, it may take up to ten business days to receive your physical card in the mail
(vii) Thus, you can request a virtual credit number to use as a temporary card number for online transactions
What is the Difference Between Major Credit Bureaus and Credit Scoring Companies?
Credit bureaus are companies that compile the credit history of everyone applying for a credit card or loan. The three major credit bureaus are Equifax, TransUnion, and Experian, which are all equal since none is better than the other. The main function of the major credit bureaus is to collect the necessary financial information on an individual.
Thus, the major credit bureaus will generate credit histories, including your lost cards account history. The three credit bureaus will acquire credit reports from different financial institutions and compile them on the credit bureau file.
Credit scoring companies are companies that use scoring models, which are mathematical formulas, to determine credit scores. Credit scoring companies include VantageScores and FICO scores that generate credit scores based on credit reports. The credit report will show the creditworthiness of an individual, which is the individual’s credit history.
Credit scores made by different scoring models may differ slightly depending on the credit reports they use. However, all credit reports the major credit bureaus make are accurate, although some fixable errors might occur.
Thus, the main difference between the major credit bureaus and credit scoring companies is the credit reports. The major credit bureaus will compile all the necessary information and assemble it into a credit report. The major credit bureaus will obtain information from different financial institutions, including banks and debt collectors.
The credit scoring companies will use credit reports to generate credit scores used to determine a person’s credit limit. Thus, the bank and credit unions will determine how well you qualify for different credit types.
Best Virtual Credit Cards for Bad Credit and No Deposit
It is possible to apply for and receive an unsecured credit card, even for people with bad credit scores. However, you should consult your bank before applying to minimize your chances of rejection. Additionally, pre-qualification will help you gauge your credit score and know your available credit types.
Pre-qualification is not guaranteed approval since pre-qualification means you can meet the bank’s requirements before applying.
After getting approval for the credit card application, customers can request a virtual credit card. Virtual credit cards are restricted for online use since they offer data protection by preventing hackers from accessing card information. Therefore, you will need to have your credit card application finalized before receiving a virtual credit card from your bank.
Also, you can use the virtual card before the physical credit card arrives in the mail. Ensure you ask before requesting a virtual card since not all cards carry the option of having temporary virtual numbers.
Some of the best credit cards for people with bad credit include the following:
Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Credit Card is one of the market’s best options for people with bad credit. It is a secured credit card, meaning you will put down a refundable security deposit to set your initial credit limit. However, you can get back your security deposit as a statement credit in their checking account if you properly manage the card.
Also, if you make on time payments, you can get back your refundable security deposit starting six months after opening.
Therefore, the Capital One Platinum Secured credit card can become an unsecured credit card with a higher credit limit. All that depends if the cardholder is using the Platinum secured card responsibly since the credit limit is set based on credit history. Cardholders also enjoy no annual or hidden fees and a variable APR of 28.9%.
Therefore, minimal charges are applied to the card, encouraging users to build credit.
The Capital One Platinum secured card offers instant credit use, and users can apply for a virtual card for online transactions. Online application for the card is acceptable as long as the credit card issuer has all your credit card details and information. However, you will be required to complete paying the security deposit before having instant credit.
Also, you can control your finances using mobile account access from the online banking application.
Capital One offers its clients free credit monitoring powered by CreditWise, which allows people to monitor their credit reports. Thus, you can see how your credit history is changing, and you will receive alerts concerning changes to the report. You will receive monthly reporting of the trend in your credit history, giving you better improvement in your scores.
Therefore, Capital One offers the best credit card to people with bad credit, giving them a chance to build credit.
PREMIER Bankcard MasterCard
There are two varieties of the PREMIER Bankcard MasterCard credit card; an unsecured credit card and a secured one. They have different purposes; that is, they are used to help people with bad or fair credit scores, depending on the card. Therefore, you must choose the card that matches your needs and requirements.
Alternatively, seek further assistance from the bank’s customer service to make the right decisions.
The PREMIER Bankcard MasterCard credit card is an unsecured credit card useful for building credit. Since it lacks a security deposit, you will have more freedom with the card, although you will have APR charges of 36%. People with a fair credit score can apply for the unsecured PREMIER Bankcard credit card.
You will also have a monthly and annual fee charged to your card, depending on your creditworthiness.
The credit limit on the unsecured credit card is relatively lower than that on the secured card. However, your credit limit will increase every twelve months, depending on how well you manage the card. The bank will require you to pay a one-time program fee, reducing the risk associated with credit cards during account opening.
Therefore, the unsecured credit card will generally have more maintenance fees than its counterpart.
The PREMIER Secured Bankcard credit card offers an initial credit limit depending on the security deposit made on account opening. However, it also carries an annual fee but no monthly fee and a lower APR charge of 19.9%. The card lacks a program fee and is most suitable for those with bad credit or no credit history.
You can increase your credit limit after 12 months, depending on your creditworthiness, just like the unsecured credit card.
Both PREMIER Bankcard credit cards are best suitable for people with bad and fair credit scores. The card helps such people to build credit since it offers monthly reporting to Consumer Reporting Agencies. Such agencies help people with bad credit scores to build credit through ongoing credit monitoring powered by the bank and agency.
Ensure you make on time payments to keep your balances low and avoid credit debt which lowers your credit score.
Indigo Unsecured MasterCard (Prior Bankruptcy is Okay)
The Indigo Unsecured MasterCard credit card is a suitable card to apply for, especially with a negative credit history. Bankruptcy is one of the leading causes of a negative credit history, which most credit card issuers shun. Therefore, the Indigo Unsecured credit card offers a helping hand to those wishing to build credit, even after bankruptcy.
Anyone with a bad to fair credit score can apply for the credit card, making it readily available to all.
The Indigo Unsecured card lacks any security deposit during account opening and has low foreign transaction fees of 1%. You can have pre-qualification checks to see whether you can qualify for an application. The card has an APR of 24.9%, and the bank will charge an annual fee depending on your creditworthiness.
However, the annual fee and other charges might eat into your initial credit limit, causing challenges to building credit.
Generally, the Indigo Unsecured card is one of the best cards in the market to apply for and receive without many hitches. As long as you meet the requirements, you will be able to acquire the credit card quickly. Ensure you make online manageable monthly payments on your card to avoid any credit balance.
The credit card reports to the three major credit bureaus for ongoing credit monitoring approved by the credit bureaus for building credit.
Reflex Platinum MasterCard
The Reflex Platinum MasterCard credit card is open to all credit card types, including perfect credit scores, as it works best to help rebuild an individual’s credit score. Therefore, the minimum credit score required to apply for the card is 300, making it readily available to all. The card is an unsecured credit card; thus, you will not require any security deposit beforehand during application.
Credit card application is fast, usually done through mobile account access.
Although you will need a checking account during the application, your credit score does not have to be good. However, the credit card issuer makes monthly reporting to the major credit bureaus for ongoing credit monitoring. That way, you can continue building their credit as they keep up with their monthly payments to avoid credit balances.
Additionally, you will have no fraud liability in case your credit card is used for unauthorized transactions.
The card carries a variable APR of 24.99% to 29.99%, depending on the applicant’s creditworthiness. Also, the annual fees carried by the card will vary depending on the applicant’s credit score during the application. However, the card has a monthly fee charged, but those with high credit scores of 750 and above will not pay the fee.
The initial credit limit will increase depending on how well the cardholder uses their card.
FIT Platinum MasterCard
FIT Platinum MasterCard credit card is an unsecured credit card requiring no security deposit. Anyone with bad or fair credit, or perfect credit, can apply for the credit card to help repair and rebuild their credit card. Also, you can get free credit monitoring when using e-statements, which allows you to see how your credit score is growing.
Monthly reporting is done to the three major credit bureaus to check how your credit history is growing.
With the FIT Platinum card, doubling your initial credit limit after six months of account opening is possible. However, it depends on how well you manage your card, including making on time payments. On the downside, the card carries a 29.99% APR charge on purchases and cash advances, higher than its competitors. An annual fee is charged on the card, among other fees and interests, making it expensive to maintain.
The FIT Platinum card is a good consideration for a first credit card, especially if you lack any credit history. It is also great for people who do not make huge purchases but require an instant use card. However, you must maintain good spending habits to avoid extra charges, including late payment fees. The interests and APR are relatively high compared to those on other cards for bad credit.
OpenSky Secured Visa Credit Card
The OpenSky Visa credit card is one of the easiest to acquire due to its instant approval without conducting credit checks. Although you will pay a security deposit beforehand, you can get a chance to upgrade to an unsecured credit card. Thus, you can be eligible for the OpenSky Gold Unsecured credit card after six months of card use.
Additionally, the card works like other business credit cards since it is popular for business use.
The genuine Visa credit card offers free access to your OpenSky account, allowing you to monitor your FICO scores. The card offers a variable APR of 20.39%, which is lower than most cards for bad credit. Although it charges an annual fee, it is manageable and lower than those in many cards for bad credit.
The flexible payment dates allow customers to make on time payments at their selected time.
To qualify for the card, you must be a US citizen of 18 years and above with a social security number. Additionally, you will need a stable monthly income to show that you can make monthly payments. However, you should only apply for the card up to four times within sixty days.
Capital Bank can only offer one OpenSky Visa credit card at a time.
Alternatives to Virtual Credit Cards for Bad Credit
Sometimes, more than a credit card may be needed or readily available to meet your money needs at a particular time. Since most virtual credit cards require a checking account, you may fail to receive one if you cross your credit line. Therefore, quick alternatives are in place, especially for people with bad credit.
The main alternative for credit cards with bad credit is bad credit lenders.
Before applying to a bad credit lender, you can make a pre-qualification application without hurting your credit score. Thus, the lending network will match you to the best lender to meet your financial needs. You can choose various lending options that offer instant loans to cover your needs.
You will see the different policies, loan rates, and lenders’ terms from the options and choose the most suitable.
Usually, lenders can offer an initial credit limit higher than that found on your credit card. Also, you will not have to wait for longer periods until your approval is successful. Most loaners will give you an instant loan within 24 hours or less, which will be deposited in your bank account.
Therefore, these alternatives are quicker than any instant approval credit card bad credit. Some of these lenders include the following:
MoneyMutual
MoneyMutual is a loaning network that offers short-time loans with a very high initial credit line available for its customers. You can check if you pre-qualify in minutes since a few requirements are needed before applying for the loan. You must be a US citizen of 18 years and above with a valid phone number and active checking account under your name.
Also, it would be best if you had a steady monthly income that can facilitate your loan repayment.
MoneyMutual does not conduct any credit checks, including hard checks, which secures your bad credit score from further damage. Therefore, you can apply for the loan online and be approved for the loan in minutes. However, you will receive the loan in your bank account on the next business day.
The loan repayment rates depend on how much your loan is and how long you need before repayment.
CashUSA.com
CashUSA.com is one of the oldest and most secure financial lenders across the US, facilitating loans for its customers. You can easily access the loan application online as it also offers pre-qualification without hurting your credit score. Therefore, you can receive a loan in your bank account without any necessary credit check.
Also, you can use the loans for whatever financial need, including emergencies, without any barrier.
Some requirements you need to meet to access the loans include being a US citizen of 18 years and above. It would be best if you also had a regular and steady monthly income that facilitates your loan repayment. Also, it would help if you had an active checking account opened under your name.
Once you meet these requirements, you will receive your loan in the next business day, regardless of your credit types and scores.
BillsHappen
BillsHappen.com is a lending network that offers applicants several options for lenders where they can easily apply for loans. BillsHappen offers an online application for its customers, making it a fast and secure means of accessing loans. Additionally, you can fill in a pre-qualification form to see how well you qualify for a loan offered by the lending network.
Pre-qualification will not make any impact on your credit score since it is a measure of how well you qualify.
Some of the requirements for applying for a loan from BillsHappen.com include you being a US citizen or permanent resident. Also, you should be 18 years and above with an active savings or checking account under your name and a stable income. You should also have a working phone number, a valid social security number, and a valid driver’s license.
Once you meet all the criteria, you will receive a loan for all your financial needs within the next business day.
Each lender will have its policies, application process, and repayment terms. Therefore, you should take your time and read through all information, especially the fine print. Additionally, it is important to note that your information is safe when using these lending networks since the websites are secure.
Your personal information is protected against fraud and scammers, mostly through data encryption using security software.
Conclusion
A few years ago, having an instant approval virtual credit card bad credit was not considered possible. However, the loaning policies have now changed to accommodate everyone, including people with bad credit. Banks and credit unions now offer credit cards to those seeking to build credit or rebuild their credit scores.
Therefore, you can readily apply and qualify for a credit card even with a poor credit history.
However, credit cards for people with bad credit may tend to attract higher rates and fees, including very high APR. Most credit cards have annual fees and other maintenance fees that are deducted from the initial credit limit. Alternatively, you can look for lenders who offer instant loans for those with bad credit.
Such lenders accept all credit types and bad credit scores as long as you meet their requirements.
FAQs
Is it bad to apply for two credit cards on the same day?
Applying for multiple cards within a day may be risky, especially if you are rejected in one application. Most credit card applications will leave a hard inquiry on your credit history, which the major credit bureaus will find. Although the major credit bureaus will allow for a few new inquiries, one in six months, hard inquiries will lower your score.
Therefore, it is important to have a pre-qualification application to know whether you qualify for a certain card without hurting your scores. After pre-qualification, your credit card issuer will require a hard inquiry to approve your card application.
How long should I wait to apply for another card after being rejected?
Generally, it would be best to wait at least six months before applying for another credit card after your application was rejected. Some may take up to two years due to the impact of hard inquiries on their credit history. Usually, the credit card issuer will inform you based on the rejection to help you improve your chances.
Alternatively, you can use pre-qualification applications that offer soft inquiries on your credit history without lowering your scores. Thus, you can check what to work on your credit history before applying for another credit card at a different time.
Obtain fast financing with a same-day credit card or loan.
You can obtain fast financing by applying for same-day credit cards or loans, even with bad credit. Same-day credit cards are the instant card numbers you receive after your credit card has been approved after application. The instant card numbers will be similar to your physical card numbers, which you can generate a virtual card.
You can also apply for loans from online lenders that accept all credit types and scores. Most lenders deposit the loan in their customer’s existing bank account within one business day.
