$2,000 Credit Limit Credit Cards For Bad Credit

The credit score is fundamental in the US because, for banks, it’s a measure of your ability to pay. If you have a bad one (below 579), you will not be able to get a loan anywhere except at institutions that offer loans at 200% or more APR. Thus, a high limit credit line is essential, and to build your credit, you have to pay off loans. But as long as you don’t have a credit history, you can’t get a loan.

What can you do to break this vicious circle? A good starting point is to try secured credit card fair credit options. But let’s take a deeper look into what’s on offer for you. These products have been thoroughly reviewed approved, or otherwise endorsed to ensure they are ideal for individuals with less-than-perfect FICO scores.

A $2,000 High Limit Credit Card is secured because you must provide the bank with a deposit of $2,000. It’s like a $2,000 loan. Besides, you should understand that the deposit amount determines your initial credit limit; it can be $500, $700, or $1400 – whatever you decide. So, for example, if you have deposited $500 to the bank, you’ll have a $500 high credit limit.

What does it mean for me?

Imagine you have $2000 and want to build a high limit credit history. You decide to get a high limit credit cards with no deposit, choose the card best for you, and pay the $2,000 deposit in cash or transfer it from your bank account or checking account. In fact, it means that you’ve applied for a $2,000 loan.

Usually, within a day or two, this money is deposited by the credit card issuers and becomes an available credit limit. After that, you can spend it on whatever you want, but it’s still a loan, which means mandatory monthly payments are involved.

It’s important to understand that the monthly initial credit line is not the entire $2,000 you deposited in the beginning but only the amount you spent. So, for example, if you spent $500 in a month and have a card at 12% APR, you would have to pay back the $500 you spent + $5 interest at the end of the month.

How does this affect your credit score?  The basis of your score (35%) is the regular monthly payment. Your financial institution will report to the credit bureau each month that you are making payments on time, and your score will gradually increase. When your reputation is built, you can close that checking account and get your first deposit ($2,000 in our example) back.

Is it worth applying for a $2,000 credit limit Credit Card?

There are only a few options for building a credit history in America: take out a student loan, set up a joint account, get a loan with a co-signer, or receive a secured credit card. If the first two options are unavailable, you’ll have to use the third one. You should understand that the main disadvantage of this 2000 dollar credit card is a high annual interest rate, an average of 18%.

Also, you must have some money to deposit because this amount usually stays with the bank for six months or more until you close the account. So this card is only worth taking when you already have a steady income and a commitment to pay high interest on the loan. Below we will give you some recommendations on using such a card to get rid of it as quickly as possible and get approved for a credit card for bad credit unsecured.

Best Credit Cards with a $2,000 Limit Guaranteed Approval

We found three financial institutions that provide the best-secured high limit credit cards for bad credit instant approval according to our criteria. Read this comparison very carefully and choose the option that suits you best. It is important to note that you can get such a card from many financial institutions with no problem because they do not risk anything due to the collateral.

The U.S Bank Secured Visa Card

First, we’ll examine a card from one of the biggest banks in the United States with a deposit from $300 to $5,000. You don’t have to pay an annual fee to use it. The intro APR on The U.S Bank Secured Visa Card is 25.49%, which is high enough for these credit cards. Also, if you don’t pay your monthly bill on time, you can be charged a late fee of up to $41. The pros of this card are as follows: 

• No annual fees.
• Anyone can get such a card, even with a bad score.
• The money is available for use within one or two days after the deposit is placed.

Compared to other financial institutions, the card from this bank has two significant disadvantages:

• A very high-interest rate.
• Can’t be used at American Express ATMs abroad
• No cash back and bonus points.

Read Also: USAA Bank Review

The Secured Sable ONE Credit Card

This high limit credit card with the lowest annual percentage of 11.74% is available to anyone ready to deposit $500 to $10,000. Their advertiser disclosure states that there is no annual fee for this card, and after four months of active use, you can try to apply for the unsecured card and withdraw your deposit if approved. The advantages of this card are these:

• No additional fees.
• Low-interest rate.
• You can use the money deposited on the same day.
• In addition, it has a cash back of 2% on specific categories of goods.

The only disadvantage of this card is that you will have to pay foreign transaction fees if you transfer the deposit from your foreign bank card.

Chase Sapphire Reserve®

Upon account opening with the Chase Sapphire Reserve®, cardholders can earn a substantial sign-up bonus after meeting the minimum spend requirement on eligible purchases within the first three months.  Different from the chase freedom unlimited and the chase sapphire preferred, this card offers an impressive 3x points on travel and dining purchase APR worldwide, making it an ideal choice for those who often find themselves on the go or dining out.  The advantages of this card are these:

• A $300 annual travel voucher
• Balance transfers
• Chase ultimate rewards hotel credit
• Free access and Complimentary Priority Pass Select
• Global Entry or TSA PreCheck fee refund
• Premium travel protection features
• A 50% boost in point value when redeeming points for travel through the Chase Ultimate Rewards® portal

However, compared to the Chase Sapphire Preferred, the Chase Sapphire Reserve® card comes with a hefty annual fee that may deter some potential cardholders. Additionally, some users may find the high spending power requirement for the Chase ultimate rewards and the sign-up bonus to be a challenging hurdle.

Citi® Double Cash Card

The primary feature that sets the Citi® Double Cash card apart from its competitors is the dual cash back earning structure. Card members can earn 1% cash back on all purchase APR and an additional 1% cash back as they pay off their balances, making it one of the highest cash back rates in the industry.  In terms of conditions, the Citi® Double Cash card requires a good to excellent FICO score for approval. The card also comes with an APR between 13.99 to 29.74 variable. The advantages of this card are these:

• High cash back rate
• $0 annual fee
• Flexibility to redeem rewards in various ways, such as membership statement credits, checks, gift cards, or e statements
• Security features and benefits, such as Citi® Identity Theft Solutions and 24/7 customer support

However, the card does have some disadvantages. There is no sign-up bonus, which may deter potential users looking for an immediate reward. Also, the variable APR can be on the higher side for those with bad credit scores, making it essential to manage your balance carefully to avoid incurring interest charges.

Petal® 2 Visa® Credit Card

Different from the Visa signature, the Petal® 2 Visa® Card uses an advanced algorithm that takes into account various factors, such as income, savings, car rentals, and spending habits, making it an ideal choice for individuals with a limited financial history or those looking to build credit.

Additionally, the card offers a cash back rewards credit card program that starts with 1% cash back on eligible drugstore purchases. And can increase up to 1.5 cash back after making 12 on-time monthly payments – although there is no intro offer here. The advantages of this card are these:

• No annual fees
• Balance transfers
• No intro balance transfer fee
• No foreign transaction fee
• Competitive interest rate range of 12.99% – 26.99% intro APR based on your creditworthiness

Despite offering an accessible credit limit of up to $10,000, some users may find that the initial credit limit offered is low compared to other high limit credit cards in the market. Aside from that, the cash back rewards program, while attractive, may not be as competitive as other high limit credit cards with higher cash back percentages or bonus cash categories. Plus, this card can’t be used at American Express ATMs abroad.

Destiny® Mastercard®

The Destiny® Mastercard® is a popular option for individuals looking to build or rebuild their credit. The card is issued by Genesis FS Card Services and is designed to offer a straightforward, accessible solution for consumers with less-than-perfect scores. The advantages of this card are these:

• Simple application process, and you can see if you’re pre qualified, which means you can check your eligibility without impacting their score
• Credit reports to all three major credit bureaus, helping cardholders demonstrate responsible usage and apply for a higher credit line over time
• Fraud protection (meaning you’re not responsible for unauthorized charges)
• Identity theft alerts
• Zero liability for an unauthorized purchase APR

The Destiny® Mastercard® has an annual fee that ranges from $59 to $99, depending on the cardholder’s creditworthiness. It also comes with a high annual percentage rate of 24.9% for purchase APR, which may not be ideal for individuals who carry a monthly balance.  It’s also worth noting that the card does not offer a rewards program or 0 intro APR offers, making it less appealing for those seeking student cash back or points.

Reflex® Platinum Mastercard®

Flashier than the Capital One Platinum, the Reflex® Platinum Mastercard® stands out due to its easy approval process, especially for those who are building or rebuilding their credit line. With its manageable credit limits, users can keep their spending limits in check and gradually enhance their credit scores over time.  The advantages of this card are these:

• Reports to all three major credit bureaus so positively impact your credit history
• Ability to increase your credit limit
• Balance transfers
• A practical option for individuals looking to build or rebuild their credit
• No foreign transaction fee

The card comes with an annual fee that varies based on your creditworthiness, which may be higher for those with lower credit scores. It also carries a relatively high APR, making it essential to pay off balances in full each month to avoid accruing interest.  While the card does provide free access to a limit increase after a period of responsible usage, it lacks a rewards feature, which may be a drawback for those seeking added benefits from their card. In this case, perhaps Capital One will be a better option.

First Latitude Platinum Mastercard® Secured Credit Card

The First Latitude Platinum Secured Mastercard® card comes from top-tier credit card companies designed for individuals looking to build or rebuild their credit history. This secured credit card account opening offers an excellent opportunity to demonstrate responsible credit usage and improve your credit score over time while also enjoying the perks and privileges of holding the platinum card. The advantages of this card are these:

• Competitive variable interest rate, which is lower than many other secured credit cards for bad credit in the market
• Zero annual fee and flexible credit line
• Global acceptance
• Fraud protection
• 24/7 customer service support

However, no financial product is without its drawbacks. The First Latitude Platinum Mastercard® does require an initial security deposit, which can range from $300 to $2000.  While this security deposit is refundable upon closing the account or upgrading to an unsecured option, it may be a hurdle for some potential applicants.

Milestone® Mastercard®

The Milestone® Mastercard® is for anyone who needs to build or rebuild their credit history. With its easy pre-qualification process, their advertiser disclosure says that applicants can quickly determine their eligibility without affecting their credit score.  The advantages of this card are these:

• User-friendly online account management system
• Accepted worldwide
• Reports to the three major credit bureaus
• Warranty coverage
• Price protection
• Identity theft resolution services

However, there are some conditions to be aware of, such as the annual fee, which can range from $35 to $99, depending on your creditworthiness. The card also carries an above-average regular APR of 24.90%, making it less suitable for those who tend to carry a balance due to the balance transfer fee

PREMIER Bankcard® Grey Credit Card

The PREMIER Bankcard® Grey Card is a versatile financial tool designed to cater to the varying needs of consumers, offering convenience and flexibility in managing their finances.

One of the standout features of the PREMIER Bankcard® Grey Card is its accessibility to a wide range of customers, including those with less-than-perfect credit scores. This makes it an attractive option for individuals seeking to rebuild or establish their credit history.  The advantages of this card are these:

• User-friendly online platform and mobile app, allowing cardholders to easily track their spending, make payments, and set up account opening alerts
• Accessible to a broader demographic
• A higher credit limit increase

In terms of conditions, the PREMIER Bankcard® Grey Card comes with an annual fee and a high regular APR, which may not be ideal for those who struggle to pay off their balances in full each month.

The Discover it® Secured Credit Card

As seen in the New York Times and the Atlanta Journal Constitution, this card is available to everyone without a credit check. Its annual rate is 24.99%, but you can pay only 10.99% for the first six months. Also, after seven months of using the card, you can try to apply for an unsecured card and get your security deposit back if approved.

To qualify for the card, you must deposit $200 to $2,500, which will be your credit limit. Discover doesn’t charge a late fee on the first late payment, nor do you have to pay an annual fee. Users of this card point to its advantages and name these factors: 

• A minimum deposit of $200 is available to almost everyone.
• The 2% cash back on specific categories of goods.
• A 0 intro APR period with the most favorable loan rate.
• The possibility to spend funds deposited within the same day.

It has only one disadvantage – when the first six months pass, the annual rate on the card is very high.

Read Also: Best Balance Transfer Credit Cards With 0% APR

What Is a $2,000 Credit Limit Credit Card?

A credit card with 2000 limit gives cardholders a pre-approved line of credit up to the sum of $2,000. The way it works is quite straightforward. When you make eligible purchases using the card, the amount spent is deducted from the balance.  As you make repayments, the available credit replenishes, allowing you to continue using the card for transactions up to the set limit.

Cardholders need to make at least a minimum payment each month, which is a percentage of the outstanding balance.  Failure to make this payment on time may result in penalties, higher interest rates, and a negative impact on one’s credit score.

One of the primary benefits of having a $2,000 credit limit card is the financial flexibility it provides. Cardholders can make essential purchases, cover unexpected expenses, or even consolidate high interest debt, all while maintaining control over their spending habits.

What Does $2,000 Credit Limit Mean?

Simply put, the limit refers to the maximum amount that you can borrow or spend on your card at any given time. This specific limit is set by the card issuer based on a variety of factors, including the cardholder’s credit history, income, and debt-to-income ratio. Maintaining a healthy credit score and managing your finances rely heavily on it.

Having a $2,000 limit means that you have the flexibility to make purchases, pay bills, order a delivery service, or cover unexpected expenses up to that amount. However, remember that reaching or exceeding this limit can have adverse effects on your financial well-being.

Maxing out your card can lead to high interest charges, lower credit scores, and potential difficulties in obtaining future credit.  So always keep track of your spending, ensure timely payments, and keep your credit utilization ratio balance low. Then you can demonstrate responsible credit habits and potentially earn a higher limit over time.

What Is the Minimum Credit Score Required For $2,000 Credit Limit Credit Card?

The answer to this question depends on various factors, but generally speaking, a credit score of at least 580 is considered good and can increase your chances of approval.

• However, some issuers may have more lenient requirements, which means they’ll accept 2000 credit card for bad credit applications, while others may require a higher score.

Credit card issuers set these requirements to assess the risk associated with providing a cash advance to consumers.

• A higher score represents a lower risk, as the individual has a proven track record of managing their credit limits responsibly by making timely payments and keeping their balances low
• A lower score signals to the issuer that the applicant has a history of late payments or high debt levels, indicating a higher likelihood of defaulting on their card balance

Secured vs. Unsecured Credit Cards

Secured credit cards are designed for individuals seeking to build credit history. To obtain a secured card, you’ll need to provide a cash deposit, which serves as collateral.

• One major advantage of secured cards is that they offer an opportunity for those with poor or no credit to establish a positive credit rating
• Their main drawback is the need for an upfront deposit. Additionally, these cards often come with higher interest rates and fees compared to unsecured credit cards

On the other hand, unsecured cards do not require a cash deposit as collateral. They are granted based on credit score, income, and payment history.

• The primary advantage of unsecured cards is their reward programs, unlimited 1.5 cash back, travel credit account miles, and points
• They generally offer lower rates and fees, making them a more cost-effective option for consumers with good credit
• The downside is that they can be more challenging to obtain for those with poor credit history

In conclusion, the choice between secured vs. unsecured cards largely depends on your credit profile and financial objectives.

• If you’re looking to build your credit, a secured card may be the ideal option
• If you have solid credit and need a card with cash rewards and lower fees, an unsecured one will be the better choice

Who Should Get $2,000 Credit Limit Credit Card?

Credit cards with 2000 limit are best suited for those who have strong credit and a proven track record of responsible card usage. This is because a higher limit typically requires a higher minimum credit score, which reflects an individual’s financial stability and trustworthiness.

Additionally, those with a stable income, a low debt-to-income ratio, and a history of timely bill payments are likely to benefit from credit cards with 2 000 limit guaranteed approval no deposit. They can be really good for individuals who need to make large travel purchases or cover unexpected expenses, as it provides flexibility and purchasing power.

However, there are certain situations where a $2,000 limit may be best avoided. For individuals who struggle with overspending or managing a credit card or debit card debt, a higher limit may exacerbate their financial difficulties. In such cases, a lower limit might serve as a helpful reminder to monitor spending habits and maintain financial discipline.

Additionally, individuals with poor credit scores should steer clear of high limit cards, as they may not qualify for such credit cards or may face steep interest rates and fees. Instead, these individuals should focus on building their credit through secured cards or other credit building strategies.

Read Also: Guaranteed Approval Credit Cards With $1000 Limits for Bad Credit

How to Apply For $2,000 Credit Limit Credit Card

Applying for a $2,000 limit may seem like a daunting task, but fear not! With this step-by-step guide on how to apply, you’ll be well on your way to securing the financial freedom and purchasing power you desire.

• Research and Compare Offers: Look for cards that offer a $2,000 limit and compare their rates, rewards programs (some offer up to 60,000 bonus points), and additional benefits to find the one that suits you.
• Check Your Credit: Make sure you have a good score (typically 580 or above) to increase your chances of approval. You can find credit score tools for free through various online platforms or your bank.
• Gather Necessary Documentation: You’ll need your social security number, proof of income, and proof of address. Having these documents readily available will speed up the process and minimize the risk of an application fee credit and delays.
• Complete the Online Application: Visit the issuer’s website and locate the application form for the specific card you’re interested in. Fill out the form with accurate and up-to-date information (name, date of birth, email address, etc), then double-check your information for accuracy before submitting the application form.

Our selection requirements

To help you recognize which high limit credit card is a good choice, we want to share with you our selection criteria. They include: 

• Limit. We understand that not everyone can make a $2,000 deposit, so we picked cards with a minimum limit of $200. Be sure to look at this and take cards with such a limit that you will be able to give that money away and not need it for at least six months.
• Annual fee. Some financial institutions ask for a yearly fee for using the card. This is an unnecessary expense that you can avoid.
• APR. The most important criterion in any loan. Be sure to pay attention to it and try to choose credit cards with the lowest regular APR.
• Maximum deposit. Your credit limits will improve faster if you use a card with a $10,000 limit rather than $1,000.
• Pros and cons. This last factor helps us summarize the entire review and objectively assess each financial institution.

How Do I Choose $2000 Credit Limit Credit Card?

Good credit cards with $2000 limit guaranteed approval should have a low interest rate or a promotional 0 intro APR offer for an extended period. This will help you save on interest charges if you occasionally carry a balance – although there may be a balance transfer fee.

It should also have no annual fees or hidden charges, as these can quickly erode the benefits you gain from the card. Rewards programs are another factor to consider. A good card should offer a competitive program, such as cash back, points, or miles, which can be redeemed for travel, merchandise, or statement credit.

Look for cards that provide bonus points for categories you frequently spend on, like groceries, gas stations, or dining. The right $2000 limit should also provide useful features such as fraud liability protection, complimentary insurance coverage, and easy-to-use mobile apps for managing your account.

These features not only protect your finances but also enhance the overall user experience. On the flip side, avoid cards with high penalty APR fees for late payments or over-limit charges. While you need to pay your bills on time and stay within your limit, unforeseen circumstances happen, and excessive fees can significantly impact your financial health.

Read Also: $500 Credit Card For Bad Credit: How to Get & Best Offers

How to increase your chances of getting the maximum credit card limit?

Several criteria affect your higher credit limit on an unsecured product:

• Your income.
• The credit history.
• Your expenses and debts.
• Credit limits on another card you already have.

Your limit is restricted to your deposit amount if you use a secured account. However, it’s essential to realize that the sooner you can get an unsecured account instead of the secured one, the better. Those minimum four months of using it before applying for an unsecured account can be a great time to create the proper financial habits that will allow you to increase your limit and avoid the debt trap.

Make sure always to pay bills on time

As we said before, 35% of your score depends on you making your regular payments on time. This is because financial institutions will report your credit card with 500 limit information to the reporting bureaus when you pay everything promptly and when you miss payments. Every late payment of your 2,000 dollar loan is a loss of points in your score. Set up autopayments to ensure you don’t miss your bill payment day.

If that’s not possible, put a reminder on your calendar that you must make a payment. To reassure yourself, ask your family, friends, or partner to remind you to make your monthly payment on this date. This way, you won’t forget that critical deadline.

Use 30% or less of your available credit

Banks can’t assess your reliability based on income alone because many people spend much more than they earn. That’s why they look closely at the amount of the 2,000 dollar loan you use. Their logic is simple – if you use a lot of credit limits, you’re spending a lot, and you won’t be able to pay off your loans. This is bad for your credit score.

However, if your maximum credit card spending doesn’t exceed 30% of your credit, you’re good with your finances, and the banks can trust you. After all, not using all the money available is a good habit that will help you learn how to save in the future.

Pay down your debts

Any credit is only suitable if you pay it off on time. But getting a secured one doesn’t make sense if you have unpaid debts, as it won’t help rebuild the financial standing damaged by other financial obligations. With that in mind, the plan should be to pay off all your loans and debts first and only then get a secured option to build credit history.

Save money for the future

Always try to save at least 10-20% of your income for the future. First, it’s just a good habit that can save your life in emergencies. Second, people with a savings account are statistically less likely to take out loans and have financial stress. And finally, with a $2,000 card limit for bad credit, having savings means not getting into a situation where you can’t afford your payment.

If you have some extra money you’re saving for the future, you won’t ruin your credit history with a late fee – and that’s the most important thing about any loan. To make the process easier, save a part of your money as soon as you receive your paycheck.

Do not save a considerable amount at once; otherwise, you will be taking money from your savings a couple of weeks after you have deposited it. Instead, start with small amounts – first, save 5% of your income, then 10%, then 20%. The more you save and invest, the safer you can feel in this world.

Make good financial decisions

Being able to make sound financial decisions is also a skill. Try never to borrow money or take out a card without calculating how you will pay it back. You should understand basic terms, such as APR and hidden fees, so you know what conditions you’re getting your cash advance.

Also, think several times before you take out a loan. Impulsive decisions don’t lead to good results, so look at the pros and cons before you say “yes” to loans. If you’re not confident in yourself as a person who can make good financial decisions, talk to your loved ones who know how to manage money, watch educational videos on YouTube, or read articles on our blog.

Remember, you have to understand what you’re doing. If you don’t understand the terms you are taking out a loan and how you will pay it back, abandon the idea, as it would be a wrong financial decision.

Conclusion

A $2,000 credit card limit for bad credit is one of the few options to improve your credit history or build it up from scratch. It works on a simple principle – you give the bank a deposit of some amount, and that deposit becomes your limit.

Because the bank (all rights reserved) receives a deposit to guarantee you will get the money back, you can get such a card without any problems in just a few minutes. The annual interest rate is the most important thing to consider when choosing a card. The higher the rate, the more expensive the loan will be.

Try to select cards with a minimal interest rate. It is essential to understand that when you use such a card, you must pay back the total amount spent in the month and the interest on the loan. Therefore, try not to waste more than 30% of your available limit per month; this way, it will be easier for you to make repayments, and banks will consider you a more reliable borrower.

Sources Used in Research for the Article:

1. Sapphire Reserve® Credit Card, Chase, https://creditcards.chase.com/rewards-credit-cards/sapphire/reserve
2. The premium card that revolutionizes credit building, Sable, https://sablecard.com/credit
3. Build your credit and create a foundation for the future, US Bank, https://www.usbank.com/credit-cards/secured-visa-credit-card.html