Best credit cards for bad credit with instant guaranteed approval

You would have heard or read somewhere that a credit card is a simple way to improve your credit score. Many banks even have products called credit score building credit cards. But the irony here is that anyone with a bad credit score are not eligible for a credit card. This bad credit score could be due to defaults on their previous loans or credit card due payment.

There are many reasons why a person defaults a credit card or loan payment such as job loss due to recession, family emergency, negligence and many others. Whatever the reason may be only the default will be noted by the credit bureaus and which is available to banks when they run a credit check.

What is a credit score and why is it important?

A credit score is a cumulative number, or an aggregate based on all the loans and repayments that you have done. It takes into consideration the loan you have taken and how regular you have been on your payment. The reason credit report and credit score is given so much importance is because it determines most of the attributes of a loan – Interest rate, tenure, loan amount etc.

So, if you have missed or have late payments on your credit report, then your score will be low. Banks generally prefer people with a credit score of 750 as an ideal borrower. Anything below that your rate of interest(increase), loan amount(decrease) and tenure(decrease) will get affected.

Mistakes people make that affects their score

People don’t know the importance of a good credit score until they apply for a loan and get rejected. Following are some of the common reasons why you might have a bad credit score:

• Not paying EMIs or loan installments on time

• A consistent history of delayed credit card payments.

• Applying for credit (loans or credit cards) with multiple lenders within a short period of time

• Getting close to or crossing your total credit limit

What are the options available

Getting a credit card is a very good way to improve anyone’s credit score. People with bad credit score have only two options to get a credit card.

  1. If you have a stable job in a highly reputed company with a very good salary you may get a credit card from the bank with whom you have your salary account. This option is only useful for salaried people.

  2. For both salaried and self-employed if you want a credit card from a different bank then the best option for you is to get a secured credit card. A secured credit card is where you take a fixed deposit(FD) for a certain amount and a credit card is given to you with the same amount or slightly lesser of FD as credit limit. For example, if you open a fixed deposit of Rs. 20,000, this amount will be your credit limit for the card. With some banks they only allow part of the amount as credit limit say around 80% - 85% of the FD. In both cases the bank will give you interest on the fixed deposit. This is the only situation where your credit card will be instantly approved.


Credit scores are mighty important when applying for a loan especially an unsecured loan. For you to get instant approval credit cards from banks you need to be an existing customer from a highly reputed company with a very good salary. Else, the only option for you is to get a secured credit card by taking a fixed deposit to match your credit limit. He secured credit card is highly recommended as these cards are approved immediately and they help you improve your credit score with on time monthly payment of dues.