What Credit Card Has a $2000 Limit for Bad Credit? Find the Right Option for You

Introduction 

For anyone with bad credit, finding a credit card with a $2000 limit can be akin to chasing a mirage. Many believe that low credit scores automatically disqualify them from access to cards with higher limits. But the fact is, even with bad credit, there are credit card options tailored to help you rebuild your score while offering respectable credit limits. In this article, we are going to reveal the best options through which one can get a credit card with a $2000 limit, break down strategies on how to make it happen, and empower you with actionable steps to achieve financial flexibility.

With our credit cards, you’ll enjoy low-interest rates, no annual fees for the first year, and special introductory offers.

Understanding Credit Limits and Bad Credit

Credit limits refer to the maximum amount that a lender allows you to borrow on a credit card. Lenders are more conservative for those with bad credit, which is generally below 580, and may start them off with low limits. However, there are special credit cards that offer higher limits to those working to rebuild their financial standing.

What does a $2000 credit limit mean?

A $2000 credit limit provides breathing room for managing your finances, covering larger expenses, and keeping your credit utilization ratio low (an important factor in boosting your credit score).

However, reaching this limit isn’t usually instantaneous. It requires selecting the right card and demonstrating financial responsibility over time.

Credit Card Options for a $2000 Limit

Let's delve into some credit card types that can be of help in getting a $2000 limit, even on bad credit.

1. Secured Credit Cards

Secured credit cards have been among the favorite options for rebuilding credit. These cards require a refundable security deposit, which generally sets up your credit limit.

Example:

Discover it® Secured Credit Card: Your credit limit is determined by an initial deposit, which Discover will review over time to provide deposit refunds and increases in your limit.

Capital One Platinum Secured Credit Card: Flexible deposit options allow the possibility of higher limits with responsible use.

Why Choose Secured Cards?

Direct correlation between your deposit and your limit.

Reports to all three major credit bureaus to help rebuild your score.

Higher limits are available as your credit improves.

2. Unsecured Credit Cards for Bad Credit

Unsecured cards do not require a deposit and, therefore, are very popular. While initial credit limits are low in most cases, some issuers will regularly review and increase your credit limit with responsible use.

Example:

Credit One Bank® Platinum Visa® - This card often starts with limits as low as $300 but has a history of increasing limits to $2000 or more with consistent payments.

Milestone® Mastercard ®: Most recognized for its easy accessibility, it offers an easy route to higher limits.

Things to Consider

These cards usually carry higher interest rates and fees.

Credit limit increases depend on your payment history and credit utilization.

3. Retail-Branded Credit Cards

Retail credit cards tend to be easier to get with bad credit and can have more lenient limits for store purchases.

Example:

Amazon Store Card: Offers really generous limits for Amazon purchases, particularly for Prime members.

Target REDcard™: Excellent for regular Target shoppers, as its limits go up with activity on the account.

Benefits of Store Credit Cards

Easier to get approved.

Higher limits are sometimes given after a few months of regular use and timely payments.

4. Subprime Credit Cards

A subprime card is a variety specifically for bad credit. While they generally have more fees, they are one sure way to higher credit limits.

Example:

Total Visa® Credit Card: Starts with limits around $300-$500, with the potential for increases over time.

First Access Visa®: Another option that caters to credit rebuilders, offering gradual limit enhancements.

Beware of Hidden Costs

Subprime cards often include annual fees, processing fees, and higher APRs. Be sure to review all terms before applying.

Strategies to Achieve a $2000 Credit Limit

If you’re determined to secure a $2000 credit limit, follow these proven strategies:

1. Start with a Higher Deposit

If you're using a secured card, deposit the maximum you can afford. Many issuers will match your deposit, providing a $2000 limit from the outset.

2. Build Trust with On-Time Payments

Consistently paying your bill on time is one of the fastest ways to build credit and earn trust with issuers.

3. Keep Your Credit Utilization Low

Aim to use less than 30% of your available credit. For example, on a $2000 limit, try to keep your balance below $600.

4. Monitor Your Credit Score

Regularly track your credit score to understand how your actions are influencing it. Free tools like Credit Karma and Experian make this simple.

5. Request a Limit Increase

Once you’ve established a history of responsible credit use, request a credit limit increase from your issuer. Many issuers automatically review accounts every 6-12 months.

Real-World Success Stories

Case Study 1: A $2000 Limit with a Secured Card

Sophia opened a $500 secured credit limit through the Discover it® Secured Card and, after 12 months of on-time payments with very low utilization, she had increased that limit to $2000. Eventually, Discover refunded her deposit and converted her into an unsecured card holder.

Case Study 2: Progressing with an Unsecured Card

Alex applied for the Credit One Bank® Platinum Visa® with a $400 limit. By making all payments on time, his limit doubled in the first year. After two years of responsible use, he reached a $2000 limit.

Conclusion: Your Path to a $2000 Limit

Finding a credit card with a $2000 limit for bad credit is achievable with the right strategy. Whether you choose a secured card with a matching deposit, an unsecured card with growth potential, or a store-branded card, the key lies in responsible use and patience.

Rebuilding your credit is a marathon, not a sprint. Be consistent, monitor your progress, and use credit responsibly. If you stick to it and practice good financial habits, not only will you reach your goal of a desired limit, but you will also open the door to better financial opportunities.

With our credit cards, you’ll enjoy low-interest rates, no annual fees for the first year, and special introductory offers.

Frequently Asked Questions

1. Can I get a $2000 credit card limit immediately with bad credit?

It's unlikely without a secured deposit. However, some issuers may consider gradual increases to $2000 over time.

2. How long does it take to get a $2000 limit?

Most issuers will check accounts for credit limit increases every 6-12 months. If you pay consistently, this can be achieved in 1-2 years.

3. Do store cards give $2000 limits?

Yes, store cards, such as the Amazon Store Card and Target REDcard™, often give higher limits on in-store purchases.

4. Will multiple applications hurt my credit?

Yes, multiple hard inquiries can lower your credit score. Only apply for cards you’re likely to qualify for.