Guaranteed Approval Credit Cards Help Build Credit
Getting good credit can be a challenge. If there have been bad credit experiences in the past, the chances of getting a credit card can be low and getting one with the better interest rates can be nearly impossible. The good news is that there are Guaranteed Approval Credit Cards that can help anyone get a major credit card that can be accepted anywhere and those cards can be the beginning of building better credit for the future.
Guaranteed Approval Credit Cards are often the sort of credit card that are prepaid. This means that it is not a revolving line of unsecured credit as a normal credit card would be, instead it is a card in which you have put up the cash first on deposit with the credit card issuer and that amount you have given them is what you have as your credit limit. This way there is no risk to the card issuer that you will not pay the bill, they already have your money in advance. There are statements sent to you and you do pay fees for this kind of service, but the advantage to you as a high risk borrower is that you are now able to demonstrate a good responsible paying history and keep this card in good standing to help your credit begin to rebuild.
Many of the Guaranteed Approval Credit Cards have contracts that allow for them to eventually convert over to the more traditional type of credit card after a period of time has passed with good paying history and responsible behavior on the part of the card holder. This is how your credit history can begin to be repaired and they will also be reporting to the credit bureaus so that you can get the better rating as you keep your account in good standing.
Guaranteed Approval Credit Cards can be a great way to begin the process of creating a good credit history after there has been a weaker history to overcome. These cards are a first step in the process of showing the lenders that you are now ready to be responsible. When you have bad credit, guaranteed credit card approval can be a life-saver since it can ensure that you not only get a credit line, but also are able to start building your credit score. There are several cards on the market for people with bad credit. You should learn what to expect when it comes to guaranteed approval credit cards before you start applying for the best ones available.
Prepaid Credit Cards
Not surprisingly, when it comes to guaranteed approval unsecured credit cards are often hard to get. The vast majority are prepaid, which means that you have to put a certain amount into an account, and that will be your credit line. This ensures that if you are ever unable to make a payment, the bank will not miss out on the money since it is already in your account. In order to use prepaid guaranteed approval credit cards to build your credit, you need to make at least the minimum payment on-time, every month. You also have to avoid going over your limit. Gradually, your credit score will benefit from these good habits, and you can eventually stop having to rely on guaranteed credit card approval to get a line of credit.
Unsecured Credit Cards
If you do not like the idea of a prepaid card, you should look for guaranteed approval unsecured credit cards. Cards that are unsecured, as opposed to secured prepaid cards, actually offer you a credit line without requiring you to first put money into an account. This means you use the card to access money that you do not currently have. Obviously, if you do not use this privilege responsibly, you will not build up your credit, and the next time you look for credit cards guaranteed approval types that are prepaid will once again be your only option.
Consider the Expenses of Your New Credit Card
Fortunately for those looking for bad credit credit cards guaranteed approval options are plentiful. In fact, you can likely find more than 100 guaranteed approval credit cards on the market, each of which offers something you might like. If you feel overwhelmed and need to narrow down your options, you should consider what each card offers. The most obvious details to check out first involve the amount you will pay to have the card. The typical guaranteed approval credit card has an interest rate that is higher than you would see on a card for those with excellent credit. However, some cards offer lower rates than others, so be sure to compare them. You should also look for cards with no annual fee, minimal ATM fees, and few other expenses associated with the line of credit.
Look at the Other Details of Each Guaranteed Approval Card
Once you have taken note of the financial aspects of the cards you are considering, you should look at the other details. Some prepaid cards require balance minimums, or only allow you to use the card at certain locations. You should find a card without these restrictions. You should also look for cards with additional benefits, such as instant approval, no credit checks, and constant reporting to the credit bureaus so that your credit score can go up as you use the card properly.
Consider Ease of Use
Another consideration to make is the ease of use when it comes to the guaranteed approval card you choose. Make sure you can pay your bill online with no fees, and find a card that lets you use it anywhere, including ATMs and stores. Some also offer free direct deposit, online bill pay, and text alerts that let you know when your next bill is due. These options can help you take care of your credit easier than ever, which can ensure that you only increase your score, rather than making it worse with missed payments.
Get the Same Benefits as Everyone Else
Just because you have bad credit does not mean you are not entitled to the same perks that many credit cards offer. For this reason, you should keep in mind that some guaranteed approval cards feature fraud protection just like the typical card, protecting you in case your card gets lost or stolen. Some even offer rewards programs, such a percentage of your cash back, allowing you to actually make a little money as you raise your credit score. If you are determined to benefit as much as possible from your guaranteed approval card, you should look into these options.