Guaranteed credit cards are made available for those with unfavorable credit history. If you are one of them, this card is your best option because the approval is assured.
It is a fact that having a bad credit history as well as bad credit score makes it very hard to anybody in getting qualified for a credit card.
Most banks would be reluctant of approving a credit card because it is considered as an unsecured loan, and the risk of non-payment is high. Unlike with a car loan, the bank can repossess the item back in the event of default.
In addition, people are weary in maintaining their good credit score because it is mostly the requirement to obtain favorable interest rate related to loans, lower insurance rate, and credit card with high credit limit.
However, the present economic condition makes it hard for you and other people to accomplish such goal. Even those previously remarkable and highly qualified people for credit may have fallen on difficult times also during some moments in their lives.
How can Guaranteed Credit Cards help you?
The guaranteed credit cards can be useful for paying your monthly utility bills or make purchases online.
You just need to be responsible in paying your account as they become due, in order to provide increase in your credit score.
These cards are your help to bring back your credit on track. You can improve your credit in no time by settling your bills in full every month.
What are the options for Guaranteed Credit Cards?
Guaranteed credit cards provide you with options to get approved for a secured card or unsecured card.
Secured Credit Card
Secured credit card requires no credit check. It works by funding the card and you are good to go. Usually, the minimum amount of the fund is $200 depending on the card issuer.
Whatever amount of money you placed in getting the secured credit card, it would also be your credit limit. As an example, if you deposit $500 in the bank, the same amount would be your available credit limit for your purchases.
In addition, secured credit cards report to at least three credit bureaus every month. This is favorable in rebuilding your credit score.
Several companies offer guaranteed credit cards, which are secured including the First Premier Bank and Orchard Bank.
Try also to inquire from your current bank or other local banks that have secured credit cards.
Unsecured Credit Card
Another option in having guaranteed credit cards is the unsecured cards. However, this is not very easy to acquire comparing with secured card because it requires collateral.
You can personally inquire for this card from your local bank, and be able to meet the conditions regarding the details of the collateral.
Knowing these options, it is best to choose in applying online. When you are searching online, you have great chance of comparing offers of many credit card companies that carry guaranteed credit cards.
Moreover, applying online would involve few simple steps and you have the opportunity to know right away, if you are approved or not.