Can A Guaranteed Approval Credit Card Really Help If You Have Bad Credit?

Once you get into a situation where your credit is no longer recognized as being acceptable, you begin to find that it can definitely put your life on hold. You need some way to be able to start rebuilding your credit and you are wondering how. Although there are more ways than one, one effective way is to get a guaranteed approval credit card. Here is how it can help you get a better credit rating.
When looking for your guaranteed approval credit card, you need to be aware that they are different from regular credit cards. They pretty much work the same way, but are made to ensure that the credit card company is at a place where it can minimize potential loss.
In order to do this, they place a number of fees on your guaranteed approval credit card. These will already be on the card when it is issued to you, and will then leave you with a minimum amount of room to be able to charge anything. In fact you may be able to charge about $100 – and possibly even less for your first bill. Some of these cards will give you a little more room to charge more.
Compare the rate of interest on the various offers for your guaranteed approval credit card. These are generally higher than most other credit cards – again to minimize their risk. Typically it will be above 19%. Of course, this is hardly competitive for a regular card, but if you can endure it for a while, your credit rating will slowly improve and soon you will have better offers come your way from the same company.
Be sure to look at all the fees that apply to the new card. The reason that it is called a guaranteed approval credit card is largely because of the fees that apply. Another one you will have to contend with is the annual fee, which will usually be more than $125.
An alternative to a guaranteed approval credit card is a secured credit card – but it will cost you even more. The expenses for this kind of credit card come from the fact that you will have to open a savings account that is usually equal to the amount of your credit limit. So, you can see, the guaranteed approval credit card is the cheaper of the two ways to go.
One very important thing that you must find out before you apply for your new credit card is if they report to the credit bureaus. This is a must, because if they do not, then it cannot help you at all. Regular reporting means that you can raise your credit rating as long as you make your payments on time – every time. Also, keep in mind the hefty interest rate – paying on time will also save you some money, too.
Before you sign on to any such deal, though, it is always a good idea to check out the company that you are dealing with for any business. Many new companies are fraudulent, and, for this reason, it may be a good idea to stick with the major name companies.

Joe Kenny writes for NationsFinance, offering views on UK credit card offers, visit his new site today for more credit card comparisons and related information. Visit today:

Credit Cards Guaranteed – A Review to Help You Find the Top Guaranteed Credit Cards

Many people want credit cards guaranteed for approval, as obviously they don’t have to sweat out the waiting process of finding out whether they were approved or not.
Typically, people looking for these cards have low credit scores, and find it hard to get approved for a regular credit card, which is why they are looking for guaranteed approval.
Your initial reaction might be to avoid using credit cards, due to your low credit score, and try t o pay for everything with cash. However, one of the important things you need to remember about these is that they offer you an opportunity to instantly start raising your credit score, very important for someone in your position.
Also, these can actually help you, because they generally come with a low spending limit, which makes sure that you don’t spend more than you could afford, which is how you got into this situation in the first place. Hopefully, this will instill into you the habit of spending what you can afford and therefore building up your credit in this manner.
Typically, when it comes to credit cards that are guaranteed, you don’t have to worry about credit checks (hence the term credit cards guaranteed). If they looked into your past before granting you the credit card, they obviously would not be guaranteed.
However, an important note about these cards is that they always come with higher interest rates than your ordinary credit cards, simply because of the risk you represent to the company giving you a card.
Of course, before you go through with this process, don’t just accept the first company you see. Make sure to compare the various firms and find the best interest rates around.
This can be done very quickly and effectively online-just take a few minutes to fill out each application, and you can instantly receive tens if not hundreds of quotes in just a few hours, which will help make the decision of which credit cards guaranteed to go with much easier.
Be sure to look for low long term interest rates versus short term- quite simply, many companies offer dirt cheap initial rates in order to get you hooked, and then they raise them a lot in a matter of a few months, once you are already sucked in.
Another tip is to budget weekly, and make sure you don’t spend more than that amount. Quite simply, figure out how much money you have available to spend for the week, and stay right at or under that amount, and you will be able to pay off your bills on time, and therefore raise your credit quickly.
The important thing is that you learn from your past mistakes and improve your financial habits in the future. This is where budgeting comes in, and if you do this properly and every week, you will find your credit score going up very quickly.
Finally, consider hiring a credit repair company, as these firms are experts in the industry, and can help you raise your credit score much more quickly than doing the methodical paying your bills on time method.
Therefore, finding long term rates is much more important. Hopefully these tips on credit cards guaranteed will help you find the right one to help you raise your credit.

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