Guaranteed approval credit cards are more known by many as credit cards for bad credits. The reason behind this name is that these credit cards are issued by companies easily regardless of the credit history of that person. You can acquire this card even if you have bad credit or you do not have any credit.
Most of the credit card companies issuing these bad credit credit cards would require security. One form of security would be an advance deposit in an account when you would sign up. This deposit will allow the issuers to gain access to a source of payment if you would fail in paying your debt as scheduled.
Obviously, the security deposit will define the credit limit of your card. A minimum range of $300 to $1000 or even higher is the usual security deposit.
Guaranteed approval credit cards will help rebuild your credit history, ?which is why it is very useful to those with bad credits. This card can be used to prove your credit worthiness if you will pay your monthly balances on time and remain within the credit limit.
Although you will be paying higher interest rates, this will allow you to resolve your bad credit. That is why you must take time in comparing the cards to see which one suits you. Ask for recommendations from other people or explore credit card reviews and not just sign up on the first offer that came through the mail. Make sure all the terms and conditions of the card are reasonable, including the fine print.
When I had my very first credit card, I had difficulty finding one that would approve my application. So, I asked myself if I should apply for a bad credit credit card. Although it is true that having bad credit and having no credit at all are two different matters, there are companies eager to approve individuals with no credit history.
If you have a cosigner, you can establish you own credit record. Your cosigner must have a good reputation and must be willing to vouch for you. It is best to look in your family or friends for a cosigner.
Lastly, if you still cannot acquire a credit card for yourself, then have a guaranteed approval credit card. Just make sure that the company would report your credit records to the major credit bureaus since this is the only way that you can establish your own credit history. You must know that this card will provide this feature before signing up.