A Little Bit About the Guaranteed Approval Credit Card
A guaranteed approval credit card are often used by those who have a bad credit history and are unable to obtain a normal credit card. But a great benefit of these types of cards is that will help to improve your credit rating as well as providing you with the benefits that a normal credit card has to offer. Often the limit for these types of cards will generally range between $5,000 and $10,000.
When applying for a guaranteed approval credit card, there is usually no credit checks required. Although you will be approved for such a card regardless of your income or credit history, generally they will have higher interest rates compared to normal credit cards.
Often when applying for such a card, you will need to agree to pay upfront fees and charges that are made on the card. Also you will have to agree to pay a processing and annual fee that the credit card company charge will charge in order for you to use this type of card.
There are two types of guaranteed approval credit cards available and below we will take a look at each of these.
1. Unsecured
These types of cards are offered by many of the major banks and do not need a deposit to be made by the user. Although they may seem attractive at first they can actually be quite expensive. They usually come with high up front and ongoing fees and you can end up paying as much as $200 to $350 in order to be able to get a guaranteed approval unsecured credit card.
2. Secured
This may be the better option. But with this type of card, you will need to provide money upfront and you will need to open a savings account which then becomes the card balance. Many of these types of cards will require you to have a minimum amount in order for you to open an account. But there are a few companies who allow the card holder to spend all the money in their balance without having to worry about large fees being incurred.
So if you have bad or no credit and you are looking to build up a good credit history then you may find that a guaranteed approval credit card is the best way to achieve this.
