You can find applications for guaranteed acceptance credit cards from various vendors, who have online presence. These specially designed credit cards are meant for consumers, who for a variety of reasons have no or poor credit history, and seek to repair it. But make sure that you are using a reputable company since filling up an online application that requires your personal information can lead to identity theft and fraud.
So use the FREE credit card finder to safeguard your identity and get the best possible credit card to rebuild that credit score!
Given the tough economy, it is becoming increasingly difficult for individuals with low or no credit scores to get credit approval. So it is very important to thoroughly research your credit card options and apply for the right card that will allow you to qualify. Please remember that guaranteed acceptance credit cards usually have high interest rates, low credit limits, high fees and penalties, as well as almost no reward options.
The Fine Print: Understanding Guaranteed Acceptance Credit Cards
As the name suggests, guaranteed acceptance credit cards are just that, they are guaranteed, either in the form of secured cards, prepaid cards, or unsecured bad-credit credit cards.
Guaranteed approval credit cards are designed to meet the needs of a very specific set of consumers. They are as follows:
- People who have very poor credit history
- People who have no way of verifying their income
- People who are new to the credit market, and therefore have no prior history
Given that these credit cards are being offered to those who are at the bottom of the FICO score totem pole, they come with some serious penalties such as very high APRs, low credit limits, and high fees if you miss a payment.
The purpose of these cards is to build your credit history or repair the damage done by making financially responsible decisions. According to myFICO, you need to establish certain fiscal habits that will assure a rise in your credit score. Some of those actions are:
- Make sure you pay your bill on time, and in full.
- Avoid using your credit card to its maximum limit. This sets up a flag on your account.
- Create a budget and be aware of your monthly expenses.
- Avoid making impulse purchases.
It is important to remember that credit inquiries harm your credit score. So make sure to read and understand the terms and conditions of any credit card application before you apply.
While there is no way to guarantee acceptance unless it is a secured card, apply only for those cards that you are reasonably sure to qualify for. Limit the number of cards you apply for and use only one card for your expenses.
Option 1: Guaranteed Acceptance Secured Card
A secured credit card is a common form of guaranteed acceptance credit card. Such credit cards are secured through you by depositing a specified sum of money with the lender, in the form of a down payment. You can send this fully refundable sum in the form of cash or a check. The sum of money is equal to your credit limit. Over time and good financial behavior, you will be allowed to raise the limit. Unlike life, the goal is to become unsecured!
According to MSN Money, most lenders require a deposit that lies between $200 and $5,000 to activate a secured credit card. Once activated, the credit card works like a traditional credit card. You can cancel the credit card at any time, without paying a penalty.
Make sure that you pay on time and if possible, in full. As your credit score rises, you will be able to get a higher credit limit without having to put in a higher deposit.
These secured credit cards are a great resource for the score-challenged since all transaction information can be directly reported to the three credit rating agencies: Experian, Equifax, and Trans Union.
It’s your responsibility to make sure that your payment history is being reported to the credit rating agencies.
Option 2: Guaranteed Acceptance Prepaid Card
Very similar to a secured credit card, a prepaid credit card has one significant difference. Operating like a bank credit card, a prepaid card cannot help raise your FICO score since transactions made using a prepaid card cannot be reported to the credit rating agencies.
Much like a debit card, you must have money in your prepaid credit card account to use it while shopping at any business, online or otherwise that has the ability to process debit cards. Once the account is depleted, you are required to add money to the account for further use.
Option 3: Guaranteed Acceptance Unsecured Credit Card
This card is meant for those individuals who are unable to furnish a deposit towards securing a credit card. In lieu of a deposit, the lender will charge a rather exorbitant credit card APR that is significantly higher than the national average. According to Smart Money, the national average for poor credit on a traditional credit card is 23.41%. One can safely assume that the credit card APR for an unsecured guaranteed approval card will be much higher. You will also have to pay higher annual fees and penalties.
The FREE credit card chaser can help you locate a guaranteed acceptance credit card now!
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