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, an 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.
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 gradually 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. One you will probably have to contend with is the annual fee, which can be more than $125.
A critical component that you must find out before you apply for your new credit card is if the card history will be reported to the credit bureaus. This is a must, because if the credit card company does not report it, then the card 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. However, don’t forget that your payments include the hefty interest rate. Therefore, 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 in any business situation. Many new companies are fraudulent, and, for this reason, it is encouraged to stick with the major name companies.