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Should You Get a Guaranteed Acceptance Credit Card?

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Published: 25Apr2010
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For those with bad credit or low credit scores, finding credit cards with good rates can prove to be a challenge. But that does not mean you should give up on your search. The truth is, if you really study your options well, you will find that there are certain "plastic" cards for people with bad credit that are not so bad after all.

What are Guaranteed Acceptance Credit Cards

Guaranteed acceptance credit cards are especially created for people with poor credit history. Although some cards require good or excellent credit, these special bad credit credit cards are available not only for those with poor or bad credit but even for those with no credit history at all.

Why are credit card issuers willing to provide credit for these customers? The reason is because these companies know that people with bad credit make up a large percentage of the market. They simply cannot be disregarded. Also, most people with bad credit are eager to improve or rebuild their credit rating. Thus, credit card companies also know that most of their clients with bad credit will do everything just to stay true to their obligations.

However, not all guaranteed acceptance credit cards are worth taking. Remember that these cards are easily available for anyone who applies. But this does not mean you should slack off and not pay close attention to the credit card deal that you are signing up for. Even if you have a bad credit score, you should be choosy when looking for the "plastic" card you sign up with.

What to Look For

The interest rate is one of the most prominent features of a credit card. Naturally, you will want your guaranteed approval credit card to have a fair rate of interest. Although you can expect that it will be a little higher if compared to the standard cards, you should not settle for one with very unreasonable interest. Shopping and comparing all your possible option is recommended to come up with the best decision.

Also, watch out for variable-rate bad credit credit cards that may start out with a fair rate but increase right after your first month. Apart from the interest rates, check out the other credit card fees as well such as the annual fee, the late penalty fee, interest charges, etc. Also, what you will want to look for is a guaranteed acceptance credit card that will help you rebuild your damaged credit. How? By accurately reporting all your payments to the three major credit bureaus - Experian, Equifax, TransUnion.

After at least a year, you should be offered an upgrade to a standard credit card especially if you have been a good payer all throughout. Yes, a guaranteed acceptance credit card can help improve your bad credit, but only if you know how to use it correctly and if you stay true with your payment obligations. Avoiding late or missed payments is a must. Learn to prioritize and manage your finances to avoid further debt problems.

New Horizon Business Services, Inc NHBS, Inc has been providing consumers and business owners with financing since 1989. Join our mailing list for Free Tips on Rebuilding and Repairing Credit. Click here for the list of guaranteed credit cards.

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