Should You Apply For A Guaranteed Acceptance Credit Card?

Finding a credit card with good rates can be difficult for people with bad credit

or low credit scores but this should not mean that you have to give up on your search. The key is to compare your options well. There are still lots of "plastic" cards in the market that are not so bad at 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? One reason is that these companies perfectly know that individuals 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. Keep in mind that these type of cards are easily available for anyone who wish to apply. 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. Of course, you should expect a much higher rates compare to the standard cards, however you should never settle for one with an unreasonable interest. If you want to come up with the best decision, do your own research and compare all your possible options.

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. Another thing you should remember is that the guaranteed acceptance credit card you need to choose should 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.

Copyright (c) 2010 Liz Roberts

by: Liz Roberts

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