Improving Your Credit with a Guaranteed Approval Credit Card

Most credit cards issued by major credit companies require an application and approval process in which a person’s previous credit, employment history, annual income, and much more are used to determine whether or not they can be issued a card, the balance they can be approved for, their interest rate, and more.

This is no problem for a lot of people, but what about the huge number of people who’ve had credit trouble in the past? These people often have a huge amount of trouble getting new credit, and as if some cruel catch 22, without getting that new credit, they can’t improve their old credit scores. Luckily, there is an answer. There is a solution.

The solution is guaranteed approval credit cards. These special cards are designed for people who’ve had previous credit trouble and credit scores and records that need improvement. They allow the banks and major credit companies to issue cards to higher risk individuals while minimizing the potential downside and giving those individuals a chance to improve their situation.

This might sound a little odd at first. Most people don’t really think of banks or credit issuers as their friends. But in a way, they are. After all, the credit companies can’t make money off of someone who isn’t using one of their cards! So don’t worry, these guaranteed are completely legitimate, and they’re offered by some of the most reputable companies around.

Guaranteed cards generally have some common features. They’ll generally have fairly high interest rates, often around 19%, but sometimes as low as 14% to 15%. These higher interest rates are how the issuers make enough money to warrant issuing the cards to “riskier” individuals.

There will also often be an annual fee. The fee isn’t normally much, but again just helps ensure the issuers make enough money. Another common feature is for guaranteed credit cards to be “secured”. Secured cards require the applicant to put up security funds, essentially collateral, to back their credit application.

This might all sound a little bit daunting, but the reality is that while the interest rate might be high, and the prospect of putting up security funds unattractive, the long-term benefits of improving your credit far outweigh any of the downsides.

If your credit has been damaged, and you’ve had trouble being issued credit in the past, then applying for a guaranteed approval credit card might be the best thing you can do to start rebuilding. Just the act of being approved for a card goes to help your credit history, so right off the bat, you’re moving forward. You can then continue to improve your credit through responsible use of your new card.

Essentially, every time you pay your credit card bill on time, it boosts up your credit history, and in turn your credit score and overall credit worthiness are improved. This isn’t an instant process. It takes time. You can’t expect your credit to be back to normal after only a few months of timely payments. But through long-term responsible credit use and consistently on-time payments, you can essentially erase your poor credit history and build good or even great credit. The long-term benefits of that can be life changing.

So if you’ve got bad credit and feel like there isn’t any way to get away from it, then you owe it to yourself to check out some of the guaranteed credit card approval offers that a number of reputable institutions have put together. In today’s world, credit is immensely important, and repairing your credit might be the best thing you could do for yourself.

By signing up for a guaranteed card, and putting together a solid history of responsible use and on-time payments, you could turn your credit around faster, and easier, than you think!

Note: If your credit is already average or better than average, a guaranteed card might not be for you. Instead, you might want to consider one of the many instant approval credit card options! Apply online and find if you’ve been approved in as little as 60 seconds!

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