If wisely used, credit cards can be one tool Canadians could use to build or re-build their credit. Anyone can take advantage of guaranteed approval credit cards for bad credit.
Since people with poor credit history are likely to be denied offers from most credit card issuers in Canada, guaranteed approval credit cards for bad credit are designed to be an option for such individuals. This is because the cards are offered to people under very lenient requirements. In addition, the cards are appropriate for people with low, bad, or no credit scores. The cards also have a high rate of approval as compared to the standard credit cards. The bad credit limit could be varied for different credit lenders.
Types of Guaranteed Approval Credit Cards for Bad Credit
When seeking a bad credit guaranteed approval credit card, it is important for you to know the options available in order to select the most appropriate for your financial situation. Here are some of the offers you may come across:
For these cards, the lenders will require you to provide a cash deposit. This deposit is used as security or collateral for your credit. The lenders find it more convenient to approve your credit card request when you provide a cash deposit for your credit card. This is because it minimizes the risks the lender might undergo if you fail to repay the loan.
Unsecured credit card:
Unsecured credit cards do not require you to provide a cash deposit. These cards are considered risky for the issuers, they are associated with higher interest rates, higher fees as well as a low limit in terms of credit. The lenders will approve your application even when your credit score is bad.
Prepaid credit cards:
This is another option for guaranteed approval credit cards. For this card, one is required to pre-load some cash to your card and use it for credit until it runs off. These cards are advantageous because they are not associated with interest rates.
How to Use Your Credit Card To Build Your Credit
Keep checking the progress you are making with your credit card in terms of growing your credit. This will help to determine whether you are making the appropriate moves or not. Bad credit cards with guaranteed approval can help you grow your credit score very fast. To achieve this, here are some tips you should observe:
- Make sure you regularly use the card. This means purchasing goods and services using the cards as well as making the payments in good time. Also, pay your credit balances in full.
- Avoid overusing the card. Overusing the credit in your credit card may indicate that you are unable to manage your finances.
- Avoid closing your credit account if you do not have a valid reason. Keeping your account open for a long time contributes to building your credit score.
- Always consider borrowing when you are sure you can pay back. This will help you avoid late payments or failure to pay, which can further ruin your credit score.
- For you to get the best-guaranteed approval credit card for bad credit, it is always important to evaluate the available offers before applying. This will help you avoid shifting from one card to another and get a card that meets all your needs.
At Bonsai Finance, our experts can always help you make wise decisions when it comes to choosing these cards. With our partner lenders, you can get credit cards that meet your needs.
Guaranteed approval credit cards for bad credits are therefore very important if your credit score is questionable. You get to enjoy the benefits of credit cards despite your bad credit. Always contact us at Bonsai Finance if you have problems or questions regarding these credit cards and any other financial problem.