Among the things to consider when taking the guaranteed approval credit cards for bad credit is your ability to pay the balance and interests in full and within the time specified.
Guaranteed approval credit cards for bad credit are the cards availed to you by credit card issuers who understand that nobody wants to be on the wrong side in terms of finances. Unexpected things might have happened in your life leading to your financial predicament, therefore, leniency on your application is in order. Whether you just emerged from bankruptcy, have had late payments on your loans or have multiple charge offs, you will always find credit cards that have guaranteed approval. These credit cards come in two forms; secured and unsecured credit cards.
- Secured credit cards– These are the credit cards that require you to deposit a certain amount of money. The money is refundable upon full payment of the credit card balance. This security is meant to assure the credit card issuer that you are going to pay back the money if not, they get to keep the deposit for good. The good thing about this type of card is that it has minimal fees.
- Unsecured credit cards- These are the credit cards that do not require any deposit prior to receiving the card. Instead, these cards tend to have so many other fees involved. These, therefore, makes the cards expensive especially for anyone trying to rebuild their credit score.
What do you consider when selecting guaranteed approval credit cards for bad credit?
There are many guaranteed approval credit cards available for people with bad credit. However, knowing what to look for when selecting one may help you choose wisely. Below are a few of the main attributes to look out for in a credit card for bad credit.
- Upfront application fee- Credit cards that request an upfront fee are not always the best. This is because it is not the only fee that you will have to pay upon the credit card approval. Consider this, most credit cards will request an upfront application fee of $90, plus an annual fee of about $75 and the monthly fee of approximately $7. This means that you will have to pay $172 in your first year as a cardholder. This is a lot considering that you already have bad credit, it could add unnecessary problems. Always go for the card that does not ask for an upfront application fee.
- Monthly maintenance fee – Most unsecured credit cards for bad credit will always have a monthly fee ranging from $6.5 to $10. However, there are a few of those that do not charge the fee. Always avoid those credit cards that charge this fee as it only adds unnecessary expense to your financial struggle.
- Annual fee- Every credit card issuer charges an annual fee because it is one of the ways they make money. Before taking a credit card, ensure that the issuer charges a reasonable amount. If not, you might end up adding a constraint to your financial situation thinking that you are trying to resolve your predicament.
- Report on your progress – You need to make sure that your card issuer reports your progress to the two major credit bureaus. This is the Equifax and Transunion. This is crucial in rebuilding your credit score.
- Credit checks – Going for cards offered to people with bad credit means that you already have a bad credit score therefore not check is necessary. Always avoid multiple credit checks as they negatively impact your credit score.
- Availability of various modes of payment – The issuers of the credit cards for bad credit are usually non-traditional and so are there modes of payment. Unlike banks where you can automate your payments directly from your account, paying for these cards to non-traditional lenders requires a lot more. You will need to keep track of your payments and make sure they are paid in time. Finding a credit company that offers several modes of payment will be convenient for you, hence an important factor.
Guaranteed approval credit cards for bad credit are available to anyone. What matters when choosing your lender is whether you can afford them and what your goals for the money are. Therefore, if you are looking to get one of this, make your financial goals clear and determine your ability to pay the balance and interest in full. Otherwise, do not take one if you do not have a clear plan of how you are going to pay back.