Credit cards have become an important and even preferred means payment with major businesses, retailers and service providers. They have gained an extreme significance in today’s financial world. Credit cards allow you to make larger purchases why providing you with large credit limits and stability to break down this large purchases in two installments. But as important and commonplace as it may be to own a credit card, choosing one initially can become confusing for consumer. There is a myriad of offers from different credit card companies that provide so many different options on the credit card that you can choose. One of such offers that you may come across is that of guaranteed credit cards. What are guaranteed credit cards? What benefit do these cards offer to the consumer and where can you find guaranteed credit cards?
Guaranteed credit cards are pretty much the same as instant approval credit cards. The terminology behind the statement guaranteed credit cards simply means that as long as you meet the credit requirements of the credit card provider will be given a credit card.
This terminology is confusing since many consumers are led to believe that guaranteed credit card means that you are guaranteed to be given a credit card no matter what. This is not really true. You can better understand this terminology if you read the fine print at the bottom which usually says “with approved credit”. This means that if you choose to accept the offer of a guaranteed credit card your credit will be checked and if it matches the qualification criteria of the credit card company then you are guaranteed to be provided with a credit card.
So what benefit is that guaranteed credit card to persons with a bad credit rating if there is no guarantee of approval at all? The fact of the matter is that offers of a guaranteed credit cards are often designed for people with bad and sub-prime credit rating. This means that person with a bad credit rating has a better chance of qualifying for guaranteed credit card offers time applying for a regular credit card. However, guaranteed credit cards also have a qualification criteria. If your credit score is damaged beyond the acceptable limits of the company offering a guaranteed credit cards and you are likely to be disapproved.
Featured off most guaranteed credit cards is that they have low to medium credit limits. This works both in the favor of the lender as well as the borrower because since the lender is lending to person with a sub-prime credit rating he is protecting its own interests by restricting the amount of money that you can spend on credit card. It may be a good thing for the consumer to not have the ability to get himself under a large amount of debt since the damaged credit rating are quite likely the result of bad spending habits in the past. Are guaranteed credit card can let you build your credit rating without the tension of overspending beyond your capabilities and getting yourself under a large amount of debt. A guaranteed credit cards can also offer a very low introductory interest rate, it rewards programs, fraud protection and more that will make it a good choice for a person who is already having credit problems.
Guaranteed credit cards or a good choice per person who is trying to rebuild his credit rating or does not have enough of a credit rating such as a student as they offer several benefits of a traditional credit card.