Credit Cards Guaranteed - Facts You Need To Know
By: Morgan Hamilton | Posted: 08th October 2007
Almost on a daily basis emails can be viewed offering the best deals on credit card rates, zero interest for the first six months, no annual fees and many other perks trying to convince the pubic to have access to more credit. Even those without some of the worst credit scores received pre-approved credit card offers and applications for credit cards guaranteed to be approved.
However, not every offer for credit cards comes from the bank issuing the credit card. When they do send out invitations under the pre-approval headline, the disclaimer is always present, that the approval has been granted to apply for the card, and final approval will be determined after credit approval. Meaning, once they contact the credit bureau, which they cannot do until they receive the card back with the individual's signature.
Other companies however, will advertise that after filling out their application, they will send a list of lenders willing to offer a credit card, guaranteed. For the most part, they fulfill that promise, even if a majority of lenders on the list are offering pre-paid credit cards. Credit cards that do not require a savings account balance in their bank, unsecured cards, usually require:
* Processing Fee of 50 percent or more of initial credit limit
* Annual Fees, which can be nearly as high
* Exceptionally high interest rates
* No balance transfers allowed
* No grace period.
People applying to find out how to obtain credit cards guaranteed are not the ones in the top numbers of the credit rating scale. Typically their credit report has been seriously scarred for reasons other than not wanting to pay. Medical bills, divorce or other problems may have prompted an unexpected and temporary lack of funds, throwing their credit history into turmoil.
Once they are financially back on their feet applying for credit cards often leads to outright rejection based on the recent credit problems. By going through a company offering credit cards guaranteed, they can find one that fits their lifestyle and the financial means, enabling them to begin rebuilding their financial history. Even paying the excessive fees usually associated with bad credit, credit cards, is considered by most to be a necessary expense in getting back in good standing with the credit agencies.
Most new credit card holders are advised to make a few small charges each month and pay off the balance on the day the bill is received to begin having the credit card company begin reporting the good repayment habit as soon as possible. For those who take advantage of the offers, they must refrain from applying for multiple cards at once, as each application is reported to the credit agencies, and to subsequent lenders may be an indication of an excessive amount of credit in their name.
About the Author:
Morgan Hamilton is an experienced Financial Adviser who has written a number of informative articles on the topic of Credit Cards Guaranteed. Visit FindQualityCreditCards.com to learn more about Guaranteed Credit Card Offers.
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