Guaranteed Acceptance Credit Cards

Guaranteed Approval Credit Cards - Bad Credit History Accepted

Oct 23, 2009

Been turned down due to a bad credit history? Find out where to get guaranteed acceptance credit cards. Improving credit scores with a secured bad credit card achievable.

Guaranteed acceptance credit cards are growing in demand due to a higher percentage of U.S. citizens failing to keep-up with their credit obligations. The average TransUnion credit score fell by 6 points to 651 between the third quarter of 2008 and the first quarter of 2009. The biggest falls were in Arizona (11 points) and California (10 points). Missed and late payments decrease the likelihood of credit approval. A guaranteed approval credit card means that the applicant doesn't have to worry about a low FICO score as there is no credit scoring.

Guaranteed Acceptance Credit Cards - Bad Credit History Not a Problem

The higher risk of the borrower defaulting means that lenders will either require security and/or charge a higher interest rate and charges. However, making repayments on time now and in the future will help in terms of improving credit scores. There are several credit cards for bad credit available, including the First Premier bank black platinum credit card.

First Premier Bank - Unsecured Bad Credit Credit Cards Suitable for Missed and Late Payments

Their guaranteed approval credit card charges an APR of just 9.9%. However there is also an account set-up fee ($29), program fee ($95), annual fee ($48) and a monthly servicing fee of $7. Whilst the minimum credit limit will be $250, this will reduce to just $71 after taking into account the various charges. It is possible to get a second card-holder or receive a cash advance, subject to further charges.

Although the T&C's are transparent, the lender has ensured that their risk is minimal. The main benefit of this credit card for bad credit is that it will now be possible to book a hotel, pay garage fees etc. It can also provide a useful tool for improving credit scores as paying on-time each month will be reported to the leading credit reference agencies (Experian, Equifax and TransUnion). This will help in the future.

First Premier Bank - Improving Credit Scores with a Secured Bad Credit Credit Cards

They also offer a range of secured poor credit history credit cards where borrowers put up their property as collateral. Whilst the interest rates and charges aren't radically different, it is possible to get a higher credit limit. This is because fewer customers default due to the repercussions of doing so. If improving credit scores is a priority, ensure that the credit limit is low and settle in full at the end of the month.

Pre-Paid Credit Cards - A Poor Credit History Credit Card, No Credit Scoring

Whilst a First Premier bank credit card will help in terms of improving credit scores, a pre-paid credit card is better for hotel/garage bookings and maintaining personal finances. The individual loads the card with their own money so there is no credit limit. The fact that no credit is provided means that they are a guaranteed acceptance credit card. Annual fees and loading charges vary between providers.

Is a Guaranteed Acceptance Credit Card with No Credit Check the Right Option?

A guaranteed approval credit card is a great way to rebuild credit, but the charges and level of interest will be higher than on a standard card. Although it is necessary to load the card with personal funds, signing-up to a pre-paid credit card will help to prevent further financial difficulties. It will also perform all the functions of a standard card.

The copyright of the article Guaranteed Acceptance Credit Cards in Personal Debt Management is owned by Asa Ghaffar. Permission to republish Guaranteed Acceptance Credit Cards in print or online must be granted by the author in writing.