If you have bad credit, finding a credit card with good rates can be a challenge. The good news is that there are credit card issuers in the market that offer instant approval. Despite having bad credit, you can be assured that your application will be accepted.

What are Guaranteed Acceptance Credit Cards?

Guaranteed acceptance credit cards are especially offered for those with poor credit or no credit history. Some issuers have high credit standards, but if you do your research, you can find that bad credit credit cards are available as well.

Why do some issuers offer credit cards for bad credit? Credit card companies know that there is a large market demand for these credit cards. In addition, people with poor credit rating are often willing to rebuild their damage credit history by being consistent with their payments.

Nevertheless, not all guaranteed acceptance credit cards are worth it. As a customer, it is still up to you to find the right credit card that comes with a reasonable deal.

What to Look For

The interest rate is an important factor when comparing credit cards. Of course, you want to find a guaranteed approval card with a low APR. Although you can expect the rates to be higher than credit cards for good credit, you should never settle for one with unreasonably high rate.

Watch out for bad credit credit cards with variable-rate. These cards may offer incredibly low APR at first but that could change right after the first month you signed up. Pay attention to other fees associated with your card such as the annual fee, the late penalty fee, cash advance charges, balance transfer fees, etc.

Look for a credit card that will help report your payments to the three major credit bureaus-Experian, Equifax, TransUnion. Remember that your main goal is to use your card to rebuild or improve your credit history.

After at least a year of consistent payment, you should be able to upgrade your account to a standard credit card so you can enjoy lower interest, higher credit limit, rewards opportunities and better terms.

About the Author
Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. NHBS also has a list of recommended Credit Cards for Bad Credit.
Copyright 2010