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Tips In Applying For Guaranteed Approval Credit Credit Card

Mon, 01/21/2008 - 19:53 — Mydrive

When applying for guaranteed approval credit cards for bad credit, the application process is usually done online. As the name suggests, these type of credit cards give instant approval and are especially designed for people who are suffering from bad credit. Perhaps you've received offers for instant approval bad credit cards from your e-mail. For those with bad credit, it is easy to get enticed by these offers. But before you go and sign up, check out these tips:

  • 1. Don't make decisions hastily.
    Don't be tempted with the first guaranteed approval offer that comes your way. Before you make any decisions to apply, be sure that you've checked all your options first and that you've chosen the one that best matches your needs. Take the time to compare between different guaranteed approval credit cards in the market. Check out their application procedures, rates, do they submit to the credit bureaus, will they give you a better rate after a period of time with good payment history.

  • 2. Don't submit too many applications.
    Don't send out several applications to different guaranteed approval credit cards at once. This will only damage your credit further. Too many inquiries on your credit report will have a negative impact on your rating. Even worse, if a lender looks at all the inquires and sees that no one approved you (no new credit lines from the inquiring lenders) they will deem you an even bigger credit risk.

  • 3. Prepare a repayment plan.
    If you do get approved, have you created a definite and effective repayment plan? Don't go into a situation unprepared. The important thing to remember as a credit card holder is to keep up with your bills regardless of the type of credit card you use. Will your monthly salary allow you to pay additional expenses or is it more practical to work on improving your credit first before getting a credit card?

  • 4. Consider other options.
    Aside from getting a bad credit credit card, another tool that can help you improve your credit score is to get a department store card or a gas station card. These cards are easier to obtain and work similar as a credit card. The difference is that you'll have to pay your balance by the end of the month and you're not allowed to carry over balances for the next billing cycle. Nevertheless, this requirement will help you keep expenses under control and keep your payments on time.

  • 5. Be determined to pay off your balances completely.
    If you're really decided on owning a bad credit credit card, be determined to keep up with your obligations to pay. Don't let anything keep you from submitting your payment on time. Avoid carrying over balances. Be consistently aware of your payment schedules.

  • 6. Read before signing.
    Again, take your time in reading every statement in your credit card's terms and conditions page. Make sure that you understand everything clearly. If you have questions, don't hesitate to call the bank and talk to representative. It is very important to be sure that there are no vague clauses or hidden charges in your card.

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    About the Author

    Liz Roberts is a loan consultant with NewHorizon Finance and has been providing consumers and business owners with financing since 1989. Join our mailing list for FREE tips on building and repairing your credit . We also have a list of recommended bad credit credit cards

    Copyright 2009

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    Comments

    Fri, 05/29/2009 - 03:19 — AlexaJ.

    Which credit card is best

    Which credit card is best for building up a bad credit score?
    Wed, 06/03/2009 - 02:39 — winnable

    well said. I always ask to

    well said. I always ask to follow.
    Wed, 06/03/2009 - 02:48 — winnable

    Effective ways to rebuild credit

    Have you stumbled into a debt hole or are on a brink of facing bankruptcy? If yes, then it would be very difficult for you to get any type of loan approved. The best way is to rebuild your credit score. Though it sounds tricky, it is not as hard as you are thinking. There are number of ways in which you can rebuild credit, but you just need to make yourself aware about how you will do this. If you are able to learn necessary steps and technique, you will be able to quickly rebuild your credit. The following are some of the ways to rebuild your credit following a bankruptcy: Take the benefits of a new credit card: The first step to improve your bad credit is to obtain a new card. With these cards, an amount of money which is equivalent to your credit limit is deposited by you with the bank or credit company much prior you receive the card. The reason for doing this is that if you are not able to pay your bill, the company will deduct it from your account. Once you show that you are regularly able to pay you bill, you can soon upgrade your regular card and the company would build a trust in you. The best part of secured credit card is that you get instant approval for credit but it requires small deposit to begin. But if you have messed you credit scores, this is quite difficult and risky as you would not like to put your assets as security deposits. Make all your payments on time: With timely payment, you will be able to improve the effect of bankruptcy on your credit report. Few late payment or minor misses may affect your credit report a bit but major late payment or misses a bad impact which may hinder your recovery from poor credit. Again this is difficult as you are on the brink of bankruptcy. Modify your personal budget and stick to it: One way is to create a monthly budget with main focus on controlling expenses and saving money. By making a habit of saving money and putting them in your bank account, you will not have to worry about money problems and will be able to pay on time. Again you cannot go beyond a certain limit; you can't stop living after all!

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