How to Compare Guaranteed-Approval Credit Cards

If you are unable to get a regular credit card because of poor credit, guaranteed-approval credit cards can help. Secure guaranteed-approval credit cards require a cash deposit equal to the card's credit line. Once the deposit has been made, the guaranteed credit card approval is complete. You can use guaranteed-approval credit cards the same way as regular cards, but you cannot exceed the amount of your deposit. If used responsibly, guaranteed-approval credit cards help rebuild poor credit, and help control spending habits. Before applying for online-approval credit cards, you should understand how to compare them.

Things You'll Need

• Cash deposit

Instructions

Comparing Guaranteed-Approval Credit Cards

1. 

   Choose a card company that reports your payments.

   Find a guaranteed approval-credit card that reports your payments to the major credit bureaus. As long as you make your payments on time, reported payments help to increase your credit score and improve your overall credit status.

2. 

   Choose cards that allow upgrades.

   Select guaranteed-approval credit cards that allow upgrades to a non-secured status. Secured online approval credit cards typically incur higher interest rates and a lower credit limit. Non-secured status has lower rates and a credit limit increase. If you maintain positive payment habits, your guaranteed-approval credit card should allow you to upgrade.

3. 

   Search for guaranteed-approval credit cards that have an introductory annual percentage rate of 0 percent. Read the terms of the card to find out how long the introductory rate lasts. Read the terms to find out the future annual percentage rate after the introductory period has ended.

4. 

   Confirm how soon you can use the card.

   Find out how long you have to wait before you can begin using the card, after you complete your guaranteed credit card approval. For secured guaranteed-approval credit cards, you can usually use the card right away after making a deposit to secure the account. For non-secured accounts, it might not happen instantly.

5. 

   Select a major brand.

   Select a major brand when comparing online approval credit cards. Every business accepts Visa and MasterCard, but store cards and unknown card names may not always be accepted when making a purchase.

6. 

   Compare credit limits.

   Compare the credit limits for each guaranteed approval credit card. Each card has varying credit limit amounts, typically lower than regular credit cards. After the guaranteed credit card approval has been completed, a deposit equal to the credit limit is required.

7. 

   Choose online approval credit cards with rewards programs.

   Search for an online approval credit card that has a rewards program, and earn cash or points when you spend money. Some rewards programs give points or airline miles. Read the terms, and find out the spending requirements for receiving rewards.

8. 

   Avoid online-approval credit cards that have monthly fees.

   Choose a guaranteed-approval credit card without monthly maintenance fees and annual fees. Some non-secured cards incur monthly maintenance fees. Because some cards do not require a deposit, companies offset the risk by charging monthly fees.

Tips & Warnings

• Interest rates for guaranteed approval credit cards are typically higher than usual, especially if you have bad credit.

• Each guaranteed credit card approval request you make impacts your credit score; avoid applying for multiple cards.

References

• Guaranteed cards.
• Guaranteed approval.