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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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 credit repair. We also have a list of recommended bad
credit credit cards and guaranteed approval credit credit
cards.
http://www.newhorizon.org/Info/guaranteedcredit.htm
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