How You Can Get A Guaranteed Credit Card

What is a guaranteed credit card and how do the letters that you receive in the mail work, as far as being pre-approved for a credit card. Many people are confused about this, especially in the case of bad credit because they receive these guaranteed approval letters as well. In fact, if you have good credit you may simply receive guaranteed credit cards in the mail rather than just the letters, but what do you do with these credit cards? Do you have to send them back or are you already entered into a contract. We’ll go over these common questions when it comes to the guaranteed approval credit card.

A guaranteed unsecured credit card is available through many companies because even if you have no credit whatsoever, you still may be able to get a credit card with a low limit, such as about three hundred dollars. If you go over the limit you will be subject to fees of course, but people with no credit history whatsoever – and no bad credit history – should be able to get just about any credit card that they apply for, as most companies will issue some sort of credit card for no credit. So, don’t fall into the trap of believing the myth that credit cards guaranteed approval aren’t available for those with no credit.

Let’s talk about the different aspects of a credit card. First of all, let’s discuss the credit limit that you might have. Normally, when you first apply for a credit card and you don’t have any credit built up you will receive a card with a limit of about $300. Then, you can use the card and after about a year you will be asked by the credit card company, or sometimes even without them asking, if you want to raise your credit limit and at that point it may go up to something like $1000. Then, throughout your credit career you will be able to get higher credit limits as you prove that you can responsible with your card and that you will pay on it each month.

Next, let’s talk about the grace period and the over the limit fees. When you use your credit card you will have a certain period of time before you are charged the interest on what you spent. This is called the grace period. If you don’t pay the debt off within the grace period of you decide to make simply the minimum payment then you will have interest added onto your balance. Also, there is an over the limit fee which can be extremely expensive. When you go over the preset limit that you have on your card you are charged an over the limit fee.

A guaranteed credit card can be a great thing. For emergencies it is nice to be able to have that cash on hand in case anything comes up that you don’t have the cash right away to pay for. However, people can run into problems with this because it is so tempting to use your credit card for things that you want, but don’t necessarily need right now, and certainly aren’t emergency items. If you get a credit card be very careful how you spend it because getting into debt with one is quite easy and getting out can be a challenge.