Why guaranteed approval credit cards exist and how to use them to your advantage
1. Why guaranteed approval credit cards exist and how to use them to your advantage!
For those with a good or excellent credit history, instant approval credit cards are pretty common place.
With good credit, you get used to banks approving you instantly.
You will generally receive a notification right away letting you know that you've been accepted for a card
member. Depending on the instant approval credit card company, you may also learn right away what
your credit limit will be. In other circumstances, you may have to wait a period of time to learn how
much you will be able to charge to the card. This is because the credit card company needs to do more
research to ascertain how much credit they can risk extending to you.
But what about people with bad credit?
Guaranteed approval credit cards for people with bad credit came into existence when several catalog
merchants realized there was a segment of society unable to obtain credit. These people wanted to buy
their merchandise but could not since the bank would not give them the financing they needed to
purchase them.
These online store credit cards guaranteed approval to EVERYONE. That included people with bad or no
credit. Business was very good for them. And it gave people the opportunity to buy the merchandise
they wanted. The only catch was that you can only buy merchandise from the catalog of the company
that approved you for credit.
Benefits of catalog credit cards:
Instant online approval
Large unsecured lines of credit
Large credit lines will help you build comparable credit. Many banks when they are accessing
whether or not to approve your credit will look to see what is the largest line of credit you have
ever managed. If you only have $300 credit cards on your credit report, you will find it difficult
to get approved for a $25,000 car loan without a co-signer!
Guaranteed approval – no turn downs
SOME offer you a way to stat to rebuild your credit by reporting your usage to the credit
reporting agencies.
Many consumers once they have found out about guaranteed approval credit cards quickly see how
they can make use of them in their credit restoration plans! Having guaranteed credit card approval,
lets them know its safe to apply and they don’t risk rejection. They will get the card and it puts them
one step closer to their goals of impving their credit score!
