Credit cards are so common, that’s it’s easy to forget that many people find it difficult to get one. Perhaps they have a poor credit history, or maybe they’re just starting out in life and haven’t built up any credit rating at all. So whether you’re a college student or a bankruptcy veteran, credit cards with guaranteed approval are a tempting offer.
Student Credit Cards
So what kind of cards are available? If you’re a student, you’ll probably have a very easy time getting some plastic. Credit card providers like to get you signed up as early as possible to instill lifelong habits. Therefore, you’ll be offered all manner of rewards, as well as guaranteed approval. Generally these rewards are in the form of cash back on certain purchases. In fact, most purchases have some form of cash back, but if you buy from an approved list of suppliers, it’s possible to get up to 20% cash back! Generally, between 1% and 5% is more common though.
The only real limitation of student credit cards is that in many countries, there are laws to rein in unscrupulous lenders. For example, in the US, under 21s have to prove financial independence, and may require an adult to accept joint responsibility for any debts incurred.
Bad Credit History
For others, there are many reasons to look for a guaranteed approval credit card, the most common being a poor credit history, or even bankruptcy. For those people unfortunate enough to find themselves in such a position, it can be difficult to get back on your feet again and start afresh. However, there are still cards available to you, and in today’s economic climate, it has actually become quite a competitive market. This is great news for people with bad credit scores, and it’s worth knowing that you should not jump at the first offer you see. Something better might be around the corner.
One type of card available asks you to supply a deposit equal to the amount of credit required. Although this may sound counterproductive, it’s actually a great way of enforcing discipline on yourself. The real advantage, however, is that the credit card provider will make regular reports to the major credit bureaus, which in time will improve your credit score. Furthermore, simply opening a new line of credit has a positive effect on your overall score, as long as you don’t close your existing accounts (and, of course, keep your spending under control).
If this is not an option for you, there are other innovative cards available. Some unsecured cards will still guarantee approval, even without credit or employment checks. In return, however, they may have lower credit limits, and impose application and monthly fees. Late payment fees will undoubtedly be applied too. The best of these cards offer fixed fees instead of charging interest, so be sure to look out for them!
Guaranteed Approval is Big Business!
In summary, financial difficulties are more common in today’s fragile economy, and credit card providers can no longer ignore this market. With a bit of shopping around, it’s certainly not impossible for those with poor credit scores to still get guaranteed approval on a card that will help them get back on their feet. And those with no credit history, especially students, may have a lot of options when it comes to credit card rewards too!