We’d all like a little more assurance that, when putting in a credit card application, approval is guaranteed. There are few things worse than the fear that your credit card application could be denied. One of them is actually being denied for credit. You’ve likely wondered if there is a way you can guarantee that you will be approved for a credit card.
Most everyone has seen the television commercials and internet advertisements that promise credit approval. You may have even received such an offer in the mail. These offers usually promise that you will be guaranteed for a credit card regardless of your income or past credit history. Even though such an offer may be tempting, you should consider some things before filling out an application.
Before you apply for one of those guaranteed credit approval offers, you should ask yourself “What’s the catch?” Rest assured there is one. No company is going to give you credit for free, especially if your credit history shows that you are a risky borrower. Guaranteed offers can cost you in many ways of which you might not be aware. Annual fees, application processing fees, monthly fees, and high interest rates are just a few of the ways that you could end up paying more for a so-called guaranteed approval credit card.
The truth of the matter is that you can be denied for a credit card even if the offer “guarantees” you will be approved for it. Before you can be approved for a credit card, your credit history must be checked. Each credit card company has established guidelines about which credit risks they will accept and which they will not. There is a chance, sometimes even a small one, that you could be denied for a credit card based on your credit history.
Obtaining a secured credit card is the only way you can guarantee approval. When you apply for a secured credit card, you must first make a deposit into an account. After being approved, you receive a credit card that has a credit limit in the amount of your deposit or a percentage above that amount. With many secured credit cards there is the opportunity to convert to an unsecured credit card after you have made timely payments for a period of time.
Even the guaranteed approval credit card that comes in the form of a secured credit card has a cost – the security deposit. If you are thinking about applying for a credit card that guarantees approval, make certain to figure out the cost of this approval.