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.
