Credit Card Guaranteed Approval

The term “credit card guaranteed approval” may not sound all that unfamiliar to you. If you're like scores of Americans, you have probably brought in a handful of mail many a time to find an envelope stamped guaranteed approval credit card. Of course, there's usually a catch here—the credit card is guaranteed—but to whom? In many cases, these words are simply a trick to get more people to apply, but if you read the fine print, the offer is no different from any other credit card application. The guaranteed approval credit card can be yet another hoax generated by advertising agencies.

Having said that, there are companies that send out legitimate offers for credit card guaranteed approval. The majority of these are either secured credit cards or student credit cards. Let's take a moment to discuss both of these types of credit cards. There is a difference between a guaranteed approval credit card and a guaranteed approval credit card offer—and that one word can make all the difference in how legitimate the offer really is.

Student credit cards can be seen as starter credit cards. They offer students without credit the opportunity to start using credit. This is a double edged sword. Wisely managed, this is an asset to the students. But more often than not, these novices do not have the financial management skills to budget their debt wisely, and end up accumulating far higher balances than they ever thought. While these credit card offers may be guaranteed, a closer look at rates and fees is a suggestion that cannot be over emphasized.

Secured credit cards are the other cards that always have guaranteed approval. This is because they are essentially using your own money. The credit limit on most such cards is as much money as you yourself invest in the venture. While this may defeat the purpose of being issued credit, it is an opportunity for those with little or poor credit to build positive credit provided the credit card company reports regularly to the credit bureaus.