A credit card can be a challenge. It might become an extremely useful tool, especially under specific circumstances. It is ideal in emergencies, whether they relate to a health problem or perhaps the last pair of boots in a store. But on the other hand, the same credit card can inflict horrendous damage if you fail to use it by the book. The situation becomes even more obvious for guaranteed approval credit cards. Basically, the credit is not so important, so your past is irrelevant. It looks like a great opportunity, yet you better make sure that you use it accordingly. If you are already in financial trouble, you risk going even lower.
Credit cards for bad credit give you the opportunity to start new. No one cares about your past, so you start this venture with a fresh attitude. Since you are not even analyzed, there are obviously some requirements that you have to deal with. You need to send some papers and perhaps offer some guarantees too. Normally, it depends on how much money you need. Think about the interest rate and payment times, as well as your necessities. The list goes farther than that though. Then, what else do you need to consider in credit cards with guaranteed approval?
Never overlook the balance computation method
Since you want a credit card without your credit to be considered, chances are you are not the best at financial planning. Maybe you have just been through an unfortunate accident. Anyhow, you may not always be able to pay everything within the grace period. At this time, make sure that you know how the finance charge is calculated. The average daily balance is probably the most common solution. What does it mean? Nothing special – daily balances are just added in one large sum before being divided by the amount of days in the cycle. Avoid companies that offer two billing cycles. No matter how limited the market for guaranteed approval credit cards is, this option should be ignored. In the long run, financing fees tend to be way higher. It is pure mathematics. Luckily, many credit cards for bad credit do not rely on this idea.
Incentives – between benefits and traps
These credit cards may often come with incentives too. These incentives are some rewards designed to lure you in. You get some rewards for using the credit card. Sure, incentives are not strong enough to attract you and convince you. But then, they can become the definitive factor when not sure whether or not you should use the card. As long as you are not charged extra money for the incentives, this program is clearly worth. Sometimes, you will use the credit card anyway – with or without any awards.
When using incentives on guaranteed approval credit cards, make sure that you know when they expire. Besides, you should be mindful of all potential restrictions, as well as the maximum limits of points. As for using them, it depends on the company:
- Travel
- Gas
- Shopping
- Accommodation
- Insurances
