Have bad credit? Cards, with guaranteed approval, where you do not need a high FICO score, can provide you financing. Apply for guaranteed approval programs, created for bad credit consumers, where you are not penalized for your history but, instead, given a second chance.
Bad FICO Scores Hurt
With a foreclosure or bankruptcy you can quickly find your financing opportunities for loan offers drying up. Unsecured loans can become increasingly difficult to get approved, and traditional banks will typically turn you away from financing. Attaining mortgages and car loans can seem to be completely out of the question.
A Visa or MasterCard in Your Pocket Simplifies Life
Cards however, have become a way of life for many Americans. They are required for purchases online, and used as security for car rentals and other common services. Using cards guarantees acceptance in many locations and provide a financial convenience that we have come to expect.
Guaranteed Accepts – Bad Credit OK
Luckily there are programs available that do not penal you for any financial hardships in your past. A card with guaranteed approval is able to ignore your FICO score and instead will take on high risk individuals and provide you a credit line, securing their investment by other means.
Typically guaranteed approval programs come with higher interest rates, to secure their investment, but sometimes the easy approvals they provide make it well worth while. Commonly these card lenders will offer borrowers secured or unsecured lines of credit. Unsecured offers are typically more difficult to qualify for so read your agreement carefully and be sure to fully understand the terms of your new card.
These cards for bad credit are not intended to be a long term solution for your financial needs. Instead, use them to reestablish your financial reputation, improving your credit score, and then apply for better programs when you qualify for more stringent lower interest programs.
Ultimately, the trick is getting the best value (lowest cost APR rates, annual fees, and penal terms) while maximizing your borrowing and buying leverage as a consumer. When you maximize your access to capital in a responsible way you empower yourself. Access to money is more important than the money itself. When an opportunity arises, or an emergency reveals itself, you will be glad you had the access to the cash you need. As the old saying goes, the best time to borrow money is when you do not need it. That's when getting approved is the easiest.