100% Approval Credit Cards

March 31, 2012 by  Filed under: Credit 

You may have heard of credit card companies offering cards that are guaranteed approval for anyone. This can seem suspicious because not everyone has good credit standing and will likely be approved for by a reputable lending company. Many companies advertise 100% approval for any person who is old enough to qualify for a credit card and this leads to many consumers being suspicious. While this seems like an unlikely offer, these cards are actually available, though they are available only at a cost to the consumer.

If a person has excellent credit standing, he or she will be able to enjoy gaining instant approval for a variety of credit cards, and low interest is almost assured. However, someone who does not have a solid credit history will have significantly fewer options available to them. Companies that claim they will guarantee approval for any person will charge a fee or a deposit for individuals who do not have a stable credit history.

This can be misleading to some people, but 100% approval for a credit card can sometimes mean that the person must deposit a specific amount of money to the card and then activates the card. Many times, an annual fee and an activation fee will also apply in addition to the deposit on the card. In these cases, the spending limit on the card will be equivalent to the amount the person deposited. Minimum deposits can be as low as fifty dollars and as high as three or four thousand dollars, varying from company to company and their individual policies for credit cards.

These types of cards are generally given to people who have not had a chance to establish a credit history or to people who have a history of bad credit. These credit cards give people a chance to begin building a positive credit score and if they make payments on time, limits can be increased and the deposits will often be refunded. However, if a person is expecting to receive guaranteed approval on a credit card without putting down a deposit, the advertising can seem misleading. Very few card companies advertise the deposit requirement when they advertise 100% approval.

Finding out that a deposit must be made before the card can be used and that the spending limit will be equivalent to the amount of the deposit is often disappointing to people. Even though there is sometimes a feeling of disappointment, it can still be wise to take the card company up on the offer of the deposit card and begin using it in moderation. This will help the person to begin taking back control over his or her financial future and he or she can prove to companies that he or she is responsible and is able to be trusted with higher spending limits without a deposit. This will assist the person in being able to have credit cards in the future that do not require a deposit.

Visit http://www.creditcardrates.com to find the best credit cards for you and some of the lowest credit card rates around.

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