Whether you want to build up your credit history or improve your credit score, you need a credit card. However, getting approved for a credit card is difficult if you have a poor score or little to no credit history. This might just be one of the greatest paradoxes. You will damage your credit score if you apply for a credit card and get denied. If you make multiple applications in a short period, this will damage your credit score even further. To help you get out of this situation, you might want to look into guaranteed approval credit cards. It’s a unique credit card that could help you rebuild your credit if you use it responsibly. Let’s dive deeper into 100% approval cards, learn their advantages and disadvantages, and help you discern whether this card might be a good option for you.
What is a Guaranteed Approval Card?
When you hear the word “guaranteed”, you typically wouldn’t be wrong in assuming that something is 100% certain. Unfortunately, when it comes to the guaranteed approval category, this is a flawed assumption, and “guaranteed” can be considered a misnomer. Not everyone can get a guaranteed approval card, and regardless of its name, issuers will still have a few requirements for you to meet before they give it to you. If you don’t meet the criteria, you won’t be approved.
Fortunately, the requirements are few, and most people can meet them, even with a bad or no credit score. Perhaps “easy approval” credit cards would be a more suitable name since, even though it’s not guaranteed you’ll get the card, it’s relatively easy to do so. Besides the much more straightforward application process, guaranteed approval cards are the same as regular credit cards. They come with fees, benefits, rewards, and the issuer’s terms and conditions.
What Are Easy Approval Card Application Requirements?
As mentioned, even though they’re called 100% or guaranteed approval, you still need to meet the issuer’s requirements to get approved. Your credit score doesn’t play as big of a role in your application status as it does for some other types of credit cards. To get approved for a guaranteed approval offer, you will most likely have to meet some of the following requirements:
- You have to be of the proper age
- You need to have a current bank or credit account
- Have a valid ID
- Your address needs to be verified
These are just some of the requirements for guaranteed approval offers, and different card issuers might have different requirements. Before applying for this card, read and understand the issuer’s requirements to see whether you would be eligible for their card. While the application process is typically straightforward, you should always read the fine print of the Terms and Conditions and the Pricing and Information. Keep in mind that the ease of approval comes with some drawbacks. These cards typically have higher interest rates and fees and fewer bonuses and rewards.
Guaranteed Approval vs Instant Approval
Guaranteed approval offers are often confused with instant approval or decision cards. However, there is quite a difference between these two.
| Instant Approval Cards | Guaranteed Cards |
|---|---|
| Instant approval cards immediately let you know whether you’ve been approved for a card. You can fill in your application online, and you’ll typically get a notification within 2 minutes that tells you whether your application has been accepted. You’ll normally need a good or excellent credit score to be eligible for an instant approval card. There are some instant approval offers for fair credit, but this is typically not true. | On the other hand, guaranteed cards are designed for those with bad or no credit. It will take a longer time, between 7 and 10 days, to determine whether your application has succeeded. |
Guaranteed vs Pre-Approval Cards
You’ve likely received a card offer or two in the mail telling you that you’ve been pre-approved for a card. Does this mean you’re guaranteed a card if you apply for it? The short answer is no. If you receive a pre-approval offer, it is mainly based on general information about your financial status and credit score. Card issuers that send you these offers don’t have your exact figures – they collect lists of consumers who meet specific criteria and are within a certain income bracket or credit score range.
Only once you apply for a card will these issuers do a full credit check and tell you if you’ve been approved. Getting a pre-approval offer for a guaranteed card might mean you are eligible since you can easily apply for it with bad credit, but it’s not 100% guaranteed.
What Are Guaranteed Approval Card Alternatives?
Guaranteed approval card offers are designed for those with a poor credit score or little/ no credit history. They have fewer requirements for applicants, so many with a poor credit score believe these cards to be their only option. However, you should try to avoid these cards if possible. Since they’re made for riskier clients, they often come with high annual fees and interest rates and can quickly become expensive if you have to carry your balance.
Secured Card Offers
The best alternative for a guaranteed approval card is a secured card. Secured cards are also available to those with poor credit but have lower fees and better rewards and bonuses. The only drawback is that you must deposit to get your card. If you’re a responsible cardholder and pay off your debts on time, your deposit can be returned to you if you decide to cancel your card or upgrade to a better one.