Guaranteed Approval Credit Cards

Guaranteed approval credit cards, also commonly referred to as instant approval credit cards, are cards that are supposed to provide instant approval to eligible prospective cardholders. These cards are usually advertised by credit card companies in an attempt to increase the amount of people that apply. Surprisingly, most of the time credit card companies issue offers for guaranteed approval credit cards to prospective cardholders that have bad credit, and they note that the consumers are more likely to seize the opportunity to apply for a card if the approval is guaranteed. Some car companies even include an identical copy of what the card will look like with your name on it to get you excited about the possibility of approval. If you have already been denied for several credit cards, and have recently been receiving offers for guaranteed approval credit cards, you may want to consider the following information.

Are Guaranteed Approval Credit Cards Really Guaranteed?
Unfortunately, it is possible to be denied for guaranteed approval credit cards, particularly if you have recent loan or credit card defaults on your credit report. However, it is somewhat unlikely to be denied approval for a guaranteed approval credit card because most of the time credit card companies will conduct a brief, non-thorough, preliminary credit check on prospective cardholders before offering them a guaranteed approval card. You may have noticed that the offer stated that you were "preapproved", this simply means that you have passed the preliminary screening process conducted by the card issuer and have a high chance of being approved for the card. Nonetheless, after you submit your application for the card you will still be subject to additional screening in most cases, and it is still possible to be denied approval.

Why Are People Pre-Approved for a Guaranteed Approval Credit Cards?
Contrary to popular belief, many credit card companies are in the practice of offering credit cards to individuals that have poor credit, primarily because they know that people with bad credit, also referred to as subprime borrowers, are more likely to pay exuberant interest rates and unfair penalties because they are desperate for financial assistance. However, there are some guaranteed approval credit cards that are marketed towards people that have good credit, and these cards actually display the true meaning of instant approval credit cards, as people that have exceptional credit can be approved instantly after a brief lookover of their credit report. If you have already been denied for several guaranteed approval credit cards, it is recommended that you do not continue to apply for these cards, as you may damage your credit score by doing so, as enders often frowned upon applicant that are repeatedly denied by other credit card companies.

Are Guaranteed Approval Credit Cards Better Than Conventional Cards?
Although some guaranteed approval credit cards differ in no way from conventional cards, other than the way they are advertised, many of them have higher interest rates because they are marketed towards individuals with poor credit that are unable to obtain cards with low interest rates. However, in many cases if a cardholder consistently makes payments on time and builds an exceptional credit score, they may receive offers in the mail for preapproved credit cards with higher credit limits. Card companies are known for extending higher limits to people that make payments responsibly in an effort to persuade cardholders into conducting more transactions with their card each month, thereby resulting in more interest earned by the card company. Ultimately, guaranteed approval credit cards are no different than regular credit cards, as preapproval is simply a marketing tactic used to convince the prospective cardholder to apply.