Finance

Don't Give Up on Plastic – Go Guaranteed

By: Lucy Zemljic on May 30, 2014
It’s frustrating to have a credit card application denied time and time again. If you’ve gone through a rough patch financially, and your credit score has taken a hit, you may wonder if you’ll ever be able to use credit cards again. Don’t give up on plastic just yet though, because there’s a card out there for you, and your approval is virtually guaranteed - it’s called (very fittingly!) a guaranteed card.

Don’t Give Up Just Yet! 

If you’ve been through difficulties that have left you with not-so-great credit, it may be time to start rebuilding your credit rating with the help of a guaranteed credit card.
 
With a guaranteed card, you can rest easy knowing that your approval is virtually guaranteed (they wouldn’t be called “guaranteed” otherwise!) Simply apply for your card online or over the phone – no detailed credit check needed. After you receive your new guaranteed card, you’ll be able to use it like any other credit card. Whether it’s for gas or groceries, the 7-Eleven or that fancy Italian restaurant downtown, nothing beats being able to pay for things quickly and easily with a credit card!
 
A Few Things to Think About
 
Even though your approval is guaranteed, and should only take a matter of minutes, there are a few things to keep in when considering a new guaranteed credit card.
 
First of all, if you have bad credit, you might need to put down a security deposit to be eligible for your card. The amount of money you’ll need for this deposit really depends on your credit history, but can range all the way from $50 to $500 and up. This money is held by your credit card issuer as collateral, who will then give you your brand new guaranteed card. It’s that simple!
 
Another thing to keep in mind is the difference between a guaranteed credit card and a prepaid card. If your credit situation isn’t great, some people will automatically suggest a prepaid card to avoid the hassle of getting approved for a credit card. While this may work for some, a prepaid card isn’t actually a real credit card – it functions more like a debit card, as you’re simply spending your own money that you’ve put on your card. A guaranteed card, on the other hand, is the real deal – you’ll be using the funds offered by your credit card company, just as you would with a standard card. And just like with other credit cards, if you use your guaranteed card responsibly, will help improve your credit score over time.
 
Where Should I Start?
 
Before you jump into the application process, make sure you find a guaranteed card that fits your needs. Do you mind paying an annual fee? Would you rather go with a low interest rate? What other benefits does the card have?
 
While shopping around for your new card, you’ll find there are plenty of solid guaranteed cards to choose from. Take the Home Trust Secured VISA, for example – this guaranteed card is a great option if you’re looking to get back on the road to good credit. You can shop online, over the phone, or in person – every time you make a purchases, then pay off your balance before it’s due, you’ll be one step closer to a better credit score. And every month, your payment history will be reported to Canada’s major credit bureaus.
 
If you’d rather not have to pay an annual fee for your guaranteed card, why not check out the Home Trust Secured No-Fee VISA? The only difference between this card and the previous one (besides the benefit of no annual fee!) is that this no fee VISA has a somewhat higher interest rate of 19.99%.

Even if you’re stuck with bad credit, doesn’t mean you should be stuck without a credit card. Get back on track with a guaranteed credit card, and get back to paying with plastic! 

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