Guaranteed
Credit Cards
A
guaranteed credit card allows people
with less than perfect credit the opportunity
to rebuild their credit. Sometimes getting
behind on bills is due to unexpected
health issues, divorce, layoff, and
a number of other reasons. With a guaranteed
credit card, you can reestablish your
credit, helping you with your future.
Guaranteed
credit cards work differently but in
general, you have two basic options.
The first is that you will be given
a very low credit line, perhaps of $100.
When you charge something on that guaranteed
credit card, and you pay your payment
in full and on time, within a few months,
your credit line will be increased.
Before long, you will have a $1,000
credit line that reports to the three
major reporting agencies, showing that
you pay on time, thus rebuilding credit.
The other option is that you start by
depositing a certain amount of money
and draw from that dollar amount. In
this case, the guaranteed credit card
acts almost like a bank that lends you
money when needed, based on the amount
you have deposited. Again, over time,
the guaranteed credit card will increase
the credit limit and if paid on time,
you are reported as good credit. Some
guaranteed credit cards will also match
your deposit. Therefore, if you deposit
$250, they will match $250, giving you
a credit line of $500. It takes time
to rebuild credit but the guaranteed
credit card is a great way to get started.
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