What is a Guaranteed Credit Card?
A guaranteed credit card is a card that has attributes or incentives that can be used in replacement of the original cards in case of emergency. The way the card works card is similar to other cards. Guaranteed credit cards are an easier way to build a good credit history.
Advantages of Guaranteed Credit Cards
Guaranteed credit cards can help in case you forget to take cash along to the gas station or you want to make an unexpected purchase. In order to get a guaranteed credit cards, clients need to deposit a certain amount of money in the bank. The amount deposited depends upon you. You can make a deposit online or pay through cheques. They allow you to build your credit score, which makes it easy for you to switch to another credit card whenever you need. The card can be used anywhere at any time, just like any other credit card. You can do grocery shopping, make cosmetics, and get gas.
Disadvantages Guaranteed Credit Cards
Guaranteed credit cards can be more expensive over time. To ensure legality and the legitimate value of the card, and whether the money clients deposit is being submitted with the bureau or not, find out as much information as possible before signing up.
After reviewing the credit history of the individual, companies start to charge higher interest rates, thus encouraging clients to pay off the card. When you sign up for a guaranteed credit card, make sure you pay charges regularly so your interest rate doesn’t rise.
Helping to Solve Bankruptcy
Anyone at risk of bankruptcy should keep a guaranteed credit cards. This card has a benefit of staying with you as long as you keep your line of money deposition fixed. If all your other cards refuse you service, the guaranteed credit card will continue to be available. This way, guaranteed credit cards offer you a chance to recover from your financial crunch while you continue to maintain a healthy lifestyle.