#guaranteed credit card
What is a guaranteed credit card and how do I get one in the UK?
If you are wondering just exactly what is a guaranteed credit card, then the answer to your question can be found below. A number of companies in the UK now offer this type of credit card and applying for one in the country is very simple and it does bring a number of benefits with it.
The first thing you should know about a guaranteed credit card is that clearly you are going to be accepted for it should you apply. This makes it the ideal solution for people who have had some previous problems with their credit rating and who would normally be turned down by the usual providers. The kind of people who normally apply for this type of card include those who have CCJs, been bankrupt, and perhaps in arrears with other payments including mortgages all of which are going to leave a stain on their credit history.
How is it any different to a normal credit card?
You will tend to find that the credit limit is going to be vastly reduced with this guaranteed version and they will also come with a higher interest rate than you would normally be paying. Both are a direct result of them viewing you as being a higher risk in regard to missing payments so you need to pay for the honour of being given the card. Apart from the limits and charges you will also tend to find that there are not the same introductory periods and special offers available than you tend to see advertised for normal credit cards.
How does it work?
The card itself actually works in exactly the same way as a normal credit card, which means you are free to use it both online as well as offline and make purchases. The cards are available with both Mastercard as well as Visa and to the shop you are using it in they look exactly the same as the usual cards. You will also be given a pin number and will be able to withdraw cash from a cash machine should you wish to do so.
How do I apply?
In order to apply you can normally do it online by completing the relevant form for the card you are interested in using. One thing you must do in advance; however, is to examine the small print to see if you are happy with the charges and also if they have any fees associated with the card. Do be aware that some will charge, but do not send money without the guarantee that you are going to get the card as these offers tend to be rather suspect and an actual credit card company will not just take your money and run.
So if you have indeed been wondering about exactly what is a guaranteed credit card, then you should now hopefully have a much better understanding of the item than you did before. They are ideal for people with a poor credit history and offer the chance to use a credit card as normal. Finally, it is worth adding that if you pay your bills on time, then they can help you to repair your credit rating so you can see that a guaranteed credit card is certainly not the end of the world.