Quite a few people across the United States now find themselves dealing with credit issues. It wasn't so long ago that just about anyone and had a pulse could get approved for a credit card. Those days, for better or worse, are over. Now unsecured credit cards guaranteed approval are difficult if not impossible to find.
In order to get an unsecured card nowadays you must have a pretty strong credit history. The qualifications for being granted credit have gone up quite a bit since the recession hit us so hard. Many economists agree that it is the worst shape our economy's been in since the great recession. Having said that there are some definite options available.
Secured Credit Cards
The way secured credit cards work is that basically the cardholder deposits a certain amount of money and they then have access to a line of credit that is equal to or greater to that amount. Basically secured cards are for people that have poor credit and would like to work on improving it and for people that have no credit and would like to establish a strong credit rating.
Be sure that you read all of the terms and conditions of any offer that you may be interested in. You're going to want to identify what the fees are and make sure that you make your payments on time. The money that you initially deposit acts as collateral so as long as you pay on time, that money will not be touched.
Prepaid Credit Cards
Prepaid credit cards and debit cards are one in the same. They are linked to a checking account where you deposit money into. You will then have access to any and all funds that are available in your account. The advantage here is that you will never be charged any interest because you are not being extended credit but are rather using your own money.
While you will not be building up a credit history by using prepaid or debit cards you do enjoy many of the benefits that credit cards have to offer. They are safer than cash and more convenient than writing checks. You can also use them just about any place that processes credit card transactions.
I suspect it will be easier to get credit approval in the years ahead but in the immediate future it is still going to be rather difficult. The banks and financial institutions took a big hit during the recession. Defaults and bankruptcies are at record highs and that is very much digging into the profit margins of the issuers.
Another reason we no longer see unsecured credit cards guaranteed approval is that unemployment is quite high. There is a direct correlation between the employment rate and the credit industry. When times are good credit flows easily and when times are bad it tightens up. When all is said and done it really all comes down to basic supply and demand.