Platinum Guaranteed Credit Card - How Unsecured is It?
Typically, what bad credit consumers
are finding online when they search for an instant
approval or guaranteed platinum credit card, are "Shopping"
cards. Unknowingly, many of these consumers apply
thinking they are getting a true-to-life platinum
credit card, because they are being marketed as a
"Platinum Unsecured Credit Card". In actuality, these
cards offer an "Unsecured line of credit".
What's the difference?
An unsecured line of credit is the ability
to make purchases on credit, and to re-pay over time.
Sounds just like a typical credit card, right? Wrong.
The difference is that the issuer allows purchases
only from a select vendor(s), either from an online
resource or through an offline catalog.
While this type of credit card offers
the ability to make purchases on credit like a typical
credit card, it can't be used for making purchases
at local retail stores, restaurants, nor to book airline
or motel reservations. And it certainly doesn't offer
any type of balance transfer from existing credit
cards, nor cash back or rewards as offered by major
platinum credit card issuers.
So why are shopping cards being marketed
as platinum credit cards? Mainly because they offer
a high unsecured line of credit, like those major
platinum credit card issuers offer to new members
with a fair credit rating. For example, the USA Platinum
Plus shopping card offers a $7,500 unsecured line
of credit, whereas typical unsecured credit cards
(the type that allows purchases anywhere the card
is accepted), offer a limited credit line. When compared
to the Rewards660 Card; an unsecured credit card for
people with troubled credit, it offers only an initial
$250 unsecured credit line.
The benefits of a platinum shopping
credit card?
If you have bad credit, such as late
payments, bankruptcy, or no credit score, it's not
likely you'll get approved for a platinum credit card
from major issuers such as Discover, American Express
and Chase. But a shopping card accepts most anyone
with no credit check. And although it doesn't offer
the perks such as frequent flyer miles or cash back,
some guaranteed platinum credit card issuers offer
other rewards, such as free merchandise when you accept
the card. You can't use the card for purchases beyond
those allowed, nonetheless you do receive an unsecured
line of credit to make purchases from the issuer's
vendor(s). This can be helpful, particularly during
times when you need credit but can't get it, like
during Christmas or to buy birthday gifts. Also, many
of these cards will report your timely payments to
a major credit bureau to help you improve your credit
score so one day you may qualify for a true-to-life
platinum credit card.
As with any online application, applicants
should read the full Terms and Disclosure before applying,
so they will know exactly what is being offered, plus
any fees that may be charged.
Source: Toni Phelps, Credit Federal.
For more information about platinum credit cards,
visit http://www.CreditFederal.com
