Guaranteed credit acceptance

Guaranteed credit acceptance is a process by which a person could establish or re-establish a good credit history. The credit history of a person plays a vital role in making him eligible for a loan.

Better the credit history better would be the conditions of any type of loan. A person could approach a traditional loan giving organization such as a bank, only if he is having a good credit history. Guaranteed credit acceptance is a method by which the customer would be availing the loan and paying back the loan through a guaranteed credit acceptance dealer, which in turn improves the credit history of the customer (Credit Approval Processing System (CAPS), 2007). Generally this is applied for automotive purchases.

Guaranteed credit acceptance could also be done using guaranteed acceptance credit card. It is available for a person with bad credit history, provided he is having a verifiable ID and address. Then he could apply for guaranteed credit acceptance cards. For credit card issuing, the bad credit history of the borrower is not at all a problem. Even if, a person is not having a bank account, he would be eligible to apply for the guaranteed acceptance credit card. The amount required by the customer could be invested in the card directly through shops or post office or online. Arrangements could be made in such a way that the income or salary of customer directly goes into this account. As and when the customer wants money, he could avail it from an ATM counter suited for the card. The only fee involved is the fee of the ATM counter (Guaranteed Acceptance Credit Cards, 2007).

Whether, it is through a dealer or through credit card, a guaranteed credit acceptance would enable a person to create a good credit history, so that he could go in for loans in a bank, where the interest rate would be much less compared to a private lender. It also enables the customer to have a carefree life without having to think of money.

References:-

Guaranteed Acceptance Credit Cards (2007) [online] Available at: http://www.creditsolutions4all.co.uk/guaranteed-acceptance-credit-cards.htm (accessed on 15-11-07)
Credit Approval Processing System (CAPS) (2007) [online] Available at: http://www.creditacceptance.com/ (accessed on 15-11-07).