What bad credit consumers are finding online when they search for an guaranteed platinum credit card or instant approval card, are "Shopping" cards. Many of these consumers though they are getting a true-to-life platinum credit card, because they are being marketed as a "Platinum Unsecured Credit Card". In fact, these credit cards offer an "Unsecured line of credit".
What's the difference between "Unsecured line of credit" and "Platinum Unsecured Credit Card"?
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 selected 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 instance, 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 bad 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 at all, it's not likely you'll be approved for a platinum credit card from major issuers. But a shopping card accepts anyone with no credit check. And although it doesn't offer the rewards such as flying 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). Many of these cards will report your timely payments to the major credit bureaus to help you improve your credit score so one day you may qualify for a true-to-life platinum credit card. This can be helpful, particularly during times when you need to improve your credit rating.
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.
