Oh, one of those... You are quite correct; they are rubbish. They have a very basic converter built into the USB plug body, and those all have some major limitations. What you need is a proper interface to plug your guitar into, and you'll find that things work a lot better.
Nothing to do with USB cables or anything like that - you need to increase the size of the record buffer. This is in Edit>Preferences>Audio Hardware and depending on what driver you're using, it might be called Latency, but it's essentially the same thing; you need a higher setting.