Easy approval credit cards are a type of financing option for individuals who have a blemished credit report or less-than-perfect credit. Financial institutions which issue the cards are more lenient when it comes to the approval or credit checking process. In some cases, factors such as time on the job, amount of income, history with local utility companies, and a stable residence are good enough to gain approval. In other cases, easy approval credit cards may be issued regardless of these factors or based strictly on the ability to repay any debts.
Easy approval credit cards tend to come at a price for all applicants in comparison to traditional credit cards which are more difficult to acquire. Many of these cards have fees such as account setup fees, and most also include annual fees. Generally speaking, easy approval credit cards have varying interest rates, low credit limits, and strict guidelines for repayment. Few of these cards have low introductory APR's, so you will jump feet first into whatever interest rate you are assigned. Balance transfers are typically not allowed, and those cards that do allow it will likely charge a hefty fee for the privilege.
On the other hand, most easy approval credit cards will report to all three major credit bureaus when you make your payment in full and on time. The great news is that even if you have experienced an unexpected downturn in your finances or ability to keep up with existing credit accounts, these cards will give you a second chance while helping you to rebuild your credit rating.
If you handle living a conservative financial lifestyle for awhile as you rebuild your credit, then one of the easy approval credit cards may be your ticket to financial freedom. It is very important to remember, however, to never obtain one of these cards if you cannot make your payments. If you are tumbling down the financial hillside at the present moment, taking out more cards to pay off old cards or old debt is not the answer. It is a terrible mistake to assume that easy approval credit cards will keep you afloat for awhile, or that your credit could not possibly get any worse. With the higher fees and interest rates, a default will blast you back to the financial Stone Age! And don't forget the monthly credit bureau reports, which will reflect your bad money management habits even when given a second or third chance!
Easy approval credit cards represent a step in the right direction for the many of us who have pretty bad credit. These cards have a significantly lower set of standards for an applicant in order to be accepted, and are available from several issuing companies. They also have several features that, if utilized properly, can help move your credit score in the right direction.
As one would expect, though, these cards come at a cost to the applicant in comparison to other cards that are a little more challenging to acquire. Many have an 'account setup' fee, and nearly all of them have an annual fee as well. Easy approval cards typically have a low credit limit, usually in the mid to low hundreds, as well as varying interest rates. Some advertise rates as low as 9.9%, though to qualify for such an APR your credit would probably have to be pretty good, likely good enough not to need an easy approval card. Others advertise APRs as high as 19.75%.
Very few, if any, have a low introductory period with their interest rates, so you'll dive immediately into whatever APR you get assigned. There are a few easy approval cards that allow balance transfers, though most do not, and you can expect a notable balance transfer fee on the cards that do. Although you could consider the fees as a sub-prime debt consolidation cost, they can put a dent in a tight budget.
Not deterred or scared off by all that? Good. There are some upsides to easy approval cards if your credit has fallen as far and as fast as a meteor. If you can keep up with the payments and the various fees, most cards report to several credit bureaus, which means that if you can play ball, they will tell the people that can make your credit better. Go for an easy approval card if you can be a conservative spender for a while.
One thing to remember: do not, under any circumstances, get an easy approval card if you can not make payments on time. Say you're rolling down the hypothetical financial hillside, taking out credit card after credit card to pay off bills and your old cards. Your credit is already ridiculously bad, so you figure 'hey, I can get one of these cards to stay afloat a little while longer!' This is a mistake. With the higher interest rates and fees, if you default on one of these, you'll be blown back into the Stone Age by your bill. And don't forget they report to credit bureaus monthly. You see how ugly this could get.
The point I'd like to make is that easy approval cards are risky, but can be beneficial if you pay close attention and don't do anything crazy. Keep in mind if you need one, your habits with money are probably not the best, so you need to reform a little before you take one of these on. If you can stay on track for a period of time, the financial rewards of an improved credit rating will greatly offset any expenses you incur while digging yourself out of the bad credit pit.
Both Michael D. Strauss & Derek Lenehan are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Michael D. Strauss has sinced written about articles on various topics from Credit Cards, A Secured Loan and Finances. Michael writes for Card Sense, where you can read more about which are especially suitable for people with. Michael D. Strauss's top article generates over 165000 views. to your Favourites.
Derek Lenehan has sinced written about articles on various topics from Credit Cards, Bank of America and Student Credit Cards. Derek Lenehan is a major in Magazine Journalism at Kent State University. He is also a lead .. Derek Lenehan's top article generates over 14800 views. to your Favourites.