- 1 Commitment to Solving Credit Score Problems Is the First Step to Good Credit
- 1.1 Answering the Question of How Can One Raise His Credit Score within a Time Frame of Six Months
- 1.2 How to get personal loans for people with bad credit
- 1.3 What property can I keep after a chapter 7 bankruptcy?
- 2 Top Credit Cards for Bad Credit In Canada – Unsecured & Secured Credit Card Options
- 2.0.1 IMPORTANT NOTICE! Affirm Financial Services has temporarily suspended issuing new credit cards. This is the message showing on their website:
- 3 Instant Approval Credit Cards For Bad Credit | 2017 Guide | How to Get Instant Credit Card Approval with Secured Credit Cards
Commitment to Solving Credit Score Problems Is the First Step to Good Credit
It is always a good idea to keep your credit rating in good standing. It is always a wise idea to consider the pluses of good credit before spending on items that are considered non-essentials. Bills from credit card purchases do not dissipate. Many of us wish that these bills might disappear, but they will not disappear. These bills have to be paid and rightfully so. Paying the bills on a timely basis ensures a good credit rating. Paying the bills on time ensures the ability to have a good or better credit rating, and it ensures the access to borrowing additional funds when needed.
Answering the Question of How Can One Raise His Credit Score within a Time Frame of Six Months
- One of the first steps in improving the credit rating is to access what the actual credit scores are. Finding the assigned credit score is easy. One way of doing this is to access the particular assigned credit score on line on a program that offers the service for free.
- Next one has to access one of the major credit card score keepers. There are three major credit card score keepers. One is the Equifax Company. Another credit score keeper, which is connected to companies that have reported information into systems about financial credit payments, is the Experian Company. The third major credit card company that knows your past credit rating and history of company’s reports on payments and also rates current accessibility to credit is the Transunion Company. These credit bureaus as such receive information from mortgage companies that currently have agreements for financial payments. These three credit reporting bureaus receive information on payments for auto loans, payments on credit card bills, payments for bills for medical care from hospitals, payments for doctors, and any additional bills for services that were needed and were paid for with credit and not paid for with cash.
Raising Credit Scores Can Be Accomplished and Following These Suggested Ideas Will Be Helpful
- The first thing to do in this quest for good credit score standing is to be determined to improve your credit rating.
- The second thing that one should do is to contact all three main credit card bureaus and see if you can advise them of any inconsistencies that would be in your favor.
- The third thing to keep in mind is to always make the payments to bills on time. If you cannot do this, contact the credit company and make at least a partial payment.
- The fourth thing to do is consider making all purchases with cash or with debit cards. If one is able to pay more than the minimum payment, then pay more of the principal of the loan.
- The fifth thing that you should do is to consolidate as many of the loans as possible. Work on it.
Higher education continues to grow in expense, such that an elitist class of people can only afford to pay for it outright. The rest of the population has to turn to financial aid packages, which regularly include federal Stafford student loans. These loans take up the bulk of a lot of financial aid packages and make it possible for everyone to get a higher education degree. There are a couple of different Stafford loans but only one way to apply for them.
A federal subsidized Stafford loan means that the federal government pays the interest on your student loan while you are in school at least half time, carrying eight to twelve credits, depending on the institution of higher learning which you attend. Unsubsidized Stafford loans accumulate the interest regardless of whether or not you are in school, thereby compounding the amount you owe to a greater degree and sum by the time you have graduated and finished your degree. Obviously then, you would want to apply for direct Stafford loan that’s subsidized first, and unsubsidized second or last depending on what else you can get in your financial aid package.
Every year starting in February, college students can go online to FAFSA.gov to fill out their applications for the following school year’s financial aid package. The FAFSA, or Federal Application For Student Aid, is a long and lengthy application when first filled out, but gets easier every year as long as nothing changes in income, assets or other monetary items that would affect aid or the receiving thereof. Students, if under a certain age and still technically under their parents’ charge, would have their parents fill it out as it is based on the parents’ income tax forms from the previous year and their fiscal picture. If the student is married or independent of their parents’ home and can provide proof of such, or if they are a non-traditional older student, parents’ income and taxes are no longer necessary to the application. It then becomes the student’s responsibility to show proof of need and income and any tax forms they had filed for the previous year. Once complete and FAFSA has received accurate documentation, it takes a few months without corrections to develop an offering of a financial aid package, and the student has to check on the form that they are interested in federal Stafford student loans.
Once a student has finished their degree and graduated, the student loan grace period is two months. Two months are given to everyone to find a job and start paying the loans back. At this point and time the interest will start to accrue unless you have also chosen unsubsidized Stafford loans, which, if you remember, the interest has been accruing all along. If you find that you can not pay your loans back because of financial hardship or can’t find a job in your field, there is such a thing as a Stafford loan forgiveness program. This route isn’t for everyone; it usually involves extremely stressful and potentially dangerous service in areas of the country or globally where poverty and crime rates are high, even among young adults and teens. For example, taking a job as a teacher in the roughest neighborhood in Harlem or Milwaukee and serving there on staff for x amount of years, the federal government will take note of your service (you have to notify them that you’ve taken the position, of course!) and completely excuse your loan. If you don’t mind this work and want to make a difference in such difficult communities, then this might be the perfect way for you to get your education for “free”. There is also an enrollment application for this program in most states, and it can be downloaded from the government’s financial aid website or you can get a copy from the college financial aid office. Don’t do this though, until you’re certain you have a job that qualifies for forgiveness.
The Federal Student Loan Support phone line is: (800) 557-7394.
For first time applicants looking to build credit on credit cards, there are ten credit cards that stand head and shoulders above the pack. If you’re a first time credit card holder, your credit card is the number one step to building a payment record. Your credit score may or may not qualify you for car loans, mortgage or lines of credit. And it will determine the rate of interest you’re charged if you apply for and receive financing of any kind.
The good news is that changes in credit card laws have been passed with the intent of protecting you and others from rogue lending practices. However, it’s up to each individual to make sure their credit file indicates to lenders they are a good or reasonable risk when applying for a loan. Remember to pay all of your bills and expenses on time. All it takes is one or more late payments to lower your credit score.
The following credit cards, which include prepaid debit cards, are great for people with no credit or a limited credit history. It allows them to build credit on credit cards they choose. Federal laws also protect predatory lending practices to people under 21 unless the card applicant can show he or she has the ability to repay.
The following ten credit cards are recommended for first time applicants:
- Applied Bank Secured Visa Credit Card – This credit card comes with a moderate price tag. But balance transfers are not allowed and there are redeemable awards for air travel and roadside assistance. There’s also a relatively high APR and is available to anyone regardless of credit standing.
- First Premier Bank Gold Credit Card – Moderately priced and prohibits balance transfers. Redeemable awards include air travel, cash back and roadside assistance.
- Capital One Cash Rewards for Newcomers – This card helps anyone new to the U.S. establish credit and earn cash back in the process.
- Capital One Platinum Credit Card – There is no first-year annual fee. Personalize your image and get spending notifications through text alerts.
- Prepaid Visa Pink Diamond RushCard – Guaranteed approval and free direct deposit. Use the card to pay bills, rent or write personal checks. Transfer money to other cards.
- Capital One Cash Rewards Average Credit – Cardholders receive a 50% bonus on cash back earned every year. Cash rewards never expire.
- Capital One Secured Master Card – No application or processing fess required and offers a credit line up to $3000. This is card is accepted a millions of locations around the world. Card holders can also track their own purchases.
- Orchard Bank Visa – Accepted a millions of locations worldwide and reports to three major credit bureaus. Check your account information with ease and get reminded of payments by text messages.
- Prepaid Visa Black Diamond Rush Card – Guaranteed approval with no credit check. Utilize free deposit and change your fee plan whenever it suits you. Card owners can pay bills and write personal checks. It also offers card-to-card balance transfers.
- Prepaid Visa Purple Diamond Rush Card – No credit checks required. Applicants are 100% guaranteed approval. Cardholders can change plans whenever the need arises and there’s no fee charged on direct deposits. Use the card to make purchases and pay bills. It also comes with a free prescription card.
First time credit cardholders should make every attempt to use their card wisely. Why? Because they may have their credit card for years and every purchase and payment is recorded on their credit report and will remain there for many years.
Credit scores are checked on everything, from buying a home or renting an apartment, to everyday purchases and applying for a job. Remember to spend wisely if you’ve been approved for your first credit card. Credit penalties could affect your life for years to come.
How to get personal loans for people with bad credit
With the economy still struggling and unemployment rates fluctuating, it’s one of the worst times in history for someone with bad credit to try to get a loan of any sort. Yet, life still goes on and needs arise. If you already have bad credit, it’s never too late to start working on improving your credit rating and one effective way is to build credit on credit cards. Using credit cards for purchases and then paying the monthly payments on time or even paying them off every two months or so will work towards improving your overall credit score. A key to this is not to max-out the credit card or cards, though, as running the balance up to the hilt is just as much of a red flag as is non-payment. Sensibly handling your credit cards will show potential lenders that although you may have had an unfortunate set-back in the past, your current credit record is one of responsibly managing your debt.
Many times it is just as difficult to obtain a credit card as it is a loan when you have bad credit. There are a number of companies now who specialize in guaranteed credit cards for people with bad credit. These companies vary in how they structure their offers. Some are considered “secured” and may operate more like debit cards, having you make a deposit equal to your “limit” and then, although you have money backing your purchases, you will still make monthly payments that will build your original deposit back up. Others are more traditional, being unsecured and not requiring a deposit, but they will charge an inflated interest rate, well above the current going rate for a typical credit card.
It is easy enough to find guaranteed credit cards for people with bad credit. Email inboxes are flooded with offers almost every day of credit cards that are assured approval. You can also use the internet to search several sites that will match a credit card and its benefits and features with your credit situation. Simply fill out a short questionnaire and these sites will present you with several choices of credit cards, secured cards, and pre-paid cards. You just review the aspects of each of them and select the one that is right for you. Most times you can get an approval within minutes when you apply for a credit card using one of these sites and be on your way to re-building your credit within days.
While attempting to build credit on credit cards using guaranteed and/or secured cards is one way to go, there are also more loan agencies now than ever before that will loan to someone with bad credit. Recognizing the difficult situation that a large number of people are in, banks and credit unions are even offering “bad-credit” loans in some circumstances. It is always worth a try to contact the bank you do business with first to see what they might be able to offer by way of a loan. These types of institutions might require collateral to secure your loan, but it will at least provide an opportunity to work on your credit score. The most common types of loans that banks and credit unions offer customers with less than perfect credit are home equity lines of credit and title loans on vehicles. This gives them something tangible to fix the loan to in the event of non-payment. Aside from typical financial institutions, there are many other agencies that can be found online and locally, as well, that are willing to loan to those with bad credit. As with the credit cards, you should expect higher interest rates for lower credit scores but that may be a small price to pay to improve your credit rating.
Facing the possibility of bankruptcy is a difficult time for most people. One of the biggest questions people have when contemplating filing bankruptcy is if they can keep their assets. Different kinds of bankruptcy have different benefits and drawbacks when it comes to the debtor. One of the major advantages of filing Chapter 7 Bankruptcy is that it allows you to keep various assets that would other wise be surrendered when trying to pay off debts and filing bankruptcy. Cars and homes are two of the biggest assets that most people have.
One of them most commonly asked questions people have when facing bankruptcy is “Can I keep my vehicle if I file bankruptcy?” Under chapter 7 bankruptcy, the answer is yes in most cases. Chapter 7 bankruptcy allows that as long as the vehicle is owned by the person filing bankruptcy and is worth less than the maximum allowable value for exemption amount of the state that the person is filing bankruptcy in. Different states have different exemption laws, so it is important to find out what the laws are in your state before filling bankruptcy.
The answer becomes more complicated if you do not own the vehicle you wish to keep, either because you are still making payments on it, or because it is a leased vehicle. Laws very from state to state, but, in most cases, if the payments are current than you will be able to keep the vehicle. If you are leasing the vehicle you usually have the option of breaking your lease agreement without occurring any penalties and returning the vehicle or keeping the vehicle under the current terms.
Where your options under Chapter 7 bankruptcy law become complicated is when you are making payments on vehicle you plan to own in the future. Most states give you several options. You can keep the terms of the loan as they are, without making any changes, you can renegotiate the loan or resign the loan under what is called a reaffirmation agreement, or you can agree to pay the lender a lump sum more or less equal to the vehicles current worth, under what is known as a redemption payment. Each state has different policies, so you need to make sure that you understand the law in your state.
In any case the first thing you should do is call you lender and inform them that you are planing on filing on bankruptcy, but wish to keep your vehicle. Your lender may have certain policies for dealing with bankruptcies, and it is important to understand all of your options before proceeding.
Because the law is complicated, it is very important to consult a bankruptcy lawyer when filling for bankruptcy. Your lawyer will have more specific information concerning your case, and will able to provide you with a more specific answer about which assets you will be able to keep, and what you will have to do in order to be able to keep them.
Deciding to end a divorce is just as important has deciding to get married, and neither choice should be entered into likely. While no one wants to get a divorce the inevitable is bound to happen. The quickest way to recover is to accept what is about to happen and move on. However, this theory may be a little difficult to do when children are involved. The most important factor to consider in an uncontested divorce is the children and what effect a divorce will have on their well being. They too must learn to accept and cope with a one parent home. However, there are some steps that parents can take to help make the process easier.
An uncontested divorce can work to the advantage of most couples where children are involved. They have the freedom to sat down and come to an agreement on issues that will ultimately impact their present and future well being. The court may recommend that the children involved participate in my parent is getting a divorce class. This will help them realize that they are not the blame for the separation, and they still have both parents, but in separate homes.
Separate homes usually mean custody issues. Both parents will more than likely share custody, and in some cases only one parent is given full custody of the children. If this is the case the other parent is required to pay child support. This amount can be reached outside of the courtroom by both parties or inside the courtroom by a judge. High debt and uncontested divorce is a workable plan that can work in the best interest of the entire family. If high debts need to be resolved, work out a payment plan with the creditor. Agree to pay a reasonable amount in child support. If the court insists on insuring the children, placing them on the job’s insurance plans are a lot cheaper.
Sell off as much property as necessary; if it is of no use to neither party, take the money and pay off debts that could affect both parties in the near ahead. Eliminating financial debt before getting an uncontested divorce means that children can look forward to financial support in a timely manner and both parties are practically debt free. Most couples will have already worked this part out before they enter the courtroom and ask for an uncontested divorce with children.
There can be a large variance in the cost of an uncontested divorce. Attorneys are known to advertise anywhere from $90 to $1000. Generally the lower rates are for a very specific uncomplicated case and will go up in large increments if children or other complications arise. Getting an attorney that offers a flat fee for uncontested divorce is your best bet. The court fees for filing your divorce will vary from state to state. It is generally around $250.00 to file for a divorce with the court. You will need to check with your local courthouse for exact filing fees in your area. If uncontested divorce is at all possible it is in the best interest of everyone involved and in the long run will save you a bundle of money.
What property can I keep after a chapter 7 bankruptcy?
Deciding to file for bankruptcy is a difficult decision that most people try and avoid if at all possible, especially since filing stays on one’s credit report for 10 years. But for many circumstances force their hands and bankruptcy becomes inevitible. Under Chapter 13 Bankruptcy, debtors pay back debts over an extended period of time, but when that isn’t possible some will file for Chapter 7 Bankruptcy which will cancel many of their debts.
However, just because someone has filed a Chapter 7 Bankruptcy doesn’t mean they can live in luxury. Filing a Chapter 7 Bankruptcy is a humbling experience, one that requires many to scale back to the necessities, take inventory of their possesions and prioritize their lives. Excessive posessions will be liquidated in order to pay creditors at least a portion of what is owed.
But of course, no one expects people to live with absolutely nothing. For this reason there are limits on what property one is allowed to keep. Many people find these limits quite reasonable, and well worth the peace of mind that comes from no more collection calls.
Exact values of what is allowed can vary somewhat depending on what state a Chapter 7 Bankruptcy is filed in.
- The first thing you get to keep is $20,200 of value in your residence. This means those with a large amount of equity in a home, may need to refinance to pay off some bills before being condisered. However, for those who rent, this should not be a factor.
- You are also allowed to keep your vehicle valued up to $3225. This is the Market Value, minus any loans against it. Household items values at up to $10,775 are also considered exempt, except no individual item can be valued at more than $525. Jewlery and heirlooms up to $1225 may be kept. Tools of the trade, valued to $1850 may be kept, this includes anything which is deemed necessary to earn one’s livelihood.
- You may also continue to receive a reasonable amount of alimony or child support, and public benefits, such as unemployment, worker’s compensation, Veteran’s benefits or social security are also safe. Retirement accounts, such as 401Ks, should also be left in tact.
- In addition to liquidating assets down to these levels, filers of Chapter 7 backruptcy must also meet median income guidelines, and complete credit counseling before filing.
Top Credit Cards for Bad Credit In Canada – Unsecured & Secured Credit Card Options
For people with impaired or no credit history, perhaps there’s no quicker or more effective way of re-establishing their credit than with a credit card. Luckily, even if you’re currently in bankruptcy, consumer proposal or emerging from insolvency, there are a growing number of credit cards for bad credit in Canada.
Canadians can now choose from a host of different types of credit cards to help them establish, re-establish or repair their credit histories and credit scores. Whether you’re looking for an unsecured, guaranteed approval, or secured credit card, there’s an option that’s best for you.
With the credit cards below, you can enjoy all the benefits of having a credit card, even if you have no credit history, or have had credit problems in the past. These credit cards for bad credit will help you rebuild or establish a strong credit rating, while giving you the convenience and security of a credit card – make purchases online or over the phone and book travel reservations easily and securely.
Top No Annual Fee Secured Credit Card For Bad Credit In Canada:
Click Here To Apply
A no annual fee secured credit card requires a security deposit but does not charge an annual fee. Your credit limit is then set at the amount of the deposit. You can put down as little as $500, or as much as $25,000, depending on the card. If you decide to cancel your secured card, you can just pay off your outstanding balance, and you’ll get your security deposit back. Because the card is secured, almost everybody is approved. The only downside for some, is that it does require a bank account.
Why It’s a Winner: The Home Trust Secured Visa, is a great option for those not approved for an unsecured credit card, looking to re-build or establish credit through a secured credit card but don’t want to pay an annual fee.
While it does require a minimum deposit of $500, you are guaranteed to get approved. Once approved, you can start to use it like any other credit card, and Home Trust will report your payments to both Equifax and TransUnion, helping you re-establish your credit.
It does come with a 19.99% interest rate, (but you shouldn’t be carrying a balance on a secured credit card anyways). Also, if you have any large purchases you need to make on the card, you can deposit as much as $10,000, which should give you all the flexibility to have a large enough credit line for big ticket purchases.
Top Low Interest Secured Credit Card For Bad Credit In Canada:
Click Here To Apply
Even though this is a secured credit card, some people still may carry a balance from time to time, and if you do, a low interest option is critical to keeping down your borrowing costs.
Why It’s a Winner: The People’s Trust secured credit card offers a low interest rate of 12.99% on balances, two percentage lower than the next best secured credit card.
What also makes this card unique among it’s peers, is that you can create a security deposit as low as $500 to as high as $25,000. That’s the highest deposit allowed in Canada, to our knowledge, giving you the baility to create a $25,000 line of credit and all the flexibility to spend on big ticket items to meet your individual needs.
This card is ideal if you have had credit problems and want to rebuild your credit rating, have no credit history and want to establish a good credit rating or are a discharged bankrupt.
Just be careful with the low interest rate. If you intend on carrying a balance, you’re probably better off not getting the card and using the money that you would have used for your deposit to pay for your service – interest free.
You will need a bank account to be able to apply for this secured credit card.
Top Unsecured Credit Card For Bad Credit In Canada:
The Affirm MasterCard ® Credit Card
IMPORTANT NOTICE! Affirm Financial Services has temporarily suspended issuing new credit cards. This is the message showing on their website:
“As we continue to find progressive ways to support the credit needs of Canadians, Affirm Financial Services has temporarily suspended issuing new credit cards, loans and all credit limit increases.
We are working hard to ensure that we bring you the credit products you need as soon as we can. We sincerely apologize for any inconvenience this may cause you.
Existing Affirm Mastercard customers may continue to use the card in accordance with the terms of the cardholder agreement.”
An unsecured credit card for bad credit is a card designed for those with impaired credit. However, because it is unsecured, you won’t have to put any deposit or security against the card, and you’re not required to have a bank account. It’s a great alternative if you’ve been turned down for a credit card by the banks.
The advantages of an unsecured credit card are: 1. You get a true line of credit, without having to give a security deposit. 2. Your credit history gets reported to the credit bureaus. 3. It allows you to build or re-build your credit, even if you had difficulties in the past or present – even consumer proposal or bankruptcy.
Why It’s a Winner: The Affirm MasterCard is our top ranked credit card for bad credit, because it stands alone in Canada as the only unsecured credit card for bad credit with absolutely no security deposit required. It’s a great opportunity for those who have declared bankruptcy or have been or are in consumer proposal, offering unsecured credit lines as high as $3,000.
It comes with an interest rate of 29.99% for homeowners and 34.99% for non-homeowners, comparable to a store credit card, and much lower than a pay day loan. But remember, you shouldn’t be carrying a balance anyways. The idea here is for you to use good credit habits and pay down your credit card bill every month, not just the minimum payment, on time – use automatic payments if you can’t trust yourself. Pay down your balance every month and the interest rate is irrelevant.
It does come with an annual fee of $84 per year, charged at $7 per month. Reasonable for the risk the bank is taking, and when you consider many secured credit cards also come with an annual fee. Once you’ve re-established your credit, you can apply for a no fee credit card, and avoid the annual fee altogether.
Affirm reports to both credit bureaus, Equifax and TransUnion, with every payment. Not all lenders do this. As a result, the Affirm MasterCard will help you build a positive track record of payment performance, and improve your credit history and score as quickly as possible.
READ THIS TO GET APPROVED: To help you get approved for this card, if you’ve declared bankruptcy or been in consumer proposal you should have a FICO greater than 500. If not, your FICO should be greater than 600. Your annual income should be at least $10,000. You should not have a payday loan inquiry. Nor should you have a major derogatory like a delinquency, or judgement in the last 6 months.
Instant Approval Credit Cards For Bad Credit | 2017 Guide | How to Get Instant Credit Card Approval with Secured Credit Cards
2017 Guide: How to Get Instant Approval Credit Cards for Bad Credit
It’s no secret that finding instant approval credit cards when you have bad credit can be a challenge. In fact, even finding a credit card that doesn’t have high interest and low limits can be an exercise in frustration while you’re trying to rebuild your credit.
However, it’s not impossible to get an instant decision on credit cards if you know where to look. Since you can apply for credit cards online, most of the time you can get instant approval on credit cards for bad credit.
We will show you how to prepare to shop for instant approval credit cards, what secured vs. unsecured instant credit cards are, and which instant credit cards might be right for you.
First, let’s take a closer look at the criteria companies use before approving an instant credit card: your credit score. Different companies that offer instant credit cards may have varying standards. According to Credit.com, the companies that offer credit scores do not determine what good credit vs. bad credit is — that is left up to the individual lenders.
Credit scores for both FICO® and VantageScore®, which are the two main credit scoring companies, range from 300-850. The higher your credit score is, the lower the risk a credit card company assumes as they lend you credit.
When a company issues instant approval credit cards for bad credit, however, they assume more risk. That risk is passed on to the customer in the form of higher fees and interest rates.
Even though individual companies decide which consumers to offer instant approval credit cards to, there are general ranges that can be assumed, according to Nerd Wallet:
- Excellent credit: 720+
- Good credit: 690-719
- Fair/average credit: 630-689
- Bad credit: 300-629
However, according to TheSimpleDollar.com, any score under 650 can be considered poor credit, considering that 695 is the national average. With this scale in mind, only a credit score of 760 or higher is considered excellent.
Offering instant approval credit cards for bad credit is more risky for credit card companies than instant approval credit card offers made to consumers with a long history of excellent credit. In order to make up for the risk, companies will often charge customers with bad credit higher interest rates, set lower spending limits, and only offer secured cards.
Don't Miss: High Yield Bank Accounts
Instant Approval Credit Cards: Preparing Ahead
Before you start hunting for instant approval credit cards for bad credit, you need to be prepared. The more you know, the more you will be able to make informed decisions about a credit card with instant approval and avoid falling into a situation that will cost you more in the end.
The first thing you need to do before shopping for instant approval credit cards is to find out your credit score. If you already have a credit card, there’s a good chance your score is on your monthly credit card statement. You can also check with your bank or credit union to see if they have options to check credit scores for their customers.
If you are unable to access your credit score through any of your financial insitutions, you can check online. CreditKarma.com and Credit.com are two websites that offer free credit scores. Once you know your score, you can better determine whether to apply for instant approval credit cards for bad credit, such as secured credit cards, or apply for an instant credit card approval on a traditional, unsecured card.
If your credit score is too low, you may have trouble finding an instant credit card with terms that work for you. People who don’t need an instant decision on credit cards can take some time to repair their credit by:
- Paying bills on time
- Getting current with creditors
- Reducing overall debt
Instant approval credit card offers are easier to get once your credit score goes higher. However, some consumers need instant credit card approval, in which case, the choices are more narrow.
Instant Approval Credit Cards: Secured vs. Unsecured Credit Cards
If you have poor credit, your best option may be a secured credit card. First, you need to know what an unsecured credit card is before learning how an instant credit card approval with a secured card can benefit you.
An unsecured credit card is the most common type of credit card, according to CreditCards.com. The card is not directly tied to money that the customer has deposited to secure the card, meaning they qualify for instant approval credit cards based on their good credit history and overall financial strength.
Consumers who need an instant credit card but have poor credit need to make a deposit to the lending institution issuing the card. The credit limit is usually the same amount as the deposit, which protects the company in case the borrower cannot pay. Once the deposit is made, a secured instant credit card works just like any other card.
Instant approval credit card offers for secured cards can benefit consumers who are trying to rebuild their credit. A secured credit card lender will report your payments to the credit bureaus, just like with an unsecured card. By making on-time payments, a person with poor credit can begin to see an increase in their credit score.
The downside of a secured instant credit card is that if the borrower doesn’t make the payments, they lose the deposit and their credit score is further damaged. Also, secured cards often have fees in addition to the initial deposit, which can add up quickly.
When shopping for instant approval credit cards for bad credit, an unsecured card is always more desireable but might not be attainable. As you begin your search, keep in mind that not every credit card with instant approval is created equally. Always look for the best terms you qualify for.
Instant Approval Credit Cards: What to Look for
When looking for a credit card with instant approval, you will want to select one that fits your needs. Instant approval credit cards for bad credit that are secured come with different features and benefits, just like unsecured credit cards.
In addition to putting down a deposit for your secured credit card, financial institutions often have annual fees, activation fees, and processing fees, not to mention interest rates.
Find out ahead of time which instant credit card will give you the best deal on fees and whether you can afford them in addition to the deposit.
If you’re trying to rebuild your credit by applying for instant approval credit cards for bad credit, then you will want to make sure that the card company does, in fact, report your on-time payments to the credit bureaus.
Also, you need to know whether or not the company flags your card as being secured. A flag that your instant credit card is secured might hinder you from rebuilding your score.
Most of the time, credit card issuers have a 100% ratio, meaning they will only issue a line of credit for the amount of your deposit. However, you may find an exception to that, and depending on your credit needs, it might be worth the hunt.
Some institutions who provide an instant decision on credit cards also offer interest on the deposit. This is rare, but finding a company that does is one sign of a solid issuer.
It is also important to know how long the credit card issuer will keep your deposit once you close the account. Some companies like to keep the deposit long enough—up to a few months—to ensure there aren’t additional charges to the account before they give back the deposit.
Qualifying for an Unsecured Card
When searching for instant approval credit cards, check to see how long it will take for you to qualify for an unsecured card. Not all financial institutions will turn around and offer you an unsecured card, so it’s important to know if that’s an option.
Oftentimes, an issuer will watch over a period of time to ensure you’ve made all your payments on schedule before giving you the choice to switch to an unsecured card. The time periods vary, but you can expect to make a year’s worth of payments before seeking instant approval for credit cards that are unsecured.
Instant Approval Credit Cards: 3 Cards Worth Checking
There are several instant approval credit cards for bad credit you can compare before applying, but we’ve selected just a few to get you started.
Capital One has long been a trusted name in the industry. Their secured MasterCard offers the following:
- $0 annual fee
- 24.99% variable APR
- Refundable deposit based on credit ($49, $99, $200)
- Access to a higher credit line after five months of on-time payments
- Free credit score and tools through CreditWise
The Discover it® card claims to help customers build or rebuild credit with responsible use.
- $0 annual fee
- 23.24% standard variable purchase APR
- Free FICO® score every month
- 1%-2% cash back on purchases
A Wells Fargo Secured Credit Card can help you establish a credit history with a security deposit as low as $300.
- $25 annual fee
- 19.24% APR
- Credit line is equal to your security deposit
- Access to free credit score
- Up to 5% cash advance
If you want to know how to get instant approval credit cards for bad credit via a secured card, the key is not to rush. Take the time to find your credit score, make adjustments as you can through on-time payments and paying down debt, then shop for a card that suits your needs.
Remember to check out all the features and benefits that are important to you before applying for instant approval credit cards. There are many credit card issuers out there who are willing to work with consumers who have poor credit. Resist the temptation to apply for the first instant credit card that you think you can qualify for.
After selecting a credit card with instant approval, use caution. The good thing about secured cards is that you can’t spend much more than a set amount that you’ve deposited. Therefore, you should technically be able to afford all the purchases you make on the card.
Pay the card on time, every time. You applied for instant approval credit cards for bad credit in order to rebuild your credit history. Now is the time to show the credit bureaus that you can properly manage credit. Once your credit is good, you can apply for unsecured credit cards and loans.
Taking the time to do research and find instant approval credit cards that fit your needs could mean more money tucked safely in your wallet.
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