The first is a high interest rate that makes the card virtually unaffordable for many consumers. The other issue is denial. No one wants to lend to consumers with a poor credit history, which means you might not get the card you need or want. You certainly don’t need a credit card to get through life, but it does make it easier to rent a car, book a hotel room, and control your finances when you shop online. If you’re finding it difficult to find approval for a credit card thanks to your low credit score, try one of these instant approval cards specifically designed to assist consumers with challenged credit histories.
Each of these cards offers consumers a chance to learn immediately if they’ve been approved for a card. They’re all unsecured cards, which means no deposit or down payment is required. Each card carefully considers credit history and bad scores, and the final decision is made based on a number of factors. One factor is the length of time it’s been since a late payment was made, missed, or major negatives were reported.
- Credit One Bank Unsecured Platinum Visa
- Milestone Gold MasterCard
- Indigo Platinum MasterCard
- Total VISA Unsecured Credit Card
If, for example, your score is low because you lost your job two years ago and made consistently late payments on your credit accounts for six months before you were able to find a new job, you might not count yourself out. If you’ve been able to make on-time payments, chip away at your debt, and not incur any other negative reports since your new job began 18-months ago, you have a much better chance of being approved for a credit card.
What A Bad Credit Card Means
Just because you have a positive outcome when applying for an easy approval credit card with your negative credit score, you should know it won’t be an easy road to repair your credit or even use your card. Bad credit cards all come with some fine print.
- High interest rates
- Notoriously bad or non-existent rewards programs
- Low credit limits
- Expensive fees
High Interest Rates
Applying for an easy approval credit card might mean you get a new card to use, but it doesn’t mean you derive sudden financial freedom. You’ll pay very high interest rates on any outstanding balances you don’t pay in full each month. Most of these cards require bad credit customers to pay rates that are higher than the national average, and most of those rates are well above 25%.
Rewards programs are few and far between with bad credit cards. These cards won’t earn you hotel points, airline miles, or cash back. If you are able to find a bad credit card that does offer these benefits, you’ll find it’s better to apply for one of those. Rewards cards allow you to get the most bang for your buck.
Low Credit Limits
Credit limits are not high when you apply for a card that accepts bad credit consumers. Most of these cards offer limits well below $500. Most only offer a $300 initial credit line, but you won’t get to use that full $300. The high fees associated with these cards are often unaffordable. Most bad credit cards require you pay upfront fees, and they’re deducted from your available credit the moment you accept this offer and open your account. The fees are usually as high as $99, but they average around $75. Annual fees are high, interest is high, and many consumers begin with next to no available credit.
It might seem there are few benefits associated with a bad credit card, but there are some. The first is the ability to use your card, pay it off in full each month, and watch your credit history incur some positives. Many card companies even offer automatic credit limit increases to consumers who are able to make a specific number of on-time payments when their card arrives. This might allow you to apply for a card that’s not specifically for bad credit consumers after a year or two. Bad credit options are available depending on the score you’re working with, but not everyone with bad credit will be approved. These cards might offer instant approval, but not usually to anyone with a credit score of less than 600. Work on your credit, make better decisions, and apply for credit cards that won’t cost you so much.