Are Instant Approval Credit Cards A Smart Option For Consumers?
What are instant approval credit cards?
Oftentimes, when people browse for credit card offers, there are the things that they will quickly see…
The word, “instant,” has different meanings and is not as straightforward as one might expect. The meanings will depend upon the condition of the providers.
In some cases, credit cards with a fast approval process allow people to buy things right away. That is one reason why so many department stores offer you discounts at the checkout register if you sign-up for their store card.
People can already put some charges on their cards the moment these things are issued to them. This tactic is used by a lot of online stores these days too because of its effectiveness. Customers are often tempted to buy expensive items because of the instant promotional deals.
There is no denying the psychological appeal of instant savings.
In another context, a credit card with fast approval can also mean another thing. Instant approval might also mean that people will get approvals under certain conditions.
The most common condition is contingency on a credit check.
People also have to wait for the cards to be sent to them by mail. Since instant approval credit cards have different definitions, people should really read the fine print of any card offer.
There are a few possible reasons why people want credit cards. One of the main reasons is the urgency to spend on something. It might be that people need to pay for medical bills. It might also be that they need to repair their broken vehicles right away. There are some people who simple want credit cards for their every day needs, such as food, clothes, and groceries.
People should be warned about requesting too much “credit” on instant credit cards.
Frequent requests can have a negative effect on people’s credit scores. Of course, clients will always be reminded to check their credit scores as often as possible. Even if it could be tiresome to check the scores, it is still very necessary.
One might ask if he should get instant approval credit cards or not. If he has bad credit cards, the ones with instant approval will give him a secured amount. However, banks who approve unsecured application for people might take the advantage and charge additional fees.
Getting an instant approval is not ideal if a person already has bad credit.
Nevertheless, if he has a good credit standing, then instant approval cards are recommendable when used wisely.
In order to avoid further problems in the future, people might want to be sure about the normal fees and the percentage rates. They should also check if they could use their accounts even while waiting for their cards to be delivered to them.
Compare Multiple Offers Before You Apply
One of the trickiest things to do when it comes to credit cards is to compare credit card offers. Oftentimes, people would get waves of credit card offers in their mailbox and even online. No matter what they do, these offers will still come. If a person is interested, he should not just pick any offer that he seems to like. He should take time and weight the costs. The following are some of the steps in comparing credit cards.
First, people must examine every card offer that they receive. There are different types of credit cards and each of them has a different policy to deal with. Some of them can only be used in specific areas of business. It might take a long time for people to compare credit card offers. People should read every detail that is included in the offer. Sometimes, these offers come with limitations. These limitations do not allow people to spend for certain things.
Second, people should check out the membership fee. Memberships are not that costly. However, it would not hurt a person to check out how much he has to pay. This is so that he would not be surprised in the end. Sometimes, companies will offer unsecured credit cards through their program cards.
Next, the clients must determine the interest rate of any offer. Some interest rates are very expensive and could reach as high as twenty-five percent. There will always be offers where companies will take advantage of their consumers. They should definitely be avoided if people do not want their debts to go higher.
After the interest rates have been checked, the benefits should be evaluated. This is the part where companies try to top each the offers of each other. Sometimes, they offer rebates, air miles or low interest offers. However, these things usually come with defined amounts. Again, clients should always read the terms and conditions. Offers are very beneficial especially if the consumers use them wisely and at the right time. They should determine what combination of offers best suit them.
Finally, the annual fee for the offers should be located. It usually appears on the terms and conditions of the card. There are times when companies charge their clients for carrying the credit cards. It does not matter if these clients use the cards or not.
These are the steps on how to compare credit card offers. People should follow each step so that they will get the best offers available.
How To Choose The Offer With The Best Terms
Choosing from the Best credit card offers online is a little bit difficult to do.
Everyday, thousands of people receive credit card offers in their mail. Tempting as these things maybe, it is still ideal for people to choose the right ones. There are various credit card offers to choose from. People should know all the various types of credit cards before choosing any particular one. Who knows if they find some offers that better suits them? It would be a waste if a person has invested on the wrong type of credit card. The following are the various types of credit card offers.
First, there are the standard credit cards. They are the best credit card offers online that people get. Credit is used after making transactions. The card can be used again once people have made their regular payments. They are uncomplicated and their policies are very easy to understand. These are very ideal for people who do not really want to trouble themselves with complicated policies and terms.
Second type is the premium credit card. It offers various incentives and benefits to the user. There are so many benefits that people can get from this type. Users usually get cash rewards, points, and various incentives. The only problem is that the premium credit card has numerous high fees. It also requires cardholders to comply with minimum income requirements.
The third type is the charge card. It does not have a preset spending limit. Nevertheless, people have to pay the balances in full amount regularly. Late payments will result to penalties, chard restrictions, or even cancellations.
There are also the secured credit cards. These things are very ideal for people who have bad credit history. They are also ideal for those who have not purchased cards in the past. The secured credit cards require people to place a deposit. This deposit serves as collateral in case people could not make their payments on time.
The next one is the prepaid card. This type requires the cardholder to load money to the card. Without paying a load, this card is considered useless. People will be able to make purchases depending on the balance of their cards. There is no spending limit. However, the cardholder should continue loading money onto the card so that they could use it.
If people know what the best credit card offers online are, it would not be hard for them to choose wisely. They should pick the ones that will suit their preferences and needs.
Understand The Fine Print, Especially APR & Annual Fees
Understanding the Credit card rates and fees is very important for every cardholder. What are the various rates and fees and what effect to they give on credit card users? Oftentimes, people end up spending a lot of money because they did not take the time to understand and read about these things.
Credit card rates and fees are very easy to understand.
A person who owns a credit card is subject to several types of fees. Some come with the contract while some are activated because of various conditions. The following are some of the fees that people might encounter in the future.
First, there are the late fees. They are very common. Cardholders have to deal with these if they did not pay their bills on time. The amount that people have to pay can range from about twenty to fifty dollars. This could increase especially if a person continues to delay his payment.
Second, there is the over-limit fee. This is charged when people spend more than their credit limit. This usually occurs especially if they are not aware of their balance. That is why it is very important to check the balance regularly.
Next, there are the cash-advance fees. People can get cash from their credits. Only a few credit card companies allow this and they charge fees for such transactions. The fee could be more than about four percent of the actual cash advance. Sometimes, the cash-advance fees are fixed.
Another type of fee is the annual fee. Credit card companies charge their clients annually. There is also the maintenance fee that helps people maintain their accounts.
Finally, there is the balance-transfer fee. There are times when people have to transfer their balances to other accounts. In order for that to be done, they have to incur a fee. Three percent from the balance transferred is usually charged. There is also a maximum fee that costs about seventy-five dollars.
When it comes to credit car rates and fees, people also need to know about the various rates. The following are the most common types of rates that people will encounter. The first type of rate is the Purchase APR. It is incurred for purchases that people make on their credit cards. The second type is the Balance Transfer APR. This is incurred if a person transfers his balance to another account. Finally there is the Default APR.