Easy Approval Credit Cards Are All the Rage, But Are They For You?

December 2, 2009 by Matt Douglas
Filed under Credit

Haven’t heard of easy approval credit cards? Well, as the phrase suggests, they are credit cards which are easily obtainable. Even if your application for a “standard” credit card has recently been denied, you may still be able to qualify for one of these cards.

Two companies which offer easy approval cards are First Bank of Delaware, which offers the Tribute Gold MasterCard, and Urban Trust Bank, which offers the Salute Visa card. However, by performing a quick internet search you will amass a large number of web sites which offer credit cards similar to these.

Credit cards like the Tribute Gold MasterCard and Salute Visa card are more easily obtainable because the credit score required is lower than for more “high profile” credit card companies. These easy approval credit card companies will review your credit rating, employment status, current income, and how long you have been at your present residence.

In answer to your unspoken question, this type of credit card is offered because, in light of the economy, there are many people whose credit scores have dipped below the average credit rating. As such, the “standard” credit card companies will not approve credit cards for these people, leaving a large group of people who would still like to access the freedom and spending power of a credit card. It would be folly to not provide a credit card for these people because to not do so would mean ignoring a large sector of United States’ consumers. It really is just good business. Also, people who have had no opportunity to build a credit rating, such as young people, should not be penalized for their youth.

The benefits offered for the easy approval credit card and the “standard” credit card are virutally the same. However, the easy approval credit card offers another benefit for the card holder in that the card holder can work to rebuild his or her credit score with the wise and appropriate handling of the credit card.

There is a down-side to applying for and using an easy approval credit card. Normally, these cards have higher charges and fees and additional costs such as monthly fees, one-time setup charges, annual fees, as well as higher annual percentage rates (APRs).

You should only apply for an easy approval credit card if you have been denied a “standard” credit card recently. It is imperative that you be sure you will be able to pay the monthly minimum due every month and on time.

A secured credit card may be an option for you if you feel that you will be unable to keep up with the payments of an easy approval credit card. One benefit of secured credit cards is that you may only spend the amount which you have “deposited” for use. In other words, you deposit money to be loaded onto the card and that, then, becomes your credit limit.

In summary, if you know that you have a good credit score, it is probably a better idea to apply for a “standard” credit card in order to avoid the significant charges associated with these more easily obtainable credit cards. Adversely, if you have been turned down for a “standard” credit card in the past six months, it is probably wise to apply for one of the easy approval credit cards. Whichever you decide to apply for, be sure that you will be able to make the payments and make them on time.

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