Why you should absolutely avoid those bad credit instant approval credit cards1
If your credit rating has been impacted by the economic slump, you've probably seen your mailbox getting stuffed with those offers for 'bad credit instant approval credit cards' almost every day. You're certainly not alone tens of millions of Americans have fallen victim to the vagaries of this declining economy, resulting in a once good or decent credit rating dwindling down to a poor rating. There are a myriad of reasons; perhaps you've been laid off, had a reduction in work hours or pay, experienced costly health problems or simply can't keep up with spiraling food costs. Just a few missed payments can send your credit rating way south in a hurry. You may think, Desperate times call for desperate measures, which makes you easy prey for those cleverly written 'offers' for bad credit instant approval credit cards. Along with the 'advance payday' loans, these types of offers should go straight from your mailbox into the round file. Here's why.
Think about how, several years ago, the banking industry lured millions upon millions of Americans into mortgage loans they really couldn't afford, encouraged by brokers and lenders to 'fudge' on the data on their loan applications, either inflating their real income, or convincing them to accept some of the more creative financing packages, such as the ARMs. Today, we see the disastrous results: foreclosures on these loans are at a record high. This is quite similar in nature to those solicitations for bad credit, instant approval' credit cards you now find burgeoning in your mailbox. Let's take a closer look at this latest banker's ploy.
The friendly, clever copy of the cover letter is designed to make you believe that taking them up on this offer may help you out of a tight spot. Nothing could be further from the truth. When you examine the fine print, you'll see that the APR is outrageous. Should you miss a payment, even by a day, that already hefty APR automatically goes up and you'll be assessed a substantial fine think $75 or more! There have been many documented cases of lenders, receiving a timely payment and then deferring processing the payment for a day or two, just so they can raise your APR and assess you that substantial fine. Keep in mind that only one incident like this can then eat up the rest of your credit line!
Probably the key phrase in these so-called offers for bad credit, instant approval credit cards is 'instant approval'. You already know you've got bad credit and are desperately looking for an immediate solution. Legitimate 'instant approval' credit card offers are approved only for those with an authentically near-pristine credit record.
If you've got bad credit, you need to work your way out of it the 'old fashioned' way. Sharpen your pencil and give your budget a good amount of scrutiny. Cut all unnecessary spending. If you have one or more small debts, squeeze your budget and pay them off, one by one. Try to make at least the minimum payment on existing credit cards. Consult with a non-profit debt consolidation organization to see if you can't consolidate your current debt and reduce your total monthly payments. The moral to this story? Avoid those bad credit instant approval credit cards like the plague! Good luck!