Best Credit Card Choice Easy Approval Credit Card
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An Easy Approval Credit Card Just Got Harder
For a long time, credit was easy to come by. Banks were offering no down mortgages and issuing credit cards to everyone who applied, even if they weren’t always human. But then the dam broke, and so far over 100 banks have had to close their doors. A high percent of those mortgage and cardholders did not have the ability to repay the loans or balances. The banks lost money by the, well, bank full. Credit markets are tighter now and getting an easy approval credit card is much more difficult.
For one thing, the banks need to stop the drain on their resources and then recoup some of their losses. To do that many banks that specialized in certain types of credit have tightened the requirement and in some cases closed functioning accounts. For example, cards used for small business owners that were issued by specialty banks have been curtailed to the point that many business owners had to look to elsewhere for credit.
In the past it was a simple task to get easy approval on a credit card for business. All you needed to do was provide basic information about you business and back it with your personal credit. Now, even the personal credit doesn’t quite meet the tight standards that are required for a business card.
Many of the banks are lowering their credit limits on the majority of accounts to a point that is very close to the outstanding balance. Again, this sudden change of policy effects credit ratings for consumers caught in the middle. If you have a credit limit of $10,000 and a balance of $6300, don’t be surprised if the bank reduces your credit limit to $7000 or less.
Since 30% of your credit score is made of the amount you owe against your limit (the lower percent, the higher the score), your credit score will automatically drop within any input from you. You don’t have to do anything wrong. No late payments, paying more than the minimum or reducing your balance does will not help raise your score when the banks decide to reduce their risk.
If the consumer is having difficulty with established accounts without any blemishes on their credit history, one can only imagine the problem when someone with not so stellar credit. So trying to get an easy approval credit card becomes that much more difficult.
Of course, as with any problem, there are solutions and the simplest is to take a loan out and pay off all your credit cards and use them for emergencies only. A second choice, and just as simple is to use a prepaid card funded off or your savings or checking account similar to a debit card, except use one with a rewards program attached.