Instant Approval Credit Cards are a great way to rebuild bad credit. In Australia there aren’t many credit card options for those who currently have bad credit. Although this is an alternative, it’s important to do your research before applying. There are many factors that should be considered such as interest rates, annual fees, and your credit score.
What are Instant Approval Credit Cards?
Instant Approval Credit Cards are exactly what you think they are. Instant Approval Credit Cards are typically offered online only because of its quick response time. Applying for this type of credit card will take as long as five minutes with a response time as fast as 60 seconds. Simple and convenient right? Since the response time is practically instant, applicants shouldn’t assume that results will be great. Instant Approval Credit Cards will still run a credit check during the process. Certain criteria such as income, employment, and repayment history will be reported. Let’s discuss in detail what applicants should be considering before applying for an Instant Approval Credit Card.
What Do You Need To Consider Before Applying?
Instant Approval Credit Cards a great option for those with bad credit, but before you apply there are a few things you should research. It’s important you do research according to your needs and current credit situation. Since Instant Approval Credit Cards have an instant response time, there is no room for negotiation, especially for those with bad credit.
The following are what should be considered while researching Instant Approval Credit Cards:
- Credit Score: As an applicant, it’s important to know your current credit score. Your credit score will be the deciding factor of the interest rate you receive and the credit limit you receive. If you have good credit, there’s a good chance that you will have lower interest rate and a higher spending limit. On the other hand, if you have bad credit, you should expect a higher interest rate and lower spending limit.
- Interest Rates: It’s important to understand the interest rates being offered when your balanced is not paid off. If you have bad credit, Instant Approval Credit Cards will typically charge higher interest rates, so it’s best to pay off your balance immediately. Most cards will offer 0% interest on the first 12-15 months for balance transfers. Having this benefit gives you an advantage on paying off any balance transfers until the interest rates are applied to your repayment.
- Annual Fees: Some Interest Approval Credit Cards require no annual membership fees while others do. If you plan on keeping using your card long term, be sure to understand what annual fees are required. For many applicants, annual membership fees may or may not be a concern.
Our Top 3 Picks For Instant Approval Credit Cards:
- ANZ Low Rate Credit Card This one is a highly recommended card as it offers a low purchase interest rate of 12.49% and 15 months of no balance transfer interest rates. It’s also a great option since it has a low minimum income requirement, making it easier to be approved. However, this card does not offer any exciting offers and programs aside from its low interest rate. This option is great for those who have outstanding debt with the option of making a balance transfer with 15 months of no interest.
- Citi Clear Platinum Credit Card The Citi Clear Platinum is another great option with a low purchase interest rate of 12.99% and 14 months of no balance transfer interest rates. However, there is no annual membership fee required for the first year and becomes $99 thereafter. This card does come with a range of complimentary platinum insurance covers and benefits setting it apart from other options.
- ANZ First Credit Card The ANZ First Credit Card is highly recommended for those who have bad credit and currently working on existing debt. Since this card is mostly for those who have bad credit, the purchase interest rate is high at 19.74%. What makes this a great option is the low annual membership fee of $30 and 0% balance transfer interest rate for the first 18 months. With 18 months of interest rate on balance transfers, those who are struggling to pay off debt can now clear their balance month to month without accruing additional interest. This will allow you to rebuild your credit without the worry of accruing interest on your debt.
Having bad credit isn’t the end of the world. Instant Approval Credit Cards can help you rebuild your credit and is great option if you’re having a hard time being approved for a credit card. With a quick application process and instant response time, this is convenient for applicants. With so many options, be sure to research all your options that best fits your needs.
Resources:
1. https://www.creditcard.com.au/guaranteed-approval-for-credit-cards/
2. https://www.finder.com.au/credit-cards/instant-approval-credit-cards
