Instant Approval Credit Card:How availabe Is An Instant Aproval Credit Card For Bad Credit?

Instant approval credit cards for bad credit have all but disappeared since credit card companies have become wary of extending credit to consumers with less than perfect credit. In the aftermath of the sub-prime crisis, lax lending practices were outed by lenders extending both revolving and non-revolving forms of credit.

Today, both mortgage lenders and card companies are reluctant to provide credit to consumers with less than satisfactory scores. Instant approval credit cards may be unavailable to consumers with bad credit on account of the following reason:




Are Instant Approval Credit Cards for Bad Credit Still Feasible?


Instant approval credit cards for people with bad credit are not easily accessible to consumers since these cards are unsecured. In the event of the consumer failing to make good the payments on the credit card, the credit card company has no option but to contact the consumer and force the latter to make the necessary payments.

If the consumer refuses to discharge his/her obligations, the credit card company may sue the consumer and get a writ of wage garnishment. This writ will enable the company to withhold up to 25 percent of the wages of the consumer.

If the consumer's wages are already being withheld due to other garnishments, say for child support, the credit card company may find it difficult to recover the credit card debt. The other alternative may be to turn over the debt to a debt collection agency. This may, however, force the consumer to file bankruptcy.

If the consumer files Chapter 7 bankruptcy, the credit card company may be able to recover at best 50 percent of the dues since Chapter 7 absolves the consumer from discharging debts that cannot be requited. The best strategy for the credit card company is to engage in negotiations with the consumer and try to settle for a reasonable amount.



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