Chase Credit Cards: What Makes Instant Approval A Good Idea

There is a commonly-held idea that a credit card is trouble when it is placed in the hands of someone with a bad credit history. The temptation to max the card would surely be too much, and financial state of the cardholder would only worsen. But when seeking Chase credit cards, bad credit borrowers need not worry about such prejudice.

In fact, rather than closing the door on credit card applicants with poor credit scores, they have instead opened the door. Through an instant approval program, those who can match the basic criteria can now be granted cards that other banks would surely refuse them.

But why has Chase Bank - as well as a small group of other lending institutions, like Bank of America - taken the bold decision to ignore credit histories? And how can applicants expect to get affordable credit cards under these circumstances?

Instant Approval and How It Works

In truth, the concept of instant approval is not something that most lenders would be willing to embrace. After all, risk assessment is a crucial element of loan and credit card applications. The availability of Chase credit cards on this program, however, is based on their knowledge of a market that is filled will honest borrowers who have seen their credit ratings plummet for reasons beyond their control.

The idea of the instant approval program is to encourage the economy and to provide those with low scores with every opportunity to rebuild their credit status. So, by providing credit cards to those who qualify, they get a chance to show how disciplined they can be.

However, the program is no good if applicants are not given affordable credit cards. For that reason, credit limits on these cards are kept low. The rest is down to sound card management, and disciplined card usage by the cardholder.

How Cardholders Benefit

Just as with all credit cards, there is a range of incentives and discount schemes on offer to those who secure a Chase credit card through the approval program. The typical incentive is the introductory offer, which provides a 0% APR and no annual fees for the first 6 months. But there are more to enjoy too.

For example, there are 0% charges on purchases and balance transfers for that introductory period too, though these do change dramatically once the period comes to an end. Typically, APR becomes 14.99% to 19.99% depending on the card issuer.

Of course, the chief benefit of the instant approval program is that the applicants can get approval with the minimum of trouble. All they need to do is have a reliable source of income with a full-time job held for at least 6 months. Then these affordable credit cards are within reach.

Applying a Mature Attitude

The fact that Chase credit cards are available to bad credit borrowers is something of a blessing for that niche, but even Chase will admit that making the most of the opportunity is down to the cardholder. The chance of rebuild their credit rating can be ruined by overspending, not paying the credit card bill on time and showing little discipline.

The attitude of the cardholder should be mature, and it is hoped that the instant approval program kicks off a new lease of financial life for cardholders. Some key rules worth making include using the card for bill payment purposes, not for personal, shopping or entertainment purposes.

Once this rule is adhered to, the card becomes a truly affordable credit card, and the credit score increases steadily.

How Chase Credit Cards For Students Can Ease College Finance Worries

Students are traditionally associated with poor finances and poor levels of responsibility, but this stereotype is not altogether accurate. It is a huge endorsement when one of the major banks in the country offers credit cards to college-goers. In fact, issuing specially packaged Chase credit cards for students shows just how valuable college-goers are seen as customers.

At first glance, it may seem that Chase Bank is taking on quite a risk, and while there certainly is an element of risk, the move itself is rooted on sound marketing. It is a viable student financing option, allowing them to pay bills and buy essential supplies while also establishing a relationship with professionals of the future.

And it can be argued that, while this new relationship arises more from marketing than a sense of care, getting a Chase credit card does provide young people with a chance to master the skills required to properly manage a credit card and avoid financial hardships.

VISA and MasterCard Options

Of course, there is a variety of Chase credit cards for students, with the right one clearly dependent on individual budgets. Provided through VISA or MasterCard, they come with a range of incentives and reward schemes that actually help to lower the cost of living while in college.

VISA, for example, are offering two kinds: the Student Free Cash Card; and the Student Flexible Rewards Card. They are rather similar in terms of their use and credit limit, with points gathered when used that can be redeemed either through free merchandise or a cash-back scheme.

The Student Mastercard offers another student financing option, and in the process offers users a chance to build a positive credit history. As a result, cash-backs, gift vouchers and other such incentives are not as prominent. Chase credit cards do not offer any free money scheme.

Competitive Interest Rates

Paying the credit card balance is a challenge for even the most experienced cardholders, so it can be a huge task for low-income students. But, if the interest rate charges are low, then the expense in repaying these debts is not so great. By designing Chase credit cards for students, the bank is providing an opportunity to college-goers to learn this responsibility.

Of course, this student financing option comes with an introductory offer of 0% APR for the first 6 months, and a repayment term of 20 days once the bill is issued. This means students have plenty of time to get used to handling the card and its temptations.

Neither VISA nor MasterCard offer rock bottom interest rates, with a variable APR of up to 23%. When repayments are delayed, the interest rate increases by 9%, up to 32%. This may seem extremely high for Chase credit cards, but the same rule applies as for normal cards. So, the interest is avoided if the balance is paid on time.

How Students Benefit

The several reasons for offering Chase credit cards for students. From the point of view of the card issuer, they are connecting with future valuable customers. And from the point of view of the students, it means accessing another source of financing to helping them secure low-cost items through cash-back and points systems.

The points systems can vary slightly depending on the card package, but in principle are the same. With every dollar spent on a Chase credit card, points are earned that can be redeemed. A minimum 3,000 points must be gathered before any can be converted, but once that level is reached, discounts become available on purchases at department stores and supermarkets.

So, credit cards are a very useful student financing option, provided the credit card bill is paid on time, of course.