Instant Approval Credit Cards

Whoa there hold your horses! Before we talk about anything else we have to address the bad credit situation. If you have become aware that your credit rating or credit history is bad, the first thing you should do is follow these steps in an attempt to rectify the situation. No one will loan to you if you have made no attempt to make amends for your past mistakes.

~In order to repair your credit rating you need to know exactly what your credit history says about you and the only way to do this is by looking in detail at your credit file. You can get a copy of your credit file for free from Veda Advantage via MyCreditFile which should arrive within 10 working days of receipt of your request. For a small fee you can get a copy of your file under the express request system

~Now that you have received and read through the credit report it's time to contact the lenders who have listed overdue accounts by way of either a "payment default" or a "clearout" (see*** below for definitions). Repay outstanding debt as soon as possible. Once you have done so ask that the lender update your file stating that the account was either bought up to date, paid in full or settled.

~Resolve to change your habits and never let this situation get out of hand again. Do a budget and stick to it. Get yourself organized. Set alarms and reminders in your phones and calenders, put your bills on the fridge not stuck in a drawer - to ensure that you pay your bills on time. Staying on top of due dates will make sure that no further defaults are added to your file, which will only compound your issues.

~Get in touch with your local bank manager at that bank where your salary or wages are deposited and request a meeting. Be open and honest about your credit history issues as well as the steps you have taken to repair the damage. Discuss the possibility of a secured credit card to help re-establish your credit standing.

*** Payment Default:: A payment default is an account of $100 or more that is 60 days or more overdue. For example, if you have a telephone bill of over $100, and it was due more than 60 days ago, it could be listed on your credit file as a payment default.

Payment defaults can only be included on your credit file if the credit provider has tried to recover some or all of the overdue amount. This simply means that they have asked you, either in person (including over the phone) or in writing to your last known address, to pay the outstanding amount.

A payment default stays on your credit file for five years, even when you have paid the overdue amount. The fact that an account has become overdue and then been paid becomes part of your credit history.

*** Clearout: A clearout is also sometimes called a "confirmed missing debtor".

It means that, at the time of listing the person who owes the money could not be located despite attempts to contact them.

Before you can be listed as a clearout, the credit provider must make reasonable efforts to contact you, either in person (including over the phone) or in writing your last known address, to pay the outstanding amount.

If you can't be contacted, the credit provider can immediately list the debt on your file as overdue, even if it hasn't been due for 60 days or more.

Clearouts remain on file for seven years from the date they're listed, even when you have paid the overdue amount. The fact that an account has become overdue and then been paid becomes part of your credit history.

Resources:
Understanding Money

Many people are in a place where they are needing credit with a bad credit rating. The unfortunate thing is that instant approval credit cards for bad credit are practically non existent.

Having said that, each lender has their own lending criteria with some being stricter than others so just how bad your credit file is, is definietly a factor in whether or not an instant approval credit card is likely to be approved. Your credit rating is in fact a rating created by individual lenders, not the credit reporting agency Veda Advantage as many people believe.

Instant approval credit cards are a luxury largely reserved for those with a very good to excellent credit history. Over 2 million Australians are struggling to repay debts and from 1 January 2011, due to Responsible Lending laws lending companies must ensure consumers can meet the financial terms of a loan without substantial hardship and will need new data tools to predict and help prevent hardship. One wouold expect that getting credit with a history of struggling to repay debt will be harder than ever.

Credit cards for people with bad credit are in reality limited to store cards at best and more often debit cards or secured credit cards.

Is Any Form Of Credit Available For Individuals Whose Credit History Is Bad?

While doing all you can to repair your credit rating you may find yourself in need of urgent credit. Under these circumstances if you cannot borrow from friends or family you may find that one of few options is to seek short-term, instant approval cash advance help from a payday lender. Please note that many consider these lenders to be loan sharks or scum sucking bottom dwellers and this article by no means recommends this course of action. If however it is your chosen course of action you must:

Read and understand the terms and conditions and know in advance that the interest rate is high considering the length of loan is short. If you decide that the need is imperative and take out a short term loan with a payday lender make certain you pay back the agreed amount, by way of specified repayments in the specified timeframes. Failing to do so is virtually financial suicide as this will do further damage to your credit rating and cause further delay in proving redemption.