http://www.financearticles.net/the-disadvantages-of-an-instant-approval-card
Waiting for a credit card can be a strenuous process and troublesome to the person who submitted the application. But I don't think instant approval credit cards are a correct solution to this problem. This article reveals the problems behind "instant approval" credit cards, citing that it is very difficult for someone to actually get a credit card instantly.
Focusing on college students twists this an interesting way. I think that the demands given by this article can help keep college students responsible with their money, teaching them some economic ways to succeed and making sure they really do read the "fine print" when applying for a credit card.
I agree with you, Mike. I think that instant approval credit cards are detrimental to society as a whole. I know that If I was able to receive instant access to a credit card I might be in serious financial trouble through buying meaningless objects with money that isn't really mine. This article reminds me of a time when I was convinced to apply for a credit card by an attractive employee at Kay Jewelers. I was quickly denied the card after a review of my credit history which was non existent at the time. Also, I provided a fake social security number so that might have had something to do with it as well. Anyway, I am sure that I wouldn't have purchased anything from Kay...maybe an icy watch, who knows. But the moral of the story is I shouldn't have quick access to a credit card. Great article, Mike.
ReplyDeleteHell ya I agree with you Mike. That long strenuous process that people go through is to make sure stupid people don't get approved. You don't want 14 year old's running around buying everything they see and want at the mall. There are many people who are not responsible enough to have a credit card and these instant approval credit cards are going to damage those peoples credit score as well as like Mike L. said, damage the society as a whole. BOOM.
ReplyDeleteA huge concern with the instant approval credit cards is that people are in major debt and by just granting them credit cards can easily allow them to further slip into debt. It definitely is not helping the situation because it allows people to have an easier route to acquiring debt. Bad idea.
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