Are the easiest credit cards to get necessarily the worst credit cards on the market?
The short answer is -- no. The ease of getting a credit card depends on your credit score and debt-to-income ratio. If you have good credit (above 700), steady employment history, and reasonable debt, you will have a stress-free time getting approved for a decent card (almost instantly).The whole process will take 60 seconds. Obviously, the credit line will vary depending on your age and income.
Why aren't credit cards easier to get?
As an immigrant from a third world country, I can say that the process of getting a credit card in the U.S. is disturbingly easy. Credit cards could be ubiquitously found in most Americans’ wallets and purses. In 2017, almost 200 million Americans had at least one credit card. American consumers are burdened with a whopping $1 trillion in credit card debt in mid-2017, according to the Federal Reserve consumer credit report. We are seemingly unwilling to delay pleasure. We want everything and want it now. I have lived and worked all over the globe, and this concept of living beyond your means is almost unique to the American culture.
What advice do you have for someone who's having trouble getting a credit card?
Do your homework. Know your credit score and read the guidelines of the credit card you are considering before applying. If your credit score is 540, there is no point in applying for a premium card that requires excellent credit. Being denied for a credit card will adversely impact your credit score. I use an app to monitor my credit specifics. They even alert me whenever there is a change in my credit report.
Assess your situation. Make a list of your income, expenses, savings, and debts. Evaluate your shopping and payment behavior. Be candid with yourself. Do I have a tendency not to pay my bills on time? Your credit card company will not cut you any slack. Bad payment habits begin by pinching you with more fees, higher interest rates, and lower credit scores, and, in advanced cases, can lead to the loss of a car or home, garnishment, and even bankruptcy. That’s why it is imperative to study your financial situation before even shopping for your next card.
If you are really struggling to get a credit card, it might be a good idea to do without one until you pay off some debts and/or bump up your credit score. I know cash and checks seem to be so yesterday. A debit card might be a good way to keep your spending within your means. There’s nothing wrong with that. If you think this is hard, just remember that nearly half of the world’s population (3.5 billion people) live on less than $2 a day.
Do you think credit cards will become easier or harder to get in the next 12 months?
The credit card industry is huge, and it is dominated by a handful of companies. Industry revenue in 2017 was $78 billion. Annual growth over the past 5 years has been 3.2 percent. However, it is expected to slow down over the next 5 years to 2.7 percent. More stringent regulation put in place to augment security for consumers and merchants, as well as growing popularity of mobile and digital payments are often cited for the slow down.
Forecasts suggest that consumer spending and consumer confidence will continue to grow over the next few years. The Consumer Confidence Index is looking good for 2018. Improved consumer confidence leads to an increase in the frequency and value of purchases made by consumers, positively affecting industry revenue from transactions processing. This index is linked to trends in employment, income, and surveys on economic outlook. That’s why I believe it will become even easier to get a credit card in the next 12 months.