Instant Approval Credit Cards
Instant approval credit cards are relatively self-explanatory. Such credit cards provide immediate approval or rejection of credit card applications. In a society where everyone wants everything now, such as the one we live in, such instant gratification is very popular because the response to your application typically arrives within 10 minutes.
Often times instant approval credit cards will capitalize on the fact that you are in a rush. They may provide you with confusing terms and conditions for such credit cards. When you look more closely at the fine print, you are likely to discover that other credit cards offer much more favorable advantages. For this reason, you should always carefully compare instant approval credit cards with others.
How can I ensure that I get an instant approval credit card?
In order to get an instant approval credit card, you should know your own credit score. If you have an excellent credit score, or a score of 720 or better, you will almost certainly be eligible for an instant approval credit card. If you have a good credit score, which is from 675 to 719, you may or may not be eligible. With bad credit, instant approval credit is almost impossible, unless you opt for a secured card.
In order to learn about your credit score you should take the time to order your credit report from the three major credit-reporting bureaus each year. You may assume that you have good credit, but these reports will reassure you or open your eyes to problems. On occasion mistakes can cause a lower credit score, which can be corrected when caught.
Do not apply for an instant approval credit card if your credit has been damaged through errors. Wait until it is corrected before applying because a declined credit application will also negatively affect your credit score. Favorable credit results from making timely payments on all account, not exceeding your credit limit, and maintaining a favorable ratio of income to debt. Paying attention to such things is very useful to being approved for any form of credit.
When should you not get instant approval credit cards?
While instant approval credit cards are very convenient, they should not necessarily be your first choice in credit cards. If the terms and conditions of the credit card are not as favorable as other ones on the market, apply for the credit card that best meets your needs and wait patiently for the response. Even regular credit card issuers are relatively rapid in their responses.
If you are making an impulse decision to get a new credit card, you should not go for an instant approval credit card. Sometimes the time required to get a response on a traditional application will give you the time to rethink whether or not you actually need it.
If you already have a credit card that is maxed out, applying for an instant approval credit card is a bad idea. Even if you have good credit, the issuer will likely see the state of your current credit cards and will likely refuse your application. Any rejected applications bring your credit score down.
What should I know about instant approval credit cards?
It is important to know that many instant approval credit cards come with many strings attached. Typically, annual fees are high and set up fees may exist. Even when there is no annual fee for the first year, there is usually one for subsequent years, making this type of credit card a more costly one than many others.
Instant approval credit cards may also have servicing fees, application fees or program fees. Even their interest rates tend to be higher than comparable other credit cards. Some instant approval credit cards require you to open savings account and deposit an amount equal to your spending limit in order to secure such a credit card.
It is important to realize that often when you take out an instant approval credit card, you will be paying for the convenience for many years to come. If you can wait on the decision for your credit card, you will usually get a much more beneficial one that meets your needs. Since all credit cards you take out remain on your credit report for many years, taking them out and closing them if you are unhappy with it will also negatively affect your credit report.
Prior to taking out a new credit card, analyze why you are taking out the card. How will you use it? How have you used credit in the past?
As you answer these questions, you will uncover important information about the type of card you should choose. You may decide to wait and clean up your credit before getting a new credit card. Know what you want in a credit card before you start looking for one. If you need a credit card now, the instant approval credit card may be the way to go.