Applying for an instant approval credit card is a fast and convenient way to receive the line of credit you need to make purchases or pay for unexpected situations. The difference between instant approval credit cards and standard credit cards is that you will receive a faster decision about the status of your application, sometimes within minutes.
Instant approval cards often advertise to applicants with bad to fair credit histories, so consumers should be wary of scams and “too good to be true” marketing ploys. If you are in the market for a credit card and have considered applying for an instant approval credit card, choose a card issuer whose online application process is brief, guarantees approval, and is secure.
The Application Process
The application process for an instant approval credit card varies from issuer to issuer. However, there are a few general application questions and approval methods that all credit card lenders use to determine an applicant’s eligibility. Initially, the card issuer will run a soft inquiry of your credit history. Once your score is received, the credit card lender will begin to verify the rest of the information on your application. If you meet the initial qualifications, you will be granted conditional approval. The final authorization of approval will come after the credit card issuer completes a thorough check of your credit history, confirm your age and identity, approves your current income, examines your job history, and verifies your address and contact information. Just be aware that instant approval does not always mean “right away” or that approval is guaranteed. Since the approval process varies by card issuers, some applicants with low credit scores or income verification issues may have to wait up to seven days for approval.
Improve Your Instant Approval Credit Card Profile
The perfect candidate for an instant-approval credit card is someone who needs immediate credit to make a purchase and who plans to pay off balance before the statement is posted. Credit industry insiders have revealed that credit card lenders know the type of customer they are looking to approve for a line of credit. Certain details like your FICO score, a credit report from the three national credit agencies, your age and address history are just some of the details that card issuers review. Other factors, which are only known to that specific lender, are fed into a computer program that is designed to identify that card lender’s ideal applicant. While you cannot change who you are or erase your past credit history, there are ways to increase your chances of getting approved for the instant approval credit card of your choice.
- Check the information in your credit file. A key reason why some applicants are denied is their files contain incorrect data, such as accounts that should have been removed from the report or written off or your marital status. There may be damaging information on your report that you can dispute.
- Input your information into a credible pre-approval site to determine your credit score and creditworthiness. This will keep you from lowering your credit score with too many hard pulls on your credit report.
- Only apply for instant approval cards that you meet the minimum criteria for. Applying to more than three credit card lenders is a red flag to them because it makes you look desperate due to a poor credit history.
- Pay your bills on time. Apartment complexes, utility companies, cable, and cell phone companies all report your payment history to one or more of the national credit agencies. A good payment history shows that you are working on building a good credit reputation.
- Do not apply for a high credit limit if you cannot afford to pay it back. Card issuers pay attention to your current income and future earning potential to determine your debt-to-income ratio.
- Manage your debt-to-limit ratio on any other credit card accounts. Card lenders pay attention to your credit utilization on your other credit card accounts.
Most secured cards will give an instant decision because their credit company requires a security deposit that will equal the line of credit. Once you get that approval, you are required most of the time to put down a deposit of $200 to $3,000 in order to get the card. This way, if you default on the card, that deposit covers most of it. You will only be responsible for paying back whatever is leftover after the security deposit has paid for the majority of the default. Helping you build your credit is important and this is a sure fire way to do it. There are major card companies that offer a secured card before they will approve you for one of their regular unsecured cards. As you are making the monthly payments you may find that there are interest payments that make this seem like a regular credit card.
Credit Cards With Processing Fees
What cards give instant approvals? Well, the next cards to do so would the ones with processing. These fees can range from $89-$99 and your card will not be mailed out to you until you pay it. You have to be careful with these cards. Not only will they take out other fees from the credit itself, but will also charge high-interest rates when making monthly payments. The credit range is usually no more than $200 to $300. Once they take the other fees from the credit line you may have only $150 to $220 left. In order to get all of the available credit, you would have all of those fees that were taken out. No, it may not seem fair with these cards, but if you are desperate to build up your credit, and do not want to go with a secured card, this is your only other option. These are cards that will report to the credit bureau. Once you have demonstrated the ability to pay your bill on time, you can get a credit limit increase or another credit card with an extra line of credit ranging from $200 to $400 on top of what you already have on the original card.
Excellent Credit Score Credit Cards
If you have excellent credit, this is where you can have plenty of flexibility. Some of these cards not only give instant approval but you will have a high limit. You can get more than one and some may or may not have an annual fee. The interest rate is definitely cheap. Plus, you will find yourself comparing best offers on these cards. With having excellent credit, you will get the best options. That could range from cash back, points, flyer miles, and other little incentives or perks. At least one of these cards are set up where you have no limit. The only danger with that is whatever purchased with the card, you have to make sure to pay that off because it will consider your minimum monthly payment. For example, if you bought a $300 purse, then your monthly payment amount is $300. You do not want to ruin your credit so be extremely cautious when signing up for no credit limit cards. You should be comparing best offers on these cards since your type of credit offers so much flexibility. Also, you need to see what cards give instant approvals on that list. You don’t want to be held in suspense over whether you were approved or not.
All Of The Cards
In truth, regardless of what type of credit card you get, you should be comparing best offers on these cards to see which one would fit you. It does not matter if you have bad credit, limited credit, fair credit, or excellent credit. Look at the interest rates to see which card will be beneficial to you. Look at all of the perks and rewards that each segment of cards has to offer. No one is left out of the equation when it comes to getting a credit card if you diligently look.
Pros and Cons of Instant Approval Credit Offers
An instant approval credit card can provide a quick financing option to pay for an emergency, especially one that authorizes cash advances with limited fees. You can use the card to build your credit or improve your credit score in a short amount of time. Making small purchases that you can pay off on time keeps your utilization rate low and demonstrates that you are financially responsible. The ability to compare offers online expedites the process of knowing what options you have. Many card issuers advertise that applicants are pre-approved in minutes, which saves time and energy.
On The Flip Side
Instant approval credit card companies know that more than half of the people who apply for their cards need a no hassle application and quick approval for a line of credit. Some of these companies resort to unscrupulous advertising techniques that prey on people with bad credit scores. If you do not do your research, you may unwittingly agree to pay high APR and maintenance fees in exchange for being instantly approved. Even though an instant approval credit card application process takes less time than a standard credit card company’s application process, be sure to take a reasonable amount of time to research their terms and conditions for borrowing. After all, the credit card company will be conducting a thorough background and credit check on you.