Instant Approval Credit Cards: For an Instant Online Decision
If you look online for a credit card, you’ll find that some credit cards offer a feature known as “instant approval.” The idea of getting something so soon can be very appealing. While this type of card has many perks, it’s important to understand what’s all involved before you apply for one. Here’s the scoop on instant approval credit cards.
An Answer in less than a Minute
If you apply online for an instant approval credit card, you will usually find out in less than 60 seconds whether or not you’ve been approved for it. This is because credit card companies, when they receive your application, run a quick credit check. They then make a decision based on what they find.
In most cases, a credit card company will look at your FICO score. This is a score that is based on various factors, including your credit history and current standings. A FICO score can fall anywhere between 300 and 850. Higher scores indicate better credit.
If you’re not sure what your credit score is, you may want to check before applying for an instant approval credit card. If you know that you have good or excellent credit, you have a very good chance of getting approved for a credit card. While better credit will help you get more cards, some companies have recently issued instant approval credit cards for those with low credit scores.
After the Approval
Once a company sends you its decision, it then does a more thorough check into your credit history. This means that the answer you first receive could potentially change when the company finds out more information. That said, this rarely happens in the credit card world. If you receive an email that states you have been approved for a card, it is very unlikely that the answer will change.
After the company grants approval, your card is sent to you through the mail. It usually arrives in five to seven business days. When you receive the card, you’ll have to authorize it. Then you can use it however you want to.
Other Features
Many instant approval credit cards come with other benefits, so you’ll want to look for one that fits your lifestyle. You may be interested in low interest rates, a rewards program, or the chance to transfer a different balance to the new card. Whatever the case, be sure to consider the other features attached to the card before you apply.
In today’s fast-paced world, many consumers want to know right away whether or not they’ve been approved for a credit card. With online applications, you have the opportunity to receive an answer in less than a minute. This can help you as you shop for credit cards, and plan how you will use them.
Once you have the card, it is important to manage it wisely. Try to avoid carrying a balance whenever possible, and take advantage of any rewards offered. With a little planning, you can make your instant approval credit card last a long time.
Stephanie Andrews
http://www.articlesbase.com/finance-articles/instant-approval-credit-cards-for-an-instant-online-decision-736023.html
March 12th, 2010 at 7:50 am
do most online credit apps give instant approval?
when you apply for a credit card online from a bank, do they usually give you instant approval like a store does? Or is it normal for them to say they need to varify a few things, and then will email you their decision? I know in a store when you are told you will revieve a decision in the mail that you were denied, but is it the same for bank credit cards?
March 12th, 2010 at 12:52 pm
Usually you will not get instant approval for a credit card/espeically with the economy right now it is harder to get credit/so again because of that in most cases it won’t be instant
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March 12th, 2010 at 12:54 pm
If "instant approval" is really the only thing that interests you, go here for five pages full –
http://www.financeglobe.com/Finance/cards.shtml
and then click on "Offers Instant Approval" under the "By Features & Criteria" column.
Your basic instinct is correct: If you’re denied, the Website will tell you that you’ll receive a letter in a few days.
I specifically recommend that you avoid HSBC (also doing business as Household Bank and Orchard Bank, among other names), because they are extremely stingy with initial credit limits and credit-limit increases, and often charge high annual fees, to boot. Their customer service stinks, and their customer-service reps don’t have the power to help you with anything anyway. I have no idea why they bother to answer the phone or why customers bother to call them. I wouldn’t piss on HSBC if they were on fire.
Citi Websites (Sears and Shell Oil Company are examples of Citi credit-card Websites) have unusually stupid anti-fraud protocols. For example, if your credit report says that you live at 1234 W Main St, you’d best enter the information in the application just exactly that way. If you enter 1234 West Main Street (as I did), your application will be denied until you FAX in "proof" of your address, even though any human can see that both addresses are one and the same thing.
If your credit history is short or a bit dicey, I’d recommend that you go for a Capital One credit card. Their business model allows for riskier customers, yet they won’t screw you over with high interest rates or other predatory behavior. Don’t be dismayed if you get a low initial credit limit, since they’ll automatically enroll you in their "Credit Steps" program. You’ll get an automatic credit-limit increase 90 days after you first use the card, then another automatic increase 90 days after that. In other words, a Capital One card that started at, say, a $300 credit limit might conclude with a $750 credit limit six months from now.
A good second source for a short or dicey credit history is Bank Of America. It’s likely that they’ll enroll you in their 99/500 secured credit-card program. If you send them a check for $99, they’ll send you a secured credit card with a $500 limit. After a year, write to them and ask to "graduate" the card to an unsecured status. They’ll probably say yes, double your credit limit, and send a check for $99 back to you.
Good luck! Did I mention that you should avoid HSBC like the plague?
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