Many credit card companies advertise instant approval to attract more potential cardholders.
For those who are interested in owning a credit card for the first time, the promise of getting “instantly approved” can be very appealing.
However, before you go and submit that online application, consider the following the pointers that you need to know about credit cards with instant approval.
The Name Can Be Misleading
Many people have the wrong notion that instant approval credit cards are for everyone and that it involves virtually no waiting time at all. There is a circulating rumor that you can get this credit card and use it on the same day you get approved. But is it really true?
What does the term instant approval imply? In reality, the term “instant approval” actually means “pre-approval” or “conditional approval”. Thus, when a potential customer submits his/her online application, he/she can expect to get a response from the Issuer within minutes or even seconds.
However, the actual processing may take anywhere from 4 to 7 banking days. Within this period, the credit card Issuer will thoroughly review the application and conduct further investigation to determine whether or not the applicant meets its qualifications. For some Issuers that offer instant approval credit cards, one of the standard requirements to get approved is good credit.
Hence, if the applicant has been found to have a bad credit history, then he/she can still get declined or disapproved. On the contrary, if everything goes well, the credit card will be delivered to the cardholder’s address through post mail. Once the customer receives the card, a verification process must be done first before the credit card can be activated.
Instant Approval Credit Cards for Bad Credit
Clearly, the term “instant approval” can sometimes be deceiving. If you do not do your research firsthand, you may submit an application to an Issuer that only accepts applicants with good to excellent credit history. As a result, your application may get declined which can further hurt your credit score.
Hence, before taking any action, consumers are advised to carefully read and understand the credit card company’s requirements as well as the Terms and Conditions on using the card. It is also important to check the status of your credit history by ordering a copy of your report from each of the three credit reporting agencies.
If you have a bad credit history, remember to look for Issuers that offer “instant approval” or guaranteed approval specifically to customers who are credit challenged. In this case, you should look for a list of secured credit cards that can help you rebuild your damaged credit. Does this mean you should not bother to check your credit report?
Although you are looking for a secured credit card, it is still advisable to check your report before submitting your application. Keep in mind that the interest rate you will be offered will also depend on your credit score. If you can manage to raise your score by a few points by correcting errors in your report, then you can enjoy a much lower APR despite having poor credit.