How Smart Are Instant Approval Credit Card Choices?December 17, 2010 - 8:45 am
If you ever venture around online looking for credit card deals, you have likely been ransacked with advertisements touting instant approval on your online credit card application. It may should like a good deal if you are interested in a new credit card but for many with bad credit and low credit scores, there is no guarantee the approval will be forthcoming.
How ‘Instant’ Are These Approvals?
In most cases, instant approval credit cards are misleading. The instant approval generally results in a pre-approval based on the online application that has been completed by the consumer. Most times a credit card issuer will require more detailed information in order to officially offer a new credit card. The pre-approval application online is what generates the instant online approval.
Consumers often expect miracles with instant approval credit cards. While applications do go faster without having to wait on mail delivery, the rest of the process remains the same. New cardholders expect an online approval within minutes as well as the arrival of the card the next day. This is not generally the case. Most new cardholders will still have to wait 7-10 days for the card to arrive by mail. Credit cards will also need to be activated before they can be used.
Who Gets Approved Instantly?
Consumers who practice good personal financial management and excellent credit scores, instant approval credit cards will likely be possible after a short approval time period. Many consumers can literally find out instantly if there credit card application was successfully approved online. Others may have to wait a day or two for application for initial approval or denial.
Consumers with bad credit need to face facts – you need decent credit to get approved for credit cards and any type of financing. For those who have less-than-perfect credit histories your application will likely be refused and as a result of your applications you will end up doing further damage to your credit score.
What You Should Understand About Instant Approval
When you apply for any credit card, it should not be done impulsively. There is an impact on your credit score and how your future creditors will view your ability to handle credit. You should always research your options for a new credit card before applying for any card. By haphazardly applying for just any card you think you can get, you are reducing your credit score significantly with every application.
If you do get approved for one of these credit cards without reading through the terms and conditions, you may find later that the card does not meet your financial needs. You may end up paying a much higher interest than you anticipated. Without properly researching the kind of card you need and only being focused on the instant approval aspect, you are doing yourself a disservice.
You also need to ensure that the instant credit card approval offer you are directed to in the advertisements is offering applications through a secured website. It is a good idea to make sure the URL address begins with https:// and a padlock ion appears in your browser to indicate a safe and secured zone. You never want to fill out online applications through sites that are not secure due to the nature of the information you must provide for the application approval.