Credit Card Education Guide

The Facts about Instant Online Approval Credit Cards

Many cards are advertised as being an instant online approval credit card, but this term can be a little misleading. The credit card issuers realize that when a consumer decides to apply for a credit card it is usually because they need to purchase something right away that they can only afford to buy on credit.

It would be more accurate to describe this type of application as being an instant online decision, since using the other term is commonly associated with the following three misconceptions by the customer.

Credit Report

Your credit score and report depends heavily on the possibility of receiving the instant approval. The reason for this is the automated process that has been implemented by the card issuer in order to provide you with the result right away. There is no human involvement and if you don´ t have a high credit score and a report with no negatives that that could result in the issuer is not being willing to extend you any credit without a real person going over your information and assess the risk involved with approving the application.

People with less than perfect credit can still target the instant online approval as the credit card market is highly competitive and some issuers may be willing to accept the added credit risk rather than the risk of losing a customer, however if you are denied and want to apply with another issuer you should limit yourself to a maximum of three applications as every application result in a credit inquiry that temporarily affects your credit score negatively.

The card issuers are continuously trying to improve their algorithms, because it is to the benefit of not only the consumer, but also to themselves. The automated decision can cut down costs as issuers can reduce the number of employees and on the other hand consumers are grateful for the instant decision and not having to worry about the status of their application for weeks.

No Guarantees

Consumers are often under the impression that they just need to submit the application and they are guaranteed to receive an instant approval, but they are just as likely to receive an instant denial of credit or a message that more time is required to process the application. There are no guarantees when it comes to unsecured credit and you can only expect a guaranteed approval if you apply for secured credit cards or prepaid cards as there is no risk for the issuer in these cases.

Using the Credit Card

If you do receive an instant approval to your application that does not mean you will be able to use the card right away. You need an actual card to make purchases in a store, which means you need to allow time for the card to be delivered in your mailbox. Due to security reasons the card issuer will not email you the credit card numbers, so you are still required to wait for the actual card even if you just intended to use the card for online purchases.

The Application Process

It is just as easy to apply for credit cards with instant online decision as any other credit card online. Compare the cards available and find the best card for your situation. Answer the questions regarding your personal information and yearly household income truthfully, submit your application and wait up to 60 seconds for the decision.