Everything moves faster in today's world. Credit card companies recognize that consumers expect fast results, and they have responded accordingly. You can now apply for what is known as the instant approval credit card. How does this type of card work? And just how "instant" is it? Here's the run-down on instant approval credit cards and how to decide if one is right for you.
Where to Find Them
Applications for instant approval credit cards are not likely to show up in your mailbox. You can, however, find them online by going to a credit card website. They are often listed in a section of their own. Some can be found in other categories, such as low interest rate cards or cards for those with poor credit.
What "Instant" Means
Most companies advertise that you will know whether or not you've been approved for the card within 60 seconds. This means that after you fill out an online application and send it in, a response will be e-mailed to you in less than a minute. The process is incredibly faster than sending in an application through the mail.
Getting approved for a credit card does not mean that you can begin using it right away. You will have to wait for the actual piece of plastic to arrive in your mailbox. In most cases, this takes between five and seven business days. Once you have the card in your hands, you'll need to call a number to authorize that you have received it. Then you're free to swipe it as you wish.
How the Process Works
Just how do companies instantly know if you can handle a credit card? In most situations, companies run a quick check on your credit. They usually have access to your FICO score. FICO stands for Fair Isaac & Company, the corporation that develops credit scores for consumers. The numbers range from 300 to 850. The higher your score is, the more likely you are to get approved for a credit card.
When the credit card company receives your score and approves the application, it then does a more thorough check. It reviews your credit and makes a final decision based on that. While the instant approval is not a 100% guarantee, in most cases the answer you first receive is the correct one.
Having your private information sent through the Internet may seem scary. But there is hardly a need to worry about fraud in the instant approval process. Credit card companies use the latest data encryption available to make sure that your information remains secure. If you are unsure of a site, check for a padlock on the screen. This indicates that they use the latest security technology.
At one time, instant approval credit cards mostly targeted consumers with good or excellent credit. Today, however, competition between credit card companies has increased greatly. This has resulted in more options for you, the consumer. Even if your credit is poor, you can find cards that offer the instant approval feature.
Regardless of the card you choose, you'll want to read through the fine print before you apply. Also review the other benefits and rewards that are included. Once you've chosen the one that's right for you, the application process takes only a few minutes. You'll soon have another credit card to add to your wallet.
Many people today have heard about the "instant approval" credit cards, but may not understand exactly what they are. Instant approval is the method used by banks and credit card companies to take your application and instantly make a decision based on data they get from your online credit report. It is different from traditional credit card applications because you are either approved or rejected as soon as your application is submitted.
Instant approval is a method that is different from instant decision. When a bank makes an instant decision, this means that a certain period of time is given to the credit card company to decide if an applicant is approved. They will typically do a detailed background check, and it may take days or weeks for them to decide if applicants are approved. Many people may have also heard of the term "instant credit."
Instant credit means that in addition to being approved immediately, you are also given a temporary credit card that allows you to make online purchases. Instant credit isn't used much by the banks today due to the many fraudulent charges that were made after they begin offering it. Instant approval gives banks a reasonable amount of time to determine if an applicant is a good candidate.
Instant approval applications are just as secure as traditional applications that are sent through the mail. If you apply for instant approval credit cards online, make sure you go through banks and credit card companies that offer the highest level of internet data encryption. In most circumstances, using secure online instant approval services are much safer than sending applications through the mail. If your application is approved, you can expect to receive your card in about a week. The delivery time will vary depending on the company you use.
In most cases, instant approval means that the bank will give you a temporary approval based on your online credit information that will keep you occupied while they do more detailed research. The banks will do additional research to make sure your online data is accurate. While many people who apply for instant approval credit cards think they will immediately be issued a card, this is not always the case.
It is also important to make sure you have decent credit before applying for an instant approval credit card. Most decisions are made based on the FICO score, and if you are declined you credit score could be lowered even more.
Both Edward Vegliante & Cindy Kenny are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.