This is where companies have already looked at your credit history before they have offered you a credit card. This means that you are in a position to accept their offer without having to go through the process.
Does this alter from an Instant Feedback Decision?
The fundamental difference between this and instant approval is that with instant approval they have already enquired about your credit history. With an instant decision this means they will get a decision out to you quickly.
How does instant credit relate to Instant Approval?
Instant credit means that you are able to go away and start making purchases straight away because the credit card has provided you with temporary account details. This is no longer a popular choice and the main reason for this is that it puts banks and credit card companies in a position where by they are vulnerable to credit card theft.
Are instant approvals safe?
Instant Approvals are safe because if you are visiting the website of a company that you have heard of, and the data being sent is encrypted then the risks are similar or less to using a postal service, however it is worthy of note that they are fundamentally different. To check if data is encrypted look in the address bar, and should this read https:// rather than http:// then your data will get to the intended recipient.
After instant approval, how long will it take to get my credit card?
On average this will be around one week or even less in some cases. We recommend that you visit the concerned website for more specific information from the provider that you have chosen to work with.
How should I use my credit card?
You should use your credit card as you deem appropriate, however we recommend that you follow a few basic ground rules. Firstly, never use your credit card for a purchase if you are not able to envisage where the money is going to come from to finance it. If for example, you are not able to increase your income or decrease your expenditure then you should probably consider alternative means of financing a purchase.
Should I use my credit card online?
Shopping with a credit card is probably the safest way to shop online. The reason for this is that when you shop with a debit card your bank will not cover any losses that you incur as a result of fraud or a lack of integrity on the part of the merchant. This is why you should always ensure that should you intend to complete a large scale online purchase or offline purchase for that matter, use a credit card rather than a debit card.
It is really quite simple. This is what the credit card companies allow, this is what they want and this is how they make it rich. The worst part is that they love for us to fall behind.
Everybody likes to get paid on time, but your creditors actually prefer the opposite. They want you to be late!
Now granted they don't want you to be too late or to default, but a week or two is just great. Let's just think what a late payment means to them. You are still paying, but you are a week or two late. Their late fee is $30. They just made $30 for doing nothing. You are already maxed out, so this fee puts you over your credit limit. This earns them another $30 for, again, doing nothing.
You can now make your minimum payment of $20. The math does not work in your favor. Let's just say that you have $15 in interest for the month. Your total costs are; $15 in interest + $30 late fee + $30 over limit fee = $75 charged to your account. You pay $20, which leaves you $55 worse than when you started and you have nothing to show for it.
This is why credit cards are evil and we must learn to do without them!
The first step in this process is to gather up all of your credit cards and destroy them. You can save one or two, but get rid of the rest. Just pick the ones with the lowest interest rates and preferably no annual fee. Store your select few in a safe place that is not easily accessible.
This may seem extreme, but most people do not have the will power to simply not use the card. They look at their statement, see $50 or $100 dollars in available credit and look at it as free money. There is no such thing.
If you can't bring yourself to cutting up your cards, at least gather them all up and store them somewhere that would take some effort to get to. A safe deposit box is always a good idea. You can also have someone that you trust hold on to them or hide them.
The key is to not have them accessible for those impulse purchases that we come across every day. Once we pass the moment, chances are that we will realize that we don't need to make that purchase or probably forgot about it all together. We are now even closer to getting out of debt.
Don't forget to cancel the cards that you are no longer going to use. Most credit cards have an annual fee, anywhere from $30 to $100. This is wasted money that you can use to apply towards the balance.
Some cards may charge you a closed account fee to persuade you to stay with them. At this time you need to analyze the impact. I recently cancelled a card that is charging me $3.50 a month in closed account fees. My annual fee is $59. 12 months at $3.50 is $42. I am still ahead of the game by $17, or more, if I pay it off within a year. The most important part is that there is no way that I can use that card again and worsen my situation.
Now that the temptation is out of the way you can start paying them off. Just remember to pay at least the minimum, pay all accounts on time, and stop using credit. Now step back and enjoy the road to financial freedom.
Both Devin Gilliland & Glen Speckmann 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.