Instant approval credit card is not a form of credit card, it is a term used to describe how fast a credit card can be approved.
Typically, if you apply for a credit card by mail you should get a response in 30 days. However, times have changed and everyone just wants to get youngsters done quickly.
Hence, the need for instant approval credit cards. All you need to do is, visit the specific card issuer website and apply for a card.
The entire process is seamless and fast. Once you input the required information, the issuer responds to your application via mail. Although it is called instant approval doesn’t mean your application cannot be declined.
If your credit scores and history does not match the issues requirement your application would not be approved. According to capital one it can take 60 seconds to receive the approval or disapproval mail. This can be shorter or longer, it depends on the issuer.
The most important thing you should know about instant approval credit cards is that your credit score plays a major role in your application. Therefore it is better to conduct a self assessment of your credit score to determine if you qualify for the credit card or not.
Alternatively, you can use the issuer’s pre-approval credit card(please confirm this) to ascertain if you are qualified for the card.
An instant approval doesn’t mean you can use the card instantly to make purchases.
What is an instant approval credit card
Just like the name, an instant approval credit card guarantees a quick response for your application. Formerly, it takes as long as 30 days to receive a response concerning your credit card approval. In this era, where everyone wants things done quickly, 30 days is quite a long waiting time.
Now, you can apply for credit cards and receive a yes or no based on your credit score through a mail in a few minutes. Although an instant approval credit card might take less than a minute to get a response in some cases, it might be longer. If you request for an unusual high credit limit, have a freezer credit record or any fraud related issues. The card issuer might request for additional information and this may take days to process.
How does it work?
When you start using a new app, you are asked for your email address. In a few seconds you receive mail from the company to confirm your mail. This is exactly how instant approval credit cards work. You are made to fill an online form with certain information including;
Personal information: Your name, residential address, date of birth and other important information will be required.
Check out the other things that are required.
Instant approval credit cards are not the same as instant use credit cards therefore, you would still need to wait to receive your credit card. Wells Fargo’s states that it takes 3-5 days to mail a credit card and 10 business days for Capital one.
The difference between instant approval and instant use
There is a big difference between an instant approval and an instant use credit card. You get instant approval on your request for a credit card application – it can be approved or declined. The major fact is you get your approval within few seconds or minutes. Instant use credit card has a distinguishing factor.
After your card application is successful, some issuers like American Express give you your credit card number. You can use this number to pay for online purchases. Instant approval gives you an instant yes or no while instant use provides you with your virtual card number and you can make purchases. There is a big difference between an instant approval card and a guaranteed card.
What is a guaranteed card
People with bad or no credit score might be looking for an urgent fix. Therefore, they opt for guaranteed credit cards. Guaranteed credit cards offer instant approval without checking credit scores. This might sound like a good deal but is it?
Most guaranteed credit cards attract;
- A high annual fee
- High interest rates
- And other additional charges that will be expensive.
If you have bad credit and you need urgent cash to fix certain issues, you can get a guaranteed credit card. Conduct a thorough research about the card issuer before sending in your application. Always ensure that you crosscheck the additional fees with other issuers before making a choice.
Instant credit cards and hard inquiry
Credit card application has a strong impact on your credit score. It is classified as a hard inquiry and it is capable of reducing your score. The impact of a hard inquiry can last on your credit report for 2 years.
Therefore, you need to be cautious. If your credit card application is declined don’t move swiftly to the next available card issuer.
Examples of an instant approval credit cards
Are you searching for card issuers with instant approval? Here is a list you can start with
- Retail store cards
Most retail stores like Walmart, fashion stores and boutiques have credit cards. As a customer, you are given the option to apply for a credit card at the store. Your application is approved and you can make purchases with your card. There are certain terms that apply to different retail stores, your approval depends on the store’s terms.
However, quick a number of retail store cards are known for;
- Low credit limit
- High annual percentage fees
Look through their outlined benefits and additional fees before applying for a card.
Other examples of instant credit card includes;
- Bluecash Preferred Card from American Express
- Upgrade Triple Cash Rewards Visa
- Amazon Prime Rewards Visa Signature Card
- Alastair Airlines Signature Credit Card
- Capital One Platinum Secured Credit Card
- Bank Of America Premium Rewards Credit Card
You can receive a response about your credit card application in 60 seconds or less. Once you input the required information, the issuer confirms your credit score and you receive a “positive” or “not so positive reply” Don’t request for more than one credit card in a month or two. It will leave a negative impact on your credit score.