Are you thinking about applying for a credit card? If yes, you should be interested to learn about instant credit cards. This article talks about this particular type of credit card- why you should get one and how you can make the most out of it. However, first, let us define what it is.
Facts about instant credit cards
An instant credit card is one that gives instant or automatic approval. Unlike other cards that will require a good credit history, issuers who offer an instant card do not conduct financial checks when reviewing applications. As long as you have a proof of income, then approval for an instant credit card is easy.
Credit cards with instant approval are great for people who do not have credit history. Perhaps you have not tried to open any accounts in the past. This is your chance to establish a good credit rating for yourself. By doing so, you can be better prepared for financial growth in the future.
Instant approval cards are also recommended for those with poor credit history or low credit rating. By using this card, you can slowly rebuild your rating by paying debts on time. If you want to apply for a loan, but you have a bad rating, it is a wise move to get an instant card first to improve your financial rating before submitting the loan application.
Although you may need to wait for a few months to improve your standing, rest assured that your loan application will not be rejected. In addition, you can ask for lower rates and easier repayment terms from the lender.
Generally, instant credit cards carry higher rates of interest than cards that require good credit. To avoid paying the high rate, make it a point to use your card only for purchases that you can afford to pay back in full. Do not wait for the due date before submitting the payment. As much as possible, you should submit full payment ahead of time to avoid being late.
When looking for this type of card, do not forget to inquire if the issuer will report your payments to the major credit bureaus. You need a card that does accurate and regular reporting so your credit history can be updated accordingly. Remember that not all issuers provide this kind of service so you want to make sure that credit reporting is included before submitting your application.