Would You Apply for an Instant Approval Credit Card?

By Leni Parrish on December 1, 2009

Is your credit rating good? Do you have an existing plastic? Are you considering getting an instant approval credit card as a second card? I personally know of people who applied and were instantly approved to have another card. These days, it only takes a minute or two to apply online or via telephone. Demand for instant credit probably started when retail stores offered incentives, like discounts, to customers who actually buy in the store. People started to believe that they are getting their money’s worth because of this price slash.

Getting instant approval credit card, though, needs to pass through a qualifying process. Unlike popular belief, being qualified for an immediate approval is not that easy. You have to ask yourself: Am I handling my finances well? Does my history say I am not a delinquent card holder and that I pay-off my dues on time? If you answered yes, most likely your application will be approved. Issuers will have to verify your worthiness for another credit line. It is true that having a low credit score will reduce your chances of getting qualified, but that does not mean credit card companies will not approve you. They will still review your request. However, before signing up, make sure to check the fine prints of an agreement because, generally, rates are higher for bad credit. There could also be a lot of hidden charges so it best to be wary.

Even if your instant approval credit card becomes successful, you will still have to wait a few more weeks to actually receive your card and use it. A verification process will be ordered to activate an account. This is for protection of both the holder and issuer.  A card company will validate your identity and your home phone number listed in the application. Of course, the last four digits of your social security number will be verified too. In most cases, annual household income will also be asked from you.

The advantage of an instant approval credit card is the time you save waiting for actual plastic to be delivered to you. When others wait for their cards for approximately five weeks, you will get yours in about two weeks. However, you only get an idea of how much the limit will be once you receive the card through mail. That is considered a disadvantage especially if you are waiting to spend on something.

While it could be really tempting to apply for easy credit, remember that ratings are greatly affected by the number of accounts under your name, so be careful with your applications.

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