How Instant Approval Credit Cards Work

By Leni Parrish on October 3, 2010

Instant approval credit cards, what pops into mind when you hear this? Do you get approved instantly upon application? Fortunately, yes. Can you instantly use the credit card? Unfortunately, no.

Let’s review how it works first. Credit card companies screen people they want to offer their credit cards to. The will basically see if the person has a very good credit history and that the person has a stable income that can cover sufficiently the credit amounts. And if the candidates pass, here’s where they stuff the credit card offers in mail boxes. They will tell these people that they were “prescreened” and that these people can just say “yes” by replying the mail or calling the credit card company.

People may also initiate the application by applying personally to the company. Other credit card company allows phone applications and online applications, which can be easier for them, due to its automation. Here, in the phone and online application, the consumer will still undergo a credit history check for screening purposes. There are some cases that the applicants may be denied. Some has to take a long period of investigation for this purpose. If you want to get a credit card instantly, get an instant approval credit card. Just make sure you have a good credit score, about 700 and up (FICO scores). The notification is quick, so don’t worry about waiting too long. Just get ready for the thrill of knowing whether it is a “yes” or a “no”.

After getting the instant approval, the credit cards are not immediately available. There are some cases that even with the applicant approved already; they might need more investigation. They still need to estimate the risk of default of the approved customers. Then later on, the tendency would be the credit may tend to become lower, especially when the credit card company has seen a significant list in the applicants despite their being instantly approved. Usually, it would take about two weeks for the new card to arrive. During that two-week period, be sure you can still use your own money until the card arrives. If you have already received the mail, you need to activate it to put it into use. The number to call for is located in the back portion of your card. So before going to malls and embarrassing yourself, make sure you have complied with everything that you do.

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