Pros and Cons of Instant Approval Credit Cards

With today’s technology, you can obtain instant access and approval for credit cards online through the internet. Credit card companies will take you through a step by step application process where you complete all the pertinent information. Using the social security number you provide, the company can instantly check your credit score with the three major credit reporting agencies. If your credit score is within an acceptable range, you can get instant approval notification.

However, if there are additional issues with credit that the company needs to research further, or if your credit score is too low, you may receive notification right away of your denial.

Instant credit card approvals do offer convenience. But are they the right way for you to apply for a new credit card? Here is a look at some of the pros and cons of instant online credit card applications.

Instant Approval Credit Cards Pros

• Obtain the best credit cards. Usually, reputable credit card companies will have online applications that offer excellent perks. You can get rewards cards, no annual fee cards, and 0% introductory APR cards all online.

• Instant knowledge of your status. You don’t have to wait for a notification to arrive by mail to let you know whether you’ve been approved or denied. Often, it is convenient to know right away what the credit card issuer’s decision is.

• Start using right away. Some credit card companies may even provide you with a temporary credit card number that you can start using right away for internet purchases. Apply, get approved, and start shopping!

Credit Card Instant Approval Cons

• You may not know what you’re getting until after you apply. Credit card companies may not provide you with the full details of the terms upfront before you apply online. This can cause surprise and dismay when you get the credit card with the terms, or your first bill with an outrageous interest rate or high annual fee. Always know the full terms of a credit card before you apply.

• Not all online applications are “instant”. Although some companies may claim to give you instant notification, you still may get a notification that they need additional information before making a decision. Even those with high credit scores can receive this notice if there are legal judgments or other types of legal action showing on a credit report. Credit card issuers will need to gather more information about these documents before making a decision.

• Multiple instant credit checks can affect your credit score. Every time a company checks your credit report, a notation is made with the reporting agency. Companies can see how many checks have been made into your credit in the last 30 days. Say that you have applied for four instant credit cards online in the same evening. Whether you were approved or not all, these checks all show up on your report, lowering your score and potentially impacting a future approval. Be sure to limit the number of times you allow someone to check your credit.

Instant approval credit cards can be convenient and easy, especially if you have excellent credit. However, it is important to read the fine print to ensure that the instant approval card is the appropriate one for your financial needs.

Write to Grace Carter at grace@creditdonkey.com

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