How Instant Approval Credit Cards Work
Here’s how ‘instant approvals’ work and what to expect.
You need a new credit card – and you need it fast! An instant approval credit card will speed up the process and provide an instant decision to your credit inquiry in just seconds. But how quickly will you actually be able to use your new credit card? What does ‘instant approval ‘ really mean? We’ll show you how instant approvals work so you know what to expect:
Basics of instant approvals:
The electronic age has brought drastic change to the credit industry. Data can now be accessed almost instantaneously to determine if you qualify for a new credit card or other line of credit. Most decisions are made by using your FICO score, which is calculated by the Fair Isaac & Company. Typically, you need to have good credit – or a score greater than 650 for an instant approval credit card. But there are a few exceptions, and several credit card issuers provide instant approval for people with bad credit
They allow you to apply online and receive a response to your credit card application within seconds. While ‘instant approvals help eliminate the stress and confusion of waiting for your credit card application to be reviewed, be aware that in many cases this is only a conditional approval until your application has been gone over in detail. Luckily, almost all decisions ulimately result in an approval since your FICO score is such an accurate indicator of your credit history.
When can I use my card?
A common misconception of consumers who seek instant approval credit cards is that they’ll have immediate access to their credit line after they’ve been approved. While this may have been true in the past, most banks have stopped providing temporary credit card numbers to approved applicants due to fraud. In general, you’ll will have to wait 7-10 business days for your new credit card to show up in the mail before you can actually start making purchases.
Why apply ‘instantly’?
Instant credit cards provide access to your new line of credit much faster than traditional credit cards without instant approval. Although you won’t have the ability to make purchases immediately, you’ll get your card much quicker and you won’t have to worry about the status of your credit card application. Since a typical review could take up to a month, if you need a credit card fast – instant approval credit cards will definitely speed up the process!
* See a complete list of instant approval credit cards