Be Cautious With Instant Approval Label

It may seem convenient to do an application for a credit card and find out minutes later if you have been approved. But the next time you see an “instant” application, take a step back and think about it first.In reality, lenders do need some time to assess your application and there are elements to the process that simply can not be instantaneous. For applicants who do not know what they are getting into when applying for an instant approval credit card, they stand at risk for getting denied. Once denied for the credit card, the applicant’s FICO score will also be harmed and face the possibility of being lowered.

Here is what you need to know when considering an application that claim any of the following: instant approval, instant credit, or instant decisions.

Instant approval credit cards are designed for consumers with excellent credit ratings. If you know your credit score is less than perfect, it would be in your best interest to find another card designed for the type of credit history you have.

Just because a card application is considered instant, don’t assume it means guaranteed approval. Like with all other applications, you need the great credit to back up your application. Instant credit decisions still require lenders to look at your credit history.

Instant decisions does not necessarily mean “in just moments”. Many lenders will still need to take a closer look at your credit history and may therefore provide a “instant” notice of a pending decision while the bank checks for any potential risk. They still must make sure you are eligible to receive the credit card. However, the better credit you have, the faster your approval process may be.

Once approved for a credit card, applicants will not likely receive a credit card number instantly. Compared to the “traditional”credit cards, instant approval cards may get a credit cards in your hands faster but never instantaneously.

Keep in mind that instant credit is not always available and may take some investigation when looking for a good deal. Due to the risk of credit card fraud, banks will still want to have a close look at your credit history before a decision is made and a credit card number is released. People can often apply or instant cards using stolen identity information. If a credit card company approves a fraudulent application and provides instant access to the new credit card number online, the con artist can certainly take advantage of the lender for a lot of money before anyone would realize what had happened. With stricter guidelines, banks and lenders are now forced to tighten the rules to prevent risk.

When you do find a credit card offer that provides an “instant” decision online, make sure that it is part of a legitimate website. Any application submitted online can be considered safe provided the site is authorized to provide credit card application links to the websites of the major banks and credit card companies. Those legitimate sites will take the necessary precautions to ensure the online security tools are top-notch to keep your information encrypted and safe.

Once you apply, again remember that instant probably won’t happen but the lender may email you a tentative decision while the application is reviewed. Once approved, you can expect to receive the actual credit card in the mail within 7 business days.

Each credit card company will have different terms and conditions so it is crucial that you read through the information on different cards and with various lenders and compare which works best for you.

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This entry was posted on Saturday, January 24th, 2009 at 12:42 am and is filed under Choosing a Credit Card, Credit Card Applications. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.