The Benefits and Drawbacks of Instant Approval Credit Cards
Monday, February 4th, 2008Instant approval credit cards are those credit cards which you can apply for online and then receive an immediate answer as to whether or not your application has been accepted. As use of the Internet for credit card applications has become more and more prevalent, the number of instant approval credit cards has gone up considerably. This is mostly a good thing, because it provides a number of benefits to people who are seeking assistance with their financial situation. However, there are some drawbacks associated with instant approval credit cards which you should be aware of when you’re considering making these applications.
The basic benefit to instant approval credit cards is that you know right away whether or not you’re going to get the card. This is good for many reasons. For one thing, many people apply for cards when they really need the cash. Knowing that it’s coming is a relief. Additionally, people apply for credit cards when they are trying to sort out their finances. Most people only do this on occasion so it’s good to get a solid answer during this time. For example, perhaps you’re looking at getting a balance transfer. If you have to apply and then wait several weeks for approval, you may no longer have the time to deal with making the transfer. If you can get approval immediately, you can transfer the funds and be done with the financial issues.
The immediacy of knowing whether or not you’re going to get these cards is great. However, there are drawbacks to consider before you go hog wild applying for instant approval credit cards. One of those is precisely that; that you can go wild. It’s bad for your credit if you make too many applications at one time. This is often what people do when they are being denied for instant approval credit cards; they keep applying online until they get one. This may result in getting the desired credit card but can greatly impact your credit history which in turn makes it more difficult to get cards in the future.
One of the most frustrating things about applying for instant approval credit cards is that they aren’t always instant. They’re designed to provide a clear “yes or no” answer to people based on their credit score and credit histories. However, people’s financial situations are often complex. In some cases, the credit card company has to take more time to review your application and informs you online that you will be receiving an answer in the near future (instead of immediately). While this can be frustrating since you were seeking an instant answer, you should remember that there are both benefits and drawbacks to the instant approval credit card. The delay may end up being for the better so if it happens to you, exercise some patience.
