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Instant Credit Approval Credit Card? Is This A Smart Choice?

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Published: 06Jun2010
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Instant approval credit cards are very popular nowadays, however, making hasty decisions can sometimes lead to a bigger problem. Since applying is indeed fast and simple, you might need to spend more time in assessing what each card has to offer as well as compare it with your personal needs and way of life.

What Is An Instant Approval Credit Card for Bad Credit?

With regards to people with a high credit rating, obtaining approval from one of the best unsecured credit cards available in the market should never be a dilemma. On the other hand, individuals with a history of bad credit or possess poor credit score can apply for instant approval secured cards or bad credit credit cards that are now being offered by many credit card companies.

Secured credit cards are also referred to as "credit cards for bad credit" or "credit cards with instant approval" since anyone can easily get approved no matter what his/her credit rating is. However, an applicant must submit a security cash deposit. In the event that the credit card holder defaults payments, the Issuer is given the right to tap into the cardholder's account and take the security deposit to pay off the balance.

Quick approval does not necessarily mean you can get and make use of the credit card the very same day you have applied for it. Once you have submitted your application online, the Issuer will send you a response immediately. When approved, your credit card will be delivered to you via post mail within five to seven banking days.

Things to Keep In Mind

The interest rate may vary depending on your credit score. Even though this type of credit card offers a guaranteed approval, your APR will still depend on your score. This is the main reason why checking your credit report is essential before submitting any application especially if it is for an instant approval card.

If ever there are errors in your report, the next step is to let the bureau who issued your report know about this error. Send them a dispute letter and ask for corrections. An improvement on your credit score, whether it is just by a few points, can help in reducing your APR.

Avoid signing up any contract or document if you haven't read the Terms and Conditions carefully. Look closely at the interest rates since several cards may impose three different APRs on purchases, balance transfer, and cash advances. Even if the new credit card law warns credit card issuers about increasing their rates without any notice, you might find yourself trapped in a bad deal if you will not take time to understand the fine print.

Furthermore, never submit multiple applications to various Issuers just because you want to see which one will provide you an immediate response. Too many inquiries can cause damage to your credit history so it is best if you will refrain from doing this.

Is This A Smart Choice? Should you apply for an instant approval card? When used in the right way, an instant approval credit card is actually a great tool to use when repairing a bad credit history. Make sure that the secured credit card you will choose reports to the major credit reporting agencies (Equifax, TransUnion, Experian). By doing this, you can improve your credit score each time you are using your card to pay bills or make purchases.

New Horizon Business Services, Inc NHBS, Inc has been providing consumers and business owners with financing since 1989. Join our mailing list for Free Tips on Rebuilding and Repairing Credit. Click here for the list of instant approval credit cards that suit your needs.

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