Guide to Instant Approval Credit Cards

An instant credit card approval is one of the most-advertised phrases you will encounter when searching for a new credit card. For this very reason, many consumers expect to have access to their cards immediately after they have been approved by the credit card issuer or banks.

Verifying Your Instant Approval Credit Card

In a few cases, this can be true. Most of the time, however, consumers will have to wait at least several weeks before their credit cards are even mailed out after approval prior to making any purchases with the "instant" card. In addition to waiting for the initial processing of the card, most credit card issuers implement an identity validation procedure once the credit card is delivered to your home. This process is used mainly to protect both the credit card company and the consumer from possible identity theft.

The activation process of your instant credit card approval involves verification of your home phone number listed in the application form and confirmation of the last four digits of your social security number.

Qualifying for Instant Approval

In general, the term "instant credit" is used by major retailer outlets as an incentive for getting customers to shop at their store. In addition to giving the consumer a card for the store, the consumer may also get a 10 percent discount when making his or her first card purchase. Having several "instant use" credit cards, however, could have an adverse impact on your personal credit score. So be careful about the number of cards you apply for.

Contrary to popular belief, not everyone who applies for a credit card will be approved with instant approval credit cards. Consumers who are more likely to get their credit application accepted promptly are mainly those with a very good credit history or high FICO scores and those without records of late payments on any kind of bill. In addition, credit card issuers will assess whether the consumer has at least one major credit card and is worthy of a "pre-approval" application via telephone or mail.

Although there's no harm in filling out an application for an instant card approval, remember that having a low credit score or poor credit history will reduce your chances of getting approved. This does not necessarily mean you will not qualify for this type of card, but for all those applying for instant approval cards, particularly those with poor credit, remember to research possible hidden fees and high interest rates before signing any new card application contract.

Pros and Cons

One of the pros of instant approval credit cards is the fact that they can cut down the processing time when it comes to receiving your credit card. The duration of waiting for your credit card can be reduced from the average 5 weeks down to 2 weeks. As previously mentioned, instant approval cards usually target people with good credit histories. Consequently, they are often associated with low introductory APRs and low rates on balance transfers. On the other hand, depending on your credit history, most companies do not disclose your line of credit immediately. You will only receive this information once you get hold of the card. In addition, there is still a waiting period before receiving the card.

Application Process

The process of applying for an instant approval credit card is easy. After you have researched the most appropriate card for your situation, you should expect to be asked for your social security number and yearly household income, and some credit card companies will require still more personal information.

If you applied for an instant credit card online, your "pre-approval" evaluation usually takes just a few minutes. When you have been approved for your credit card application, never assume that you can use the card immediately. It will take at least a few days, if not weeks, before you can actually use it.