Instant Approval Credit Cards: How They Work

Instant Approval Credit Cards: How They Work

by Ed Vegliante

Everything moves faster in today's world. Credit card companies recognize that consumers expect fast results, and they have responded accordingly. You can now apply for what is known as the instant approval credit card. How does this type of card work? And just how "instant" is it? Here's the run-down on instant approval credit cards and how to decide if one is right for you.
Where to Find Them

Applications for instant approval credit cards are not likely to show up in your mailbox. You can, however, find them online by going to a credit card website. They are often listed in a section of their own. Some can be found in other categories, such as low interest rate cards or cards for those with poor credit.

What "Instant" Means

Most companies advertise that you will know whether or not you've been approved for the card within 60 seconds. This means that after you fill out an online application and send it in, a response will be e-mailed to you in less than a minute. The process is incredibly faster than sending in an application through the mail.

Getting approved for a credit card does not mean that you can begin using it right away. You will have to wait for the actual piece of plastic to arrive in your mailbox. In most cases, this takes between five and seven business days. Once you have the card in your hands, you'll need to call a number to authorize that you have received it. Then you're free to swipe it as you wish.

How the Process Works

Just how do companies instantly know if you can handle a credit card? In most situations, companies run a quick check on your credit. They usually have access to your FICO score. FICO stands for Fair Isaac & Company, the corporation that develops credit scores for consumers. The numbers range from 300 to 850. The higher your score is, the more likely you are to get approved for a credit card.

When the credit card company receives your score and approves the application, it then does a more thorough check. It reviews your credit and makes a final decision based on that. While the instant approval is not a 100% guarantee, in most cases the answer you first receive is the correct one.

Having your private information sent through the Internet may seem scary. But there is hardly a need to worry about fraud in the instant approval process. Credit card companies use the latest data encryption available to make sure that your information remains secure. If you are unsure of a site, check for a padlock on the screen. This indicates that they use the latest security technology.

At one time, instant approval credit cards mostly targeted consumers with good or excellent credit. Today, however, competition between credit card companies has increased greatly. This has resulted in more options for you, the consumer. Even if your credit is poor, you can find cards that offer the instant approval feature.

Regardless of the card you choose, you'll want to read through the fine print before you apply. Also review the other benefits and rewards that are included. Once you've chosen the one that's right for you, the application process takes only a few minutes. You'll soon have another credit card to add to your wallet.