Why some credit cards offer instant decision
Applying for a credit card is a long process which might take 5 to 15 days. The process usually involves submitting your personal and financial data to the credit card issuer who will then proceed to verify the data and also find out your credit rating from the credit bureaus. Based on this input the credit card company sets the credit limit and APR percentage and decides on the benefits to be offered.
However, you may find that banks also offer instant credit cards in certain cases. Actually, you do not get an instant credit card but only get an instant approval for your application. You can apply for an instant approval credit card in 2 cases
- Excellent Credit: When you have an excellent credit rating, then the bank is willing to offer you instant approval credit card. Basically, the decision is made in less than one minute based on the financial data you have provided. The bank is willing to trust the credit rating offered by the credit bureau and does not think there is a need to do independent verification of your paying ability.
- Bad credit: If you are classified as a bad credit customer, the banks might still offer you instant approval credit cards but on not so favorable terms. They might charge you a higher interest rate and might not allow balance transfers and cash advances. Some instant approval credit cards are prepaid cards in which you need to deposit the amount in the bank before using the card. In any case, these cards can help you to develop your credit history and boost your credit rating.
Instant approval cards offer different terms and conditions of annual fees, interest rates, introductory periods and balance transfers. They might also offer different rewards schemes like cash backs, gas points, frequent flyer miles and much more.
So if you want an instant online credit card, you will need to research and compare the different instant approval credit card offers and submit your application online. If your application is approved, you will receive the credit card within 7 days depending on the speed of snail mail. If your application is not approved, you can move on to another instant credit card application.
Instant credit card offers help the bank to be more customer friendly and thereby attract more customers and for the customer, it helps to save time in getting a credit card.