Pluses and Minuses of Instant Approval Cards

You might have seen offers in your junk mail for online credit companies offering instant approval cards or loans when you fill the application through their website.

When you apply for these, you are granted a limited amount of credit that you can use right away for online purchases.

If you have reached the limit on your credit card and there is something you need to buy online (or want to buy online) you might apply for an instant approval card to make that purchase.

In this consumer society, a maxed out credit card is not unusual. If you use your current card for a purchase that puts you over the credit line of the account, the purchase might go through without a problem.

However, you would have a healthy over limit fee added to your balance. Applying for instant approval on a new account might be a better solution. To apply, you only need to enter the information requested. Your credit doesn't need to be squeaky clean to be approved for a limited amount.

The Pros

When you apply online for a standard credit card you have to wait a week or two for the card to arrive in the mail before using the account. In fact, you may have been instantly approved but the credit line is not instantly available to you.

A great feature of online credit card approvals that promise immediately delivery is that you not only know quickly if you qualify but if approved you can go shopping online with no delay.

Thanks to the World Wide Web you can compare offers from various companies promoting these fast approval accounts and choose the one with the options you want.

The Cons

Not everyone will qualify for instant approval when they apply online for a new credit card. Preferred customers are those who have a good credit history and these are generally quickly approved.

There are some companies who compete to the point of offering instant credit card approval even to consumers who have less than perfect credit and even some who will approve consumers with bad credit.

If you have bad credit problems you need to realize that you will have a higher interest rate and a lower credit line if you are approved. By using the card carefully and paying more than the minimum amount due each month, your new credit card can help you overcome black marks on your credit report from the past.

Special Benefits

Competition among banks that issue credit cards is fierce. Each provider does everything possible to entice new customers with good credit ratings to apply and use their particular card.

Offering incentives is a common practice and is a must in order to recruit new clients. The incentive might be a free balance transfer from an old credit card, no annual fees for the first year or even 0% interest on transferred balances for anywhere from six months to a year.

You may also notice offers for reward points. Every time you use your credit card you earn points which can be redeemed either for special items offered by the lending company or for discounts in stores. Some companies even offer cash back by awarding a value to the points.

There is no reason for why you should not apply for this type of card when you find one that offers extras you know you can use. When credit card lenders are competing heavily for new customers it's possible to find some excellent special benefits for some instant approval cards.