Instant Credit Card Approval – How They Work
If you’re looking for an instant credit card then there are several ways to go about successfully doing so. First and foremost you should understand that there are two types of credit cards – secured credit cards and unsecured credit cards.
Secured credit cards require collateral in the form of a cash deposit into an account. The cardholder then is granted a line of credit equal to that amount and over time and responsible use, earns the right to be extended a line of credit that exceeds what they have deposited.
Secured cards are primarily for people that have a poor credit history and would like to prove to the credit bureaus that they are worthy of receiving credit. They can do this because the secured credit cards report to the three main credit bureaus and when the cardholder shows responsible use over time their credit score will increase accordingly.
Unsecured credit cards do not require any collateral in order to have a line of credit extended to the account holder. These are the types of cards that we are most familiar with and are issued through banks including Chase, Bank of America, HSBC, Citibank and so on.
The key for getting instant credit card approval is to first find a quality credit card comparison website that has a category dedicated specifically to instant approval credit cards. These sites make it easy and convenient to compare offers branded from the leading companies including Visa, MasterCard, Discover and American Express.
Just about anyone will get approved for a secured credit card as long as they meet the deposit requirements. Unsecured credit cards are a whole different matter. They require a credit check on the applicant to see not only if they are credit worthy to be approved, but also what interest rate they will be given.
The interest rate on a credit card, also known as the annual percentage rate (APR), is based on the Fed funds rate and current government backed securities such as treasury bills. When it comes to credit cards the lowest interest rates will be given to those applicants that have an excellent credit history. This usually means a credit score of 750 or above.
It is wise to get a copy of your credit report prior to applying for a credit card. This will allow you to review your credit history to make sure that there is no false or errant information on the report that may be causing you to have a lower credit score than you deserve. It is also a good way to make sure that there is no unauthorized financial activity taking place in your name.
If you do in fact have an excellent credit rating then you’ll have absolutely no problem being approved for an instant credit card. When you enter your information it will take about a minute or so before you are notified that you have in fact been approved. If you were not approved for any reason then further instructions regarding that decision will follow.
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