Instant Approval Credit Cards
Can It Be Really A Wise Choice?
BY: www.newhorizon.org
Prior to applying for an instant approval credit card, customers are cautioned against making hasty decisions. Since the application process is so fast and easy, you'll want to spend more time in assessing what every card offers and compare it with your personal needs and lifestyle.
What Are Instant Approval Credit Cards for Bad Credit?
For individuals who have a high credit rating, getting approval from the top unsecured credit cards on the market shouldn't be a problem. Nonetheless, for those who have a history of poor credit or with a poor credit score, they could rely on instant approval from credit card companies that offer secured cards or bad credit credit cards.
SECURED CREDIT CARDS Secured credit cards are also called "credit cards for bad credit" or "credit cards with instant approval" since anyone can get approved regardless of their credit score. However, the applicant will be requested to submit a security money deposit. Thus, in the event of default, the Issuer can tap in the cardholder's account and apply the security deposit to pay off the charges.
Is it really “INSTANT�? Instant approval doesn't mean that you can expect to obtain a credit card on the same day you submit your application. After submitting your application online, you can find a response from the issuer in minutes. If accepted, your credit card will be sent to you via postal mail and might arrive on your doorstep within 5 to 7 banking days.
The Do's and Don’ts Check your credit report before applying for an instant approval credit card. In case you find errors on your report, do send a dispute letter to the agency that issued your report and ask for corrections. Improving your credit score even by a few points can significantly lower your credit card APR.
Never sign up without studying the complete Terms and Conditions. Focus on the interest rates as some cards may impose three distinct APRs on purchases, balance transfer, and cash advances. Even though the new credit card law limits credit card companies from raising their rates without warning, you might end up stuck in a bad deal if you don't check the fine print. Moreover, don't submit multiple applications to various Issuers merely to determine which one will provide the quickest response. Doing this will lead to too many inquiries on your credit report and might only do more harm to your credit history.
Is It A Wise Choice? When used properly, instant approval credit cards can be great tools for rebuilding poor credit history. Find a secured credit card which will report your payments to major credit reporting bureaus (Equifax,TransUnion,Experian). This way, as you use your secured card for paying bills or making purchases, you're also improving your credit rating one step at a time.
To know more if instant approval credit card is a wise choice, read this https://www.newhorizon.org/credit-info/instant-credit-approval-credit-card/