In these days of 24 hour access and instant-everything it was only a matter of time before credit card companies followed suit. Provide some basic personal information and a decision for approval can now be made in a matter of minutes.
How instant is 'instant'?
The term ‘instant’ is a slight misnomer. Even if you get approved right away you will still have to wait 7 to 10 days to receive your new credit card through the post.
Although most card companies do genuinely offer instant approval, some will only give a decision in principle. They will then make further checks on you via a credit reference agency which could still lead to your application being declined.
If a card company’s ‘yes’ is, in reality, only a ‘decision in principal’ then you will be informed of this at some stage during the application process.
Winning approval
Often, a good or excellent credit rating is a major advantage for getting instant approval. But don’t despair - competition among the rival card companies is fierce, which is good news for you. This means that they could be willing to take a punt on you – even if your credit history is slightly chequered – rather than see you sign-up with someone else.
If you are concerned about your credit rating then you can always check it online before you apply. If you are turned down then don’t be afraid of asking why (although the lender is not always obligated to tell you). It may be for something as simple as failing to meet their application criteria.
Forewarned is forearmed, as they say, so the next time you apply for a credit card you should check the card provider’s application criteria first (you can do this via our credit card comparison tables) and ensure that you are eligible.
Fools rush in
However, making the credit card application process easier can also be a bad thing. For one, it makes applying for another credit card straight after being turned down, very tempting.
You should be aware that a record is kept every time a lender checks your credit. This can have a negative effect on your credit rating as applying for a number of cards over a short amount of time makes you look desperate for credit. In a credit card company’s eyes this will make you look like a risk and increase your chances of being turned down.
Most importantly, the fact that you can get approval in a matter of minutes doesn’t mean you have to take the same amount of time deciding which credit card to sign up for. “More haste, less speed” is definitely the approach to take with instant credit cards.
Take your time to compare the different cards, read the terms & conditions carefully and get the credit card that’s right for you. If you are looking to have an existing balance transferred to a new card then it is recommended that you start your planning at least 5 weeks in advance!
