Instant approval credit cards

Some people want to know if they have been accepted for a credit card immediately, and they are prepared to pay more interest in order to achieve this. This is why there are instant approval credit cards.

There are many types of instant approval credit cards and many differences between these cards. The different varieties are called by different names, and the credit card applicant should take some effort to understand these multiple differences to understand which card is most suitable for them.

Some cards are advertised on the internet as offering instant approval, or approval within 60 seconds or less. These credit card companies usually make use of a smaller-than-usual amount of information, supplied by the applicant, to decide quickly whether or not to provide that person a credit card. This can be done within seconds because these credit cards generally charge a higher interest rate and higher annual fees to allow for the greater chance of default.

Often with these cards and their instant approval process, the credit card number, expiry date, and other details are determined and made available immediately, enabling the card to be used immediately for internet shopping. However, if the applicant is refused based upon the information he or she provides, the refusal can count against their credit score.

A variant of these cards are those that are issued to all applicants. These can either be secured credit cards, which are secured against an asset such as a house or deposit account, or a high interest credit card, charged because they’re popular with  people who have credit problems and therefore a higher risk of default.

Store cards are another type of instant approval credit card. These are applied for and given out inside the store within a short amount of time, using very few credit checks and therefore carrying a high interest rate. These cards are often accompanied by an offer of a free item or a heavy discount on the first purchase.

There are also pre-approved credit cards, where a financial institution – usually one which already has a relationship with the person as an account holder or borrower –offers a credit card with a certain credit limit on the information already obtained.