According to the Canadian Bankers Association, more than 89 percent of all Canadians of legal age have at least one credit card and it is no surprise why. Many Canadians use credit cards to manage their finances. Credit cards deliver the financial freedom necessary to take full advantage of today’s diverse lifestyles and priorities. Although different credit cards offer different benefits, they are generally convenient, earn you points or rewards and can help you build your credit score.
Before you apply for your credit card, there is still a lot to think about. On top of all the benefits, perks and fees, it is important to gauge your chances of getting approved and the duration it will take. Fortunately, there are credit companies that will instantly inform you whether you have been approved. However, instant approval does not mean that you can access the credit line immediately. Here are other things you need to know about instant approval credit cards before you apply for one.
What are Instant Approval Credit Cards?
Credit cards with instant approval offer you the opportunity to get approved shortly after submitting your application. However, not all people can get instant approval. If you have strong credit and financial credentials, you have a higher chance of getting instant approval. A person with less than perfect credit and financial situation, on the other hand, might have to wait for longer to get a response from the issuer. In a way, the duration you have to wait to know whether you have been approved depends on your credit and financial situation. If the issuer needs more information or the credit analyst needs more time to evaluate your application before giving a response, you might receive a pending application status in the meantime. However, each issuer has their own unique process and procedure.
Types of Credit Cards Offering Instant Approval
For a long time, store credit cards have been the best example and most popular types of credit cards with instant approval. For these cards, you typically apply at the checkout area where you are either approved or denied instantly so you can complete the transaction. However, these cards typically have high-interest rates and may only allow you to purchase specific brands.
Times have now changed and thanks to online credit cards application and advanced algorithms, it is now commonplace for a majority of credit cards to offer instant approval.
Secured credit cards are another type that may offer instant approval. However, they require you to put up a deposit where your credit limit then matches your deposit. Consequently, this limits the amount you can access in credit.
Prepaid debit cards are in some cases marketed as instant approval cards. However, these cards only allow you to spend the money you put up on the card and do not extend a line of credit.
Difference Between instant Approval and Guaranteed Approval Credit Cards
Note; even though a card offer borrowers the chance of instant approval does not mean that every application is guaranteed approval.
On the other hand, despite their name, guaranteed approval credit cards do not necessarily guarantee that every application will be approved. They still have qualifying requirements that you need to meet.
Why Are They So Popular?
They provide quick access to credit for people in a financial bind. In some cases, the issuer may require you to wait for the physical card while in others, you can use the details or an app to make online purchases immediately.
What are the Approval Requirements?
As with most decisions regarding credit, and holding everything else nominal, a person with a higher credit score has a higher chance of loan approval. However, some instant approval cards such as secured credit cards also approve people with bad or not credit. The key here is to carefully read through the terms of the individual issuer to understand their minimum requirements. Alternatively, you can research whether you are preapproved for the card you want from the issuer’s website – if they have that service. If you find all this daunting, you can get help from professionals.
Let Bonsai Finance Help You
At Bonsai Finance, we are fully committed to helping people achieve financial freedom and security buy connecting them to the most suitable financial solutions in the market. Our team of highly experienced experts apply their technical knowledge and our cutting edge technology to advise you on the financial solutions such as instant approval credit cards that best suit you. Contact us today to learn more on how we can help you achieve financial freedom.
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Instant Approval Credit Cards vs Guaranteed Approval Cards
Pros and Cons of Instant Approval Credit Cards
The Basics of Credit Cards Canada Instant Approval