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Differentiating Instant Approval Credit Cards
24 Apr 2019

Differentiating Instant Approval Credit Cards from Guaranteed Approval Cards

Did you know that you do not have to struggle to get a credit card or have to wait for long to get one? Instant approval credit cards are available and have simplified the process.

Instant approval credit cards are the cards whereby you get a notification of approval or rejection immediately after application. Traditionally, one had to wait for at least two weeks for a card to get approved. The card would then be sent to you so that you could start using it. Sometimes it could take longer than two weeks depending on the company to which you made your application. With the instant approval credit card, however, all you have to do is make your application physically or online and if all your details check out, you get a temporary number which you can use to make purchases or pay for your bills before the card gets to you. Depending on the company, you might get a temporary number that you can use to make your purchases immediately, however, most cards will require a certain amount of time to be activated. Therefore, if you are looking to use your credit card immediately, it is advisable to check this before making the application.

Are instant approval credit cards the same as guaranteed approval credit cards?

This is a question most people will ask. Others will use the terms interchangeably, however that should not be the case. As already seen, instant cards are those that you receive a response immediately after application. What makes them different from the guarantee cards is that the response can be either positive or negative. You may have all the qualifications needed for the card but other factors come into play when it comes to getting positive feedback.

Guaranteed approval credit cards, on the other hand, are the cards where you are assured of getting the credit card and time is not a factor when applying for them. They can be approved immediately or take some time depending on the amount on the credit card you applied and other factors within lenders control. In addition, guaranteed approval cards may require you to fulfill a number of requirements which as compared to instant approval cards, might be tough to achieve. For example, you might be required to have an impeccable credit score which may not be a requirement when applying for an instant approval credit card.

Types of instant approval cards

  1. Secured credit cards These are the cards which require you to put a deposit when applying. This deposit is usually equal to the credit limit of the card you get. Therefore, approval or denial of these cards is dependent on your ability to make the deposit in most cases. The limitation to these cards is that you cannot extend your limit by paying the amount in full. The only way you can do so is by depositing a larger amount of money.
  2. Store credit cards These are perennial credit cards that are applied at the point of sale. You get an instant approval or denial response immediately, therefore you do not have to wait for weeks to know whether you will get one or not.  These cards, however, have two limitations; they have high-interest rates and one may be allowed to purchase only in specific stores or particular brands.
  3. Online instant approval cards – These are the cards you make applications online. This is done through lender’s websites and with success you get instant notification on your email whether your credit card application has been approved or not. Thanks to technological advancement, even the traditional lenders have ventured into this.

What to consider when getting an instant card

  • Your ability to improve your credit score should be your number one priority. Almost all credit cards are considered a good way of growing your credit score. When getting one, consider your ability to pay the loan as it is the only way to improve the score with the card.
  • The interest rate charged. Your main focus should be on how much interest you will be paying when you get the card. This is the way to determine if you will be able to improve your credit score and eventually qualify for other loans.

Choosing the right instant approval credit cards is a decision that needs a lot of consideration. It can lead to your financial freedom or a loan cycle from which you will never be able to break free. Whatever card you choose, make sure it suits your needs and that you can comfortably pay the interest rates. If you need assistance in getting the right credit card, contact us today and we will guide.