There are numerous things you have to consider before choosing and getting a new credit card. From annual fees, reward types and interest rates, the list might be long. It would as such make sense if you knew right away if your application was approved. Fortunately, you can score an instant approval credit card from numerous companies. The following guideline shows how such instant approval works.
What is Instant Approval?
It is when the credit card issuer lets you know whether they have approved your application as soon as you make the application. This is advantageous because you get peace of mind after knowing their decision. You do not have to rush to your mail each day hoping to get the card. Neither do you have to guess or hypothesize if your credit score was great enough or your income sufficient.
How Does It Work?
With most credit card companies, all you have to do is to go into their site and make the application. After you enter your details, they will review your credit file. They will also ask you some questions to confirm your identity. They will want to know your age, residential status, and information on other credit cards you may have.
Once you answer all the questions the credit card issuers ask truthfully, they let you know there and then whether they approve your application. They might still ask you to verify your income source, the amount you earn, and verify your other financial details. As such, instant approval does not explicitly mean that you will get the credit card. However, it allows you to know whether you pass to the next stage.
Is It Safe?
With the increased rate of cyber threats, you might be reluctant to provide your financial details online. However, as long as you apply directly on the credit card issuer’s website, your details will be safe. Such companies normally use 128-bit encryption to protect your personal and financial data. You should ensure that the website is verified or secure by virtue of having the “https” format.
Why Consider Instant Approval Credit Cards No Credit Check Canada?
There are financial institutions that offer instant approval credit cards no credit check Canada. These cards are commonly called “guaranteed approval” credit cards. They are ideal if you have a history of missed or late payments, delinquencies and excessive borrowing. As your credit score might be low, lenders normally consider you to be a high-risk borrower.
The advantages of these cards are:
- They offer an opportunity for you to establish a great credit rating when you have less than perfect or no credit history
- They have more lenient or minimum application requirements making them ideal for you when you have no other alternative
- Since the lenders never take a look at your credit rating, your credit score remains intact. This is advantageous when you already have poor credit and do not want to lower your score further.
Credit Card Options when you have No Credit
Most credit card issuers check your credit score to verify if you can afford the card you apply for. As such, it can be tricky to get a card when you have zero credit history. Does that mean that all hope is lost? Certainly not. There are some other options you could look into such as:
- Secured credit cards. This card is normally guaranteed by a cash deposit equal to or twice your credit limit. They are easy to get because the lender takes zero risks and you can get one even without a verifiable source of income.
- Student credit cards. These cards are designed for students meaning that they charge lower interest rates and attract zero annual fees.
- Store credit cards. They are easy to get largely because they are only accepted by the branded retailer. They also feature high-interest rates and a first-purchase bonus.
What Should You Do If Your Credit Card Application Is Rejected
In the very unlikely event that your instant approval credit card application is rejected, avoid making another application straight away. Such can dink your credit file if you do not specify that you need a guaranteed credit card. You should rather try the following:
- Review the eligibility requirements
- Contact the credit card provider to seek clarification
- Spend time improving your credit score
- Make another application after several months
You can access instant approval credit cards no credit check Canada from a wide pool of financial institutions. At Bonsai Finance, we connect you with leading lenders so you can be sure that you are choosing from the best lender in Canada. We also offer valuable information on personal finance to help you achieve financial security. Connect with us today to learn more.