Instant Credit Approval Credit Card? Is This A Smart Choice?

With the growing popularity of instant approval credit cards

, more and more people are enticed with its advantages. However, some hastily apply for the first available offer that sometimes causes bigger problems. Application and approval is as easy as 1-2-3 but if you want to avoid making a terrible mistake, be sure to spend enough time in assessing and comparing your possible options. Considering your personal needs and lifestyle are some of the factors you will need to take in consideration before choosing the right card for you.

What Is An Instant Approval Credit Card for Bad Credit?

With regards to people with a high credit rating, obtaining approval from one of the best unsecured credit cards available in the market should never be a dilemma. On the other hand, individuals with a history of bad credit or possess poor credit score can apply for instant approval secured cards or bad credit credit cards that are now being offered by many credit card companies.

Secured credit cards are also referred to as "credit cards for bad credit" or "credit cards with instant approval" since anyone can easily get approved no matter what his/her credit rating is. However, an applicant must submit a security cash deposit. Once a credit card holder defaults payments, his/her card Issuer is given the right to tap into the cardholder's account and take the security deposit to pay off the balance.

Quick approval does not necessarily mean you can get and make use of the credit card the very same day you have applied for it. Once you have submitted your application online, the Issuer will send you a response immediately. When approved, your credit card will be delivered to you via post mail within five to seven banking days.

Things to Keep In Mind

The interest rate may vary depending on your credit score. Even though this type of credit card offers a guaranteed approval, your APR will still depend on your score. This is the main reason why checking your credit report is essential before submitting any application especially if it is for an instant approval card.

If you find errors in your report, you must inform the issuing bureau about this. Send them a dispute letter and ask for corrections. An increase in your credit score, even by just a few points, can affect your APR.

It is not wise to just sign any contract or document without reading and fully understanding the Terms and Conditions. Look closely at the interest rates since several cards may impose three different APRs on purchases, balance transfer, and cash advances. Even if the new credit card law warns credit card issuers about increasing their rates without any notice, you might find yourself trapped in a bad deal if you will not take time to understand the fine print.

Furthermore, never submit multiple applications to various Issuers just because you want to see which one will provide you an immediate response. Too many inquiries can cause damage to your credit history so it is best if you will refrain from doing this.

Is This A Smart Choice? Should you apply for an instant approval card? When used in the right way, an instant approval credit card is actually a great tool to use when repairing a bad credit history. Make sure that the secured credit card you will choose reports to the major credit reporting agencies (Equifax, TransUnion, Experian). By doing this, you can improve your credit score each time you are using your card to pay bills or make purchases.

Copyright (c) 2010 Liz Roberts

by: Liz Roberts

POST COMMENT

Loans For Bad Credit - Get Loan Without Any Trouble Unsecured Personal Loans Bad Credit - Get Money Without Any Collateral Car Loans for People with Bad Credit Decoding Your Credit Score Mortgage Loans for Bad Credit Bad Credit Loans Instant Decision- Quick Support No Credit Checks Instant Loans No Credit Check: Loan Without Credit Check And Documentation No Debit Card Loans: - Payday Loans No Debit Card Short Term Loan No Credit Check How You Can Improve Your Credit Score Prepaid Credit Cards: The Easy Way To Make The Payment The Lowdown on Low Interest Price Credit rating Playing cards Find An Embosser Machine For Credit Cards Taking Charge Of Your Zero Interest Credit Card