| By :
Liz Roberts
Copyright (c) 2010 Liz Roberts Instant approval credit cards have become more popular these days. Every day, more and more people are applying for this type of credit card. However, making decisions without weighing the consequences can lead to a more serious dilemma. But who can say no to a fast and simple processing of application? The key is to carefully study and assess each offer presented to you. Try to compare each card with your personal needs and lifestyle. 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. Once your application is approved, your card will be then sent to you through postal mail which usually takes approximately five to seven days 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. Be sure to ask your chosen Issuer if they report 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.
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