Instant Credit Cards - Instant Gain?

Posted by Nick Niesen on October 29th, 2010

Tempted to grab those instant credit cards at the checkout counters of your favourite stores to get those cool discounts? Before you sign on the dotted line, you may want to read the fine print. Some companies offering instant card approval may not be packing as much punch as they seem to promise and saving a few bucks today with some of these offers may end up costing you quite a few more than you bargained for. But with so many options out there, there are still quite a few instant credit card approval offers that might still make sense for you.

What Are Instant Credit Cards?

While many credit card companies take time to process your application before the card arrives at your doorstep with instant credit cards, you can qualify for the card almost immediately. You can find them at retail checkout counters, department stores as well as online. And we should not forget about the never ending stream of offers received via regular mail from credit card companies pitching hard for their latest offering.

Downside Of Instant Card Approvals

Setting aside the immediacy of an instant credit card approval, there are significant pitfalls of instant card approvals to be aware of. A common misconception regarding instant card approvals is the notion that you will gain instant access to credit. The instant approval process is a filter that merely qualifies card applicants for the application process. But you still have to fill out a card application and go through the approval process like anyone else. With an instant approval, you qualify for the application process but not necessarily the card itself.

Instant credit cards can also carry higher much interest rates than traditional card offerings in the marketplace. In such cases, the card will end up costing you more money in interest than you gained in benefits. Unlike traditional card offers that currently exist, some instant credit cards will not offer an introductory interest-free period at all. And similar to traditional credit cards, the people most likely to get instant credit card approval are those with good credit histories. Instant credit cards will require an inquiry about your credit history from at least one of the major credit bureaus so make sure not to attempt to gain approval for multiple instant card approvals at once as too many credit inquiries at the same time can adversely affect your credit rating.

If you thought instant approvals were to good to be true, you may have been right. But that is no reason to throw the baby out with the bathwater. Spend some time researching various instant credit cards and compare them side by side. You can find a solid instant card approval offer with very competitive rates of interest, attractive rewards programs, balance transfer features and more. And while these type of benefits are not necessarily typical with instant credit cards, they are available, and with a little bit of effort, you can locate some very attractive offers.