A Primer on Instant Decision Credit Cards
The process of applying for a credit card can often be a long once.
After the application form has been filled in (a time-consuming task in itself) consumers are often left waiting to hear whether they’ve been accepted for weeks at which point they may not have time to complete the process.
For this reason, instant decision cards are proving increasingly popular, particularly for consumers with a blemish-free borrowing record.
Instant decision cards can also have the advantage of encompassing a whole range of standard plastic card types.
For example, some 0% balance transfer card offers are available through an instant approval process which could potentially save those who are paying high-interest debts on other credit cards money in the long term.
Finally, since instant decision credit cards tend to use the major credit reference agencies – such as Equifax – to make their decisions, it can be easier to predict the lender’s decision than with a traditional online card application.
This is because consumers are able to view these credit records themselves.
Obviously, this is still not as fair a system as allowing consumers to view the credit cards that they are eligible for before making potentially harmful applications in the first place but it is an interesting loophole.
The ‘instant approval’ or decision process runs online application forms through a bank or building society’s secure servers to check the credit worthiness of the applicant in a matter of minutes.
The personal information of the applicant is highly encrypted – shielding their details from hackers.
Successful applicants for instant decision cards are generally over 18, on the electoral roll, with a functioning UK bank account and a clean bill of credit health.
For this reason, instant approval cards whether for borrowing or special offers are not – as is sometimes claimed – a quick way for those with poor credit ratings to borrow money quickly and ill-advisedly.
In fact, since rejected online card applications can have a negative impact on a credit file, instant decision cards should only be considered by those who feel that they fit the lending criteria for the credit card that they are applying for more than adequately.
In all, although applying for instant approval cards is meant to be easy consumers should be aware that a lack of preparation – in particular, ensuring that they meet the lending criteria – can backfire.
However, instant decision cards to cover a wide range of credit card types and are an excellent way to budget for some consumers.
