Instant approval credit cards seem to have gained popularity in recent times. Although the annual percentage rate (APR) is higher than the normal credit cards, a majority of the American population is opting for these cards due to their poor credit history. On an average 1 out of 5 adults preferred instant approval credit cards in spite of the fact that the APR was higher.
These cards come as a boon to consumers who have bad credit. These cards offer instant approval and are designed for consumers who have a poor credit score. It is an easier way to get ones credit score back on track.
However, there is a point to be noted here. "Instant approval" credit cards also have some limitations.
Sometimes these cards will not allow access to your full credit line immediately. Especially, in cases where there is a "flag" in your credit file, then you may get a conditional approval until your credit reports are analyzed further. In such cases, there would be a delay of a few days.
In cases where consumers get instant approval, they would be given limited access to the credit line and will have to wait until the card arrives. However, on possession of the card one can avail the full line of credit.
Sometimes, instant cards offers cash rewards as well as incentives under their rewards program. These would include cash back or air miles etc. One should first determine whether there is a time frame to redeem the reward points. It is important to know if there is an expiry date as well.
Even in cases of instant approval credit cards, monthly reports are provided to the credit bureaus wherein credit history of millions of the American population is maintained. As mentioned earlier, one can improve one`s credit rating with the card companies by making prompt payments every month. This would help in strengthening the credit score which would eventually be useful when one applies for a regular credit card. A majority of the card issuers are available under this category, such as, MasterCard, Visa, American Express, Discover etc.
In most cases, people prefer to choose a card for a particular purpose for instance, a specific need such as buying a new car or paying for a trip abroad etc. In such cases, it is always better to use the specialty cards offered by automakers or the ones offered by any airline. Flexibility can be maintained by opting for any of the major cards which offer many more options as; major cards usually cover airline booking, hotel, and car rentals etc.