Instant Approval
For people trying to rebuild their credit, obtaining a credit card with reasonable terms has always been a challenge, which is why we have written in the past about the benefits of secured credit cards as a practical alternative. Lately, there has been a proliferation of credit card promotions offering instant approval for people of all credit standings, including those who may have been denied credit in the past. Instant approval offers are tempting because you can simply go online, fill in a brief application, submit, and, bada-boom! You have your answer. If you don’t like the answer, you can simply move on to the next offer and try again. And, therein lies the problem.
In the past, anytime you submitted an application for credit, even those zippy instant approval applications, an inquiry is made on your credit report. When your credit report shows more than one or two inquiries made within a six month period, it lowers your credit score. That may be changing, as at least two credit card issuers, Capital One and Credit One Bank, have introduced instant approval cards that don’t require a credit inquiry, leaving your credit score unscathed.
So, with that, does it make more sense to apply for an unsecured, instant approval credit card, or a secured credit to meet your credit needs? In our recent article, Best Card to Build Credit? Secured Card vs. Debit Cards, we compared secured cards with debit cards making the case that, with secured cards you can build your credit score and have many of the same benefits as an unsecured card. But the secured card requires a deposit, and, typically, their rates and fees tend to be higher than unsecured cards. They can also be laden with hidden fees that can drain your secured deposit.
In many cases with instant approval cards, you never know what you’re going to get in terms of the APR or your credit limit until you apply. Obviously, the better your credit score, the lower your APR will be. Also, instant approval cards, especially those geared to people with less than perfect credit, charge higher annual fees. The problem with these offers is you can’t always see all of the fine print until after you apply. However, that is not the case with the Credit One Bank and Capital One instant approval credit cards. Their APR, fees, and limits are clearly stated on the online form. Furthermore, with the ability to get an instant response to your application without it affecting your credit score, you won’t be any worse off if you’re not approved.
Capital One now offers instant credit approval (60 seconds) for a MasterCard with no processing or application fees. You receive all of the benefits of their standard cards, including $0 fraud liability, 24/7 account access, and automatic reporting to the three major credit bureaus. The APR ranges from 10.90% to 24.90% depending on your credit history.
Credit One offers an instant approval credit card with credit lines up to $1,500 based on your credit history. There are no enrollment fees or over limit fees. The APR is currently 23.90% and it charges a $75 first year annual fee ($99 thereafter).
Instant Credit Card Approval
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