Pros & Cons of Instant Approval Credit Cards
Within minutes, instant approval credit cards allow someone to start using a credit card after providing some basic information. Credit cards with instant approval can be an excellent tool in your financial wellness arsenal, but how do you know whether or not it’s right for you? Let’s take a look at the pros and cons of instant approval credit cards, so you can decide for yourself if applying for one is the right financial choice for you.
(Almost) Instant Use if Approved
Most instant approval credit cards will let you know if you’ve been conditionally approved in a matter of minutes, sometimes seconds. Some cards will even provide account information before a physical card arrives in the mail so that you can start making purchases soon after being approved. For those that are in need of quick financing, this instant access to funds can be incredibly helpful.
Can Improve Credit
If you’d like to make your credit score a little more robust, applying for and being accepted by an instant approval credit card can help to boost your score. Credit card issuers report your account and activity to national credit bureaus, and showing that you’ve been approved can help to increase your score. If you use the card to make purchases and pay off your bill on time each month, this can lend additional credence to your credit score.
More Accessible Credit Card Options
Instant approval credit cards can be a good option for those that may not otherwise be approved for a credit card through a traditional application process. For those with low or no credit, applying for one of these cards is a good option to begin building a stable financial foundation.
Sometimes, extenuating circumstances lead to delays in the approval process for credit cards, taking away the attractive option of instant approval altogether. These delays may only be as long as a day or two due to the review process of the information that you provide for the card. Other times, these delays may be longer, especially if you are someone with low or bad credit.
Not For Everyone
While credit cards can be a great tool to help build credit and act as a financial wellness tool, they are certainly not for everyone. If you are already in debt from other credit cards, applying for another one is not a good idea. It can also be detrimental to those who regularly make late payments, as this can negatively affect your credit score. Additionally, those who do not make a habit out of saving should think twice before applying for an instant approval credit card, as this may only encourage the spending of money that they do not have.
Can Negatively Impact Credit
Applying for too many instant approval cards in a short period of time can negatively impact your credit. Knowing this, experts suggest that you should wait at least 90 days between credit inquiries so that these checks do not bring down your credit score.
There’s no shortage of credit card options on the market to choose from. Could an instant approval credit card be the best choice for you? There are many factors to consider when deciding on the right card, and depending on your personal financial situation and goals, an instant approval card may be an effective way to improve your financial wellness.