Applying for a credit card used to be a time-consuming process. Nowadays many card companies use Internet technology to allow consumers to apply online. Robust systems and connections with credit referencing tools also allow many to make an instant decision on applications. What are instant decision credit cards and how does the process work?
What are Instant Decision Credit Cards?
These credit cards aren’t themselves any different to other cards. They do the same job, come with the same features and benefits and may have a variety of offers and deals attached to them. The difference here is all in the application process.
By applying online the consumer can fill in their details, submit their application and get an answer back in a short space of time. The traditional route of filling in a form and then posting it off to be checked used to take weeks. Today’s technology means that the application can be logged and assessed in a few minutes or even, in some cases, in less than a minute.
How Does the Instant Decision Process Work?
Financial institutions need to have robust, speedy and secure systems generally. One of the advantages of having this kind of technology in place is that it allows the automated processing of information extremely rapidly. Typically, for example, an online credit card application involves:
- A consumer fills in an online application form and submits it.
- The card company’s system receives the data and checks it.
- A credit check is run on the applicant to assess their credit score.
- A decision is made on whether to approve or decline the application and the consumer will then be notified.
All being well this could take just a matter of seconds or minutes.
Does Everyone Applying Online Get an Instant Decision?
In some cases an application may not be given an instant decision and it may need to be referred to an employee to be checked out. Occasionally the data or the credit check throws up flags that need to be looked at. This will add to the time involved in getting a decision.
Things to Consider Before Applying for an Instant Decision Credit Card
Before making this kind of application it may be worth remembering that:
- An instant decision does not equal guaranteed acceptance. Those worried about their credit history may want to avoid impairing their record further by talking to the card provider first to assess their chances of approval. In some cases they may be better off looking at guaranteed acceptance credit cards or bad credit products if it turns out they are unlikely to be approved for standard options.
- It is still important to compare interest rates and deals before making an application. This can be done quickly by using online credit card comparison sites that bring together details of many different cards (including those with instant decisions).
Finally, bear in mind that an instant decision on a credit card application may be quick but things may then slow down a little. It’s also worth checking if the card provider will allow for their agreement to be signed online or whether it will need to be posted as this can add to the overall time it takes to get a card.
Carol Finch - Carol Finch is the Topic Editor for Retirement Planning, Budgeting, E-Commerce & Technical/Business Writing on Suite101.
Join the Conversation