Instant approval credit cards offers are very popular these days, and with online application so easy, who wouldn’t want to get started spending right away? Instant approval, instant decision, and guaranteed approval cards vary slightly and you should know what each term means before applying. You might think they are all the same; however, before you reach for that mouse and start clicking away, you should know the ins and outs of instant approval credit cards. And in truth, instant approval doesn’t translate into using your credit card right away, unless you apply in a retail store. You will have to wait 1 or 2 weeks before your actual card arrives in the mail. 

All instant credit offers entail filling out an application that requests information including name, address, social security number, etc. Once you submit the application online, the credit issuer or bank will use that information to determine if you are approved and what your credit limit will be. Instant approval means that the company has approved you for credit based on the information contained in your credit report. People with excellent credit are generally approved immediately, while others with good to Needs Some Improvement may have to wait for the issuer to process their application due to recent information changes or high debt ratios. So, instant credit approval can be misleading if you don’t read the fine print contained in the terms and conditions.

Instant decision credit card offers differ slightly in that the issuer will make an immediate decision, but it may not be the one you want! The credit card company can instantly approve or decline your application based on your credit history, and if they see inconsistencies in your information, they may inform you that further processing is necessary. Guaranteed approval works the same way, because not all applications will be approved instantly, if ever. 

Companies get around this misleading statement by telling you to read the terms and conditions, which contains a clause stating that some people may not qualify and the company has the right to refuse credit if you don’t meet their criteria. This little tidbit is buried in the fine print, so if you don’t read their terms and are turned down, you have just affected your credit score in a negative way. Remember to always read the terms and conditions before you apply and shop around for the best deal. Don’t let the temptation of instant credit instantly fool you into a bad choice.