Why Credit Card Instant Decisions May Not Be Worth Your Time

Finding the appropriate credit card can be difficult when there are thousands of extremely different choices. Once the most suitable card is found, there is added stress in going through the application process. Instant decision credit cards are designed to alleviate the extra stress from obtaining a credit card. With automatic approval or denial, customers are immediately aware if they will be receiving the card.

Benefits of Credit Cards With Instant Decisions

The obvious benefit of instant decision cards is the quick decision time. Regular credit card applicants can expect to wait at least a week for a decision of approval or denial. Under peculiar circumstances, the application could take up to several weeks for approval. For some consumers, a long wait period can mean additional stress. With instant decision, consumers can spend less time worrying about their application.

An immediate decision also means relatively speedy access to credit.

Quick access to money is one of the major benefits of instant decision credit cards. Imagine being out of the country and all current credit card accounts become suspended due to foreign activity. Perhaps the only way to purchase a train ticket out of the country is with a credit card. In this situation, a quick decision card works perfectly to save the day. Ultimately, these credit cards come in handy during emergency situations. Other common emergencies may include sudden medical bills, automobile repairs, or home repairs.

Drawbacks of Credit Cards With Instant Decisions

Typically, instant decision credit cards are attached to larger annual percentage rates. Companies are potentially offering instant approval and the consumer gets to pay for this benefit. Higher interest rates could cost the consumer thousands of dollars over the lifetime of a card. When searching for an instant answer card, make sure to complete detailed comparisons of the different options.

Instant decision cards come paired with relatively easy applications. Easier applications encourage potential consumers to complete more applications. However, applying for multiple credit cards at once can hinder approval. Each time an application is sent in, the consumerÕs credit score drops. The credit score plays a massive role in the computer-driven decision of approval or denial.

Do Computer-Based Systems Help the Consumer?

Computers are the only decision makers handling instant answer card applications. The decision is calculated using a predetermined algorithm. Due to this method, consumers may suffer if their financial information is not precisely entered into the computer. Furthermore, computer-driven decisions may overlook complex human situations. High incomes do not necessarily automatically qualify a consumer for an instant answer credit card. The computer may decide that previous debts outweigh a large income. Other factors may include car payments, loans, home mortgages, outstanding credit cards, and miscellaneous financial obligations.

Sometimes a human touch can help get the consumer approval. Even it takes a couple extra days, receiving a decision of approval over denial makes the additional time worth it.

Is It Really Instant?

Instant approval may not mean instant access. After receiving approval for the card, it still takes time for the card to become operable. There will not be a card in the consumer’s name instantaneously. The card needs to be mailed to the consumer. Furthermore, the credit company will need signatures and completed contracts before the card can be used.

Are Instant Decision Cards Economical?

Consumers have to weigh for themselves if they benefit from an instant decision credit card. Just because the decision is quick does not mean the consumer will be more likely to receive approval. Multiple applications after denials from other cards may mean a significant impact on credit scores.

The increase in percentage rates for instant answers is something consumers must seriously consider. In emergency situations, the instant approval is beneficial so that the consumer can obtain quicker access to credit. However, customers who are able to wait a few extra days may save hundreds of dollars during the first year of card use.

Overall, instant decision credit cards are a useful tool. Nothing about them is significant enough to scare consumers away from them if that is what works best for them. As with all cards, potential customers should do the appropriate research before signing any contract.

 Sam Jones the author of this article was  talking to his neighbour who was in financial difficulty  and advised him of information available at http://www.uswitch.com/credit-cards/instant-decision-credit-cards/ regarding instant decision credit cards.

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