Before applying for an instant approval credit card, consumers are warned against making hasty decisions.  Since the application process is so quick and easy, you’ll want to spend more time in evaluating what each card offers and compare it with your personal needs and lifestyle.

What Are Instant Approval Credit Cards for Bad Credit?

For people with a high credit score, getting approval from the best unsecured credit cards in the market should not be a problem.  Nonetheless, for those with a history of bad credit or with a low credit score, they can count on instant approval from credit card companies that offer secured cards or bad credit credit cards.

Secured credit cards are also known as “credit cards for bad credit” or “credit cards with instant approval” because anyone can get approved regardless of his/her credit rating.  However, the applicant will be asked to submit a security cash deposit.  Thus, in case of default, the Issuer can tap in the cardholder’s account and use the security deposit to pay off the charges.

Instant approval does not mean you can expect to get a credit card on the same day you submit your application.  After submitting your application online, you can get a response from the Issuer within minutes.  If approved, your credit card will be sent to you through post mail and may arrive in your doorstep within 5 to 7 banking days.

The Do’s and Don’ts

It is important to note that your interest rate may also depend on your credit score.  Although you are guaranteed to get an approval, your APR will still be based upon your rating.  Therefore, it is still recommended that you check your credit report before applying for an instant approval card.

Should you find errors in your report, do send a dispute letter to the bureau that issued your report and request for corrections.  Improving your credit score even by a few points can significantly reduce your credit card’s APR.

Never sign up without reading the complete Terms and Conditions.  Pay attention to the interest rates as some cards may impose three different APRs on purchases, balance transfer, and cash advances.  Although the new credit card law restricts credit card companies from increasing their rates without warning, you may find yourself stuck in bad deal if you do not check the fine print.

In addition, do not submit multiple applications to different Issuers just to see which one will give the quickest response.  Doing so will result to too many inquiries in your credit report and may only do more damage to your credit history.

Is it A Wise Choice?

Should you apply for an instant approval card?  When used correctly, instant approval credit cards can be great tools for rebuilding bad credit history.  Find a secured credit card that will report your payments to major credit reporting agencies (Equifax,TransUnion,Experian).  This way, as you use your secured card for paying bills or making purchases, you are also improving your credit score one step at a time.

About the Author
Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. NHBS also has a list of recommended Credit Cards for Bad Credit.
Copyright 2010.