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By Rachel Preece
Staff Writer, 23 June 2008
WITH an instant decision credit card, you provide your personal details and submit them using an online form. Using your credit score, software can process your details to offer a decision on your credit card application within minutes.
Online instant decision credit cards are suited to those with busy lives; for those who don't want to spend hours filling in time-consuming forms by hand.
However, it is important that although the technology offers an easy way to get a credit card, you should shop around and compare the instant decision credit cards available before rushing into applying for one.
Moreover, a lot of credit card companies will offer instant decision credit cards and so the normal ways to compare credit cards still apply - rates, rewards etc.
How is an instant decision provided?
Banks and building societies run their application forms from secure servers, safe from hackers, so that customer protection is guaranteed. The bank or building society use software, which lets them analyse your credit score immediately, and which helps them make a decision within seconds, rather than waiting for the usual 2-6 weeks to hear back from the credit card issuer. American Express boasts that their system can give a decision online in under six seconds.
In some cases, the bank or building society may require additional information, or may need more time to analyse the credit score, and then you may not receive a decision until around ten days later, but in the majority of cases, an online decision will be made within minutes, sometimes seconds.
What information is looked at to arrive at the online decision instantly?
To help banks and building societies come to an instant decision, you will normally have to enter various personal details, and these include:
- Personal information: Title, name, contact details
- Address: Current and previous addresses, including length of time at each address.
- Employment details: Place of employment, salary, job details and contact information.
- Finances: Current bank account details and your financial status.
What other technologies do issuers now use to speed up applications?
Banks and building societies normally use a company such as Experian, TransUnion or Equifax, who compile credit reports which reflect your personal financial history. The software can then automatically analyse your financial details and provide a near immediate response.
Issuers will also offer online signing of credit agreement forms, which eliminates the need to send the agreement out in the post, and cuts the amount of time it takes you to receive your credit card.
In order to ensure that your details are secure, credit card application forms utilise SSL technology, which encrypts your information, so that it can only be read by the bank or building society in question.
Exactly how long it will take for you to receive your credit card will depend upon the issuer and the application technology and processes they use. However, a good rule of thumb is to allow around 10 working days to get your credit card after you've been accepted.
What offers are available on instant decision credit cards?
There are many offers available on instant decision credit cards. The instant decision itself depends on the issuer’s own levels of application technology.
You can get instant decisions on all sorts of offers, including balance transfer credit cards, cash back credit cards and 0% credit purchase cards. Click here to compare instant decision credit cards.
Why should you compare instant decision credit cards?
Before you apply for an instant decision credit card, it is a good idea to compare all credit cards on offer first. As attractive and as convenient as an instant decision is, it's still important to make sure you are applying for a credit card with the best offer you need, be it a 0% balance transfer deal, 0% purchase offer or certain rewards.
It is also vital that you shop around and compare deals before applying for instant decision credit card to make sure you are applying for the one you really want - and that will meet your financial needs.
Each enquiry you make has the potential to damage your chances of getting a credit card – multiple applications can signal fraudulent activity and it can appear as though you are attempting to borrow large sums of money at once. Consequently, it is best to do your research and commit to just one application.
How do you compare instant decision credit cards?
When comparing instant decision credit cards, remember to look closely at interest rates, features and long-term benefits and rewards.
It may be worth waiting and applying via mail, to get a credit card that meets your specific needs. It cannot be stressed enough that you should look closely at what each credit card offers, rather than jumping in by the prospect of an instant approval credit card.
Remember to compare credit card features such as the standard APR or interest rate – this is what you will be charged for outstanding purchases on your account, compare any offers that you might need, for example if you have current credit card debts you might want to compare instant decision credit cards for a 0% balance transfer offer.
Check all the rates and fees associated with the credit card before you apply – know what rate you will be charged for purchases, balance transfers if you need to move an existing balance, use abroad if you tend to use your card overseas, as well as any annual fee that might be charged.
Also when you compare instant decision credit cards look to see if the card is suitable for your personal financial situation. If you know yourself to have a poor credit history it is probably worth choosing a card that’s designed to help you improve and strengthen your credit score.
Who is likely to get approved for an instant decision credit card?
To apply for an instant decision credit card, it is important to remember that you must be over 18 years old, be on the electoral register, have been a permanent resident of the UK for at least one year and hold a current UK bank account.
Good to excellent credit rating is generally required in order to apply for an instant decision credit card, and issuers naturally offer the best deals for people with excellent credit ratings, but there are some instant decision credit cards available for those with a poor credit history, for instance the Capital One Classic credit card.
In most cases, your application will be accepted or rejected within minutes, but there are occasions when your application will need to be referred to a member of staff at the bank or building society to analyse your details more closely.
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