Applying for instant decision credit cards is designed to be convenient, fast and simple as opposed to a regular credit card. However, it is probably worth a short wait considering many instant decision credit cards with typically charge a slightly higher interest rate for the privilege of an on-the-spot approval. Furthermore, if your credit score is too low or there are any questions about the information on your application, chances are you will be declined immediately.
Although a slightly higher interest rate for the perk of receiving an answer right away on your approval for a credit card might not seem like a lot, the resulting charges can add up to a lot of money over the long term. Even a small increase of a couple of percentage points can translate into hundreds of dollars, making it even more difficult to pay off the principal.
A high income does not guarantee a positive answer when you apply for a credit card that offers an instant decision. The decision will depend not only on your income, but your debt load. This means if your financial picture already includes a mortgage, a car loan, 0% balance transfer credit cards, child support and other financial responsibilities, the credit card company may decide in spite of your high income you cannot handle another drain on it.
An answer immediately has a lot of appeal for quite a few reasons. In the case of an emergency, an instant decision credit card could make a big difference. It is important to be aware there will be a price to pay for the convenience, and you must determine if it is in your best financial interest to apply for this kind of credit of if you can possible wait for an approval through a regular application. These days, it can take as little as a week to ten day to receive approval for a credit card, especially if you handle the application online. The question you have to ask yourself is, is it worth the price you’ll have to pay to receive a credit line right away as opposed to waiting a short period of time?
Most credit experts agree if you can wait a few more days, it is worth it when compared to the higher interest rates charged by the instant decision type of credit cards. You will pay the credit card company a lot of money during your relationship with them – why add any more than you have to?
Post by Mike from Financial Facts
