 |
Instant approval credit cards — Who doesn't want that?
out on-line or via phone. Ordinary credit card applications generally take anywhere from 2-6 weeks, but instant approval is literally that – almost. A few minutes spent on-line filling out a web form, or a short conversation on the phone with a customer service representative, and you're on your way to having a new credit line. When applying for a credit card with instant approval via phone often allows the customer to start using that credit right away, via a code provided at the end of the call. Whether done over the phone or the web, the instant approval process is essentially the same. You provide relevant personal information, such as Social Security number, home and work phone numbers, annual income, and so forth. That information is input to a database connected via computer network to the three major credit reporting agencies: Equifax, Experian, and Trans Union. Each one of which holds credit history data on over 220 million individuals. Within a few seconds, a credit report is generated for the issuing financial institution. The report is analyzed, either by the phone rep using rules provided by the company, or by a computer program following the same rules. The decision can be made quickly because of these automated systems, but that can work to your disadvantage. Since the company is committed to providing the applicant with an immediate answer – during the phone call or Internet session – the rules must be straight-forward and the criteria black and white. That means, if you don't have a stellar credit history you can be turned down just as 'instantly'. So, your credit rating is weighted in these cases heavily by one number: your FICO score. FICO is a number from 0-800 – though anything below 500 is off the chart. (How the number is calculated is a carefully guarded trade secret, but some important factors are length of credit history, presence or absence of late payments or loan defaults, and total amount of debt. Surprisingly, annual income appears to have little weight). 'Good' credit is considered 680 or above, with 720 being excellent. Customers with a score of 650 or below will usually be denied, unless there are extenuating circumstances. For those in that gray area, the phone application process will work best, since you have an opportunity to discuss your situation with a live person. In some instances, you may be able to provide them with sufficient reasons to grant your application, even if your FICO is less than great. If that's your situation, politely ask to speak to the representative's supervisor. They usually have more authority to make decisions based in individual factors. And remember, if one institution turns you down, another may be hungrier. Don't accept denial from one business as the final word. For those who know they have good credit and want the quickest route to a new card, the Internet application will be the most convenient. The process is secure, since all your information is encrypted and the application is analyzed without anyone ever seeing it. As with any credit card application, always read the fine print. Look for cards that offer No Annual Charge, the lowest available APR and no hidden fees. Funds are often available immediately on completion, while you wait for your plastic card to arrive the old-fashioned way. So, now that you can get a credit card in a few minutes, you'll have more time for your favorite form of casual relaxation. After all, not everything today should be done at Internet speeds.
|
||||
| |
|
© Copyright 2005-2006 by abc-of-credit-cards.com. All rights reserved.
|