Do you find it quite annoying that it takes several days for credit card issuers to provide you with an email that you’re either approved or rejected for the credit card that you’ve applied for? There are a lot of things that need to be reviewed when it comes to credit card application which is why many people often seek out a credit card issuer that offers instant credit products with instant credit decisions and receive immediate approval.
The instant credit decision is the process of assessing the borrower’s capabilities in responsibly handling and managing the loan or credit that he is applying for. It can be done online or through mobile apps and most of the time, the results are provided within a few minutes. You can easily receive your funds after the approval which is great for those who are in a tight financial situation.
If you want to learn more about the pros and cons of instant credit decisions, check out the article below.
Easy and Quick Approval
Loan and credit card applications can be a very long and tedious experience. You often find yourself having to wait several days and sometimes weeks to receive an update from them after you have applied.
This is why a lot of people are turning to lenders that offer instant credit decisions. Instant cash loan providers and many other credit card issuers usually have an online application process that is quick and simple.
It only takes a matter of minutes before you receive a decision that you have been approved. If you applied within business hours for your credit or loan, the lenders can provide you with the decision within the same day.
How Does It Work?
Instant credit decisions work by using data sources and algorithms based on the information that you have provided the lender with. Their system will then evaluate your creditworthiness to either approve or reject your application for a loan or credit card.
This happens within a few minutes and the accuracy of such a process is quite high. The applicant only needs to submit personal details such as their name, income, address, credit score, and many other information relevant to the application and submit it online through the website or a mobile app.
The lender then verifies the identity, income, credit history, and many other factors before it provides a result. An offer is then made based on the processed information and the applicant can either accept, reject, or even compare it with other offers.
Pros of Quick Credit Decisions
Applying for a loan with instant credit decisions offers a lot of advantages. Many people who are busy but also need the loan, they can apply and get approved without ever needing to go out to apply.
Most companies nowadays value their customer’s time hence the reason why many lenders offer instant credit decisions to their new customers. Many lenders now have a website or mobile app for online application and with this feature, you can immediately get approved and even receive your funds in no time.
This gives the customers an immediate response if their application is accepted or not and avoids wasting a lot of their time.
Get Your Money Quickly
When applying for a loan or credit card, it can take some time for you to receive an update from them. If you don’t time your application, you might end up having no funds for the next few days if you are tight on the budget.
You can avoid this from happening by applying for a credit card or loan that offers instant credit decisions. You apply for the card and immediately get a status of your application afterward. Many companies even offer a temporary credit card number while your physical card is being processed.
You can use this temporary credit card number on many transactions as if it was your credit card. By the time your physical card arrives, you can then activate it so you can finally use the card as it is.
Cons of Quick Credit Decisions
While there are a lot of pros to instant credit decisions, there are also some disadvantages to using such features when applying for a loan or credit card.
Many lenders that offer this kind of feature tend to also offer very high-interest rates to their applicants and customers. Most of the time, they offer an interest rate that is even higher than that of a secured credit card and they also charge you with even more fees.
A late fee is also applied if you are not able to pay on the first pay date. Since many of these applications happen online, there is a high risk of your approval getting delayed.
This happens when you provide them with inaccurate information or if there are spelling mistakes when you fill out the online application form.
Tips When Using Instant Credit Decisions
There are ways for you to go around these downsides. First, you must always check your credit score before you apply. Your credit score is the main factor when it comes to assessing your creditworthiness and getting a better credit limit with a competitive interest rate.
There are a lot of websites that offer free credit checks without hurting your credit score. Another tip is to compare your options. If you apply for a loan or credit card and get approved, make sure that you also try others and see which ones fit you the most. You can then make decisions and accept the offer that is best for you.
Lastly, read the terms and conditions carefully before you accept any instant credit decision. You should understand the interest rates and other charges and determine how much you have to pay each month before agreeing with their offer.
Conclusion
It is now a lot easier for you to get approved for a loan or credit card with the help of instant credit decisions. If you need emergency funds right away, you can always opt for this feature when applying. Make sure that you make good use of the credit and use it responsibly.