Instant Online Credit Card Approval Is Not New

Have you heard the buzz lately about instant online credit card approval?  This facility has been available for the last number of years.  A lot of the mainstream banks and credit companies offer this service.  The only clients who will receive instant approval will be those with a good or excellent credit rating.  The majority will be told that their application requires the attention of a senior credit manager who will respond within x number of days.  Or you may be asked to post in proof of earnings etc.
Some companies will approve most applicants with a fairly decent credit rating but will impose a very low credit limit say $500.  If you operate the account to their satisfaction, this limit is likely to be raised after a period of time.  The credit provider is working on the basis that they will attract a lot of new clients.  If some of those clients default, they are only going to lose $500 – peanuts to most credit providers.
So how can you improve your chances of being approved?  The first step would be to check your credit rating. Given the current downturn in the economy, it is wise to keep an eye on your credit situation anyway.  Crimes including credit card fraud and burglaries always increase in times of a recession.
If you have good or excellent credit, the next step would be to make sure you can afford this new credit card.  Why do you need a line of credit anyway?  Asking these questions now may stop you getting into financial difficulties later.  The days of spending our future earnings should be behind us.  If you want to buy something new like a holiday or car and don’t have the cash then you can’t afford it.  A credit card is not the answer.
If you are adamant that you want a card make sure you do your homework.   The rates of interest charged on these cards differ considerably.  There are also different perks and offers available.  For example, you should be able to get a card which doesn’t charge you an annual fee just for being a customer. 
If you regularly pay off your credit card debts on a monthly basis, you may want to consider one that gives you points or air miles.  Your spending will not cost you anything in interest charges and may give you a free flight somewhere.
If, like the majority of credit card users, you don’t repay your debts every month then you need to look for a card charging the lower interest rate possible.  Again at the risk of nagging, ask yourself do you really need this credit card.
Having easy access to money we couldn’t afford to spend has landed more than one family in serious financial difficulties.    Don’t get carried away by the convenience of instant online credit card approval.  A couple of days considering your decision may save you some sleepless nights later on.