When applying for a credit card, it can often take a few days to get your card approved. This is because the credit card companies need to retrieve your credit history, then evaluate it to decide whether you are approved for their card. However, the Internet has sped this process up tremendously, and now you can get instant credit cards online.
How Instant Approval Works
In recent years, credit has been standardized to a common scale. This is commonly referred to as your credit score, and is a representation of the FICO score. Developed by the Fair Isaac Corporation, this is the score that credit reporting agencies use to determine whether you have good or bad credit. On a scale from 300 to 850, and score over 720 is usually considered good credit.
When you apply for a credit card online, the company calls up your credit score from an online credit reporting agency. It takes the FICO score given by the reporting agency and compares it to a base credit score to see if you qualify for the card that you apply for. If your credit score is greater than the score needed for the card, you are immediately issued a credit card.
There are snags in the system, though. Since credit fraud is at an all-time high, the automated system won’t accept an application with any discrepancies. If you have moved recently, or even if you have a typo in your application, you won’t get approved instantly. You can still be approved, though–the automated system just needs to forward your application to a person who can evaluate your credit.