What are Guaranteed Acceptance Credit Cards

Acceptance Credit Cards are like any other but they come without the same application criteria. A card issuer that markets a guaranteed card generally offers pre-approval for acceptance. This may be useful for people that would otherwise find it hard to take out a card or for those that would prefer not to have to go through a credit checking process such as those with bad credit or no credit.

What Types of Credit Cards Come Pre Approved?

Actual products on offer in this sector depend on the individual card issuers. Some give out their guaranteed acceptance offers for:

Standard unsecured credit cards.
Secured card products.
Prepaid cards.

Some card issuers offer a single type of pre approved product; others may offer a few different types.

Why do People Use Guaranteed Acceptance Credit Cards?

This often comes down to past financial history. People with credit problems often find that they will not qualify for regular card offers and are turned down by issuers. This leads many to worry about making further applications as rejections can add to the problems they have on their credit record. Some simply know already that their credit score will go against them and that their only option is a card without a credit check.

What are the Advantages and Disadvantages of Using Pre-approved Cards?

Some of the advantages of using these kinds of cards include:

They allow just about anyone to get a credit card no matter how bad their credit history may be.
With sensible management they can help build or repair a credit rating or score.
On the other hand, some of the disadvantages of these products include:

They often come with higher interest rates than regular cards and a range of fees and charges.
They may not actually be open to every applicant in every case.
It is important to weigh up these pros and cons before choosing whether to apply.

Things to Look Out for Before Applying for a Guaranteed Acceptance Card

Apart from making to sure to compare costs to try and get the best deals and rates here, consumers may also want to read the terms and conditions of any guaranteed acceptance card offer before they apply for it. This may help them make sure that they are applying for the right product.

For example, some card issuers will market pre-approved offers for standard credit cards but may state in their small print that they do not have to offer this type of card to every applicant. They may guarantee acceptance but that may mean taking out a secured card or a prepaid option instead of an unsecured product.

What is an Instant Decision Credit Card?

Applying for a credit card used to be a time-consuming process. Nowadays many card companies use Internet technology to allow consumers to apply online. Robust systems and connections with credit referencing tools also allow many to make an instant decision on applications. What are instant decision credit cards and how does the process work?

What are Instant Decision Credit Cards?

These credit cards aren’t themselves any different to other cards. They do the same job, come with the same features and benefits and may have a variety of offers and deals attached to them. The difference here is all in the application process.

By applying online the consumer can fill in their details, submit their application and get an answer back in a short space of time. The traditional route of filling in a form and then posting it off to be checked used to take weeks. Today’s technology means that the application can be logged and assessed in a few minutes or even, in some cases, in less than a minute.

How Does the Instant Decision Process Work?

Financial institutions need to have robust, speedy and secure systems generally. One of the advantages of having this kind of technology in place is that it allows the automated processing of information extremely rapidly. Typically, for example, an online credit card application involves:

A consumer fills in an online application form and submits it.
The card company’s system receives the data and checks it.
A credit check is run on the applicant to assess their credit score.
A decision is made on whether to approve or decline the application and the consumer will then be notified.

All being well this could take just a matter of seconds or minutes.

Does Everyone Applying Online Get an Instant Decision?

In some cases an application may not be given an instant decision and it may need to be referred to an employee to be checked out. Occasionally the data or the credit check throws up flags that need to be looked at. This will add to the time involved in getting a decision.

Things to Consider Before Applying for an Instant Decision Credit Card
Before making this kind of application it may be worth remembering that:

An instant decision does not equal guaranteed acceptance. Those worried about their credit history may want to avoid impairing their record further by talking to the card provider first to assess their chances of approval. In some cases they may be better off looking at guaranteed acceptance credit cards or bad credit products if it turns out they are unlikely to be approved for standard options.
It is still important to compare interest rates and deals before making an application. This can be done quickly by using online credit card comparison sites that bring together details of many different cards (including those with instant decisions).

Finally, bear in mind that an instant decision on a credit card application may be quick but things may then slow down a little. It’s also worth checking if the card provider will allow for their agreement to be signed online or whether it will need to be posted as this can add to the overall time it takes to get a card.