The Guide to Choosing an Instant Approval Credit Card

Instant approval cards are the quickest way to get a new credit card – you apply online and find out immediately if you have been approved. Use our comparison table to compare all the different deals, considering the various fees, interest rates, limits and benefits, to find the card that best suits your lifestyle and finances, and then begin the online application process.

Instant approval is made possible by the development of advanced internet technology and developments within the banking industry. When you apply online your personal financial data is automatically checked with the national credit bureau, calculations are made to decide whether you qualify and an automated response is sent directly – the whole process usually taking less than 60 seconds from you completing your online application.

A Quick Q&A About Instant Decision Credit Card Offers

Q: What information do I need to apply for an instant credit card? A: When you have found a card you want to apply for, ensure that you meet the bank’s legibility requirements, which usually include that you are a citizen or resident in Australia, have a good credit rating and have an income above the threshold applicable to the specific credit card.

On the application form you are required to provide a set of personal data, which usually includes the basics of your name and address, previous address if you recently moved house, employer, income and information on creditors and any outstanding debts. Once you have completed the application process the bank performs a credit check and provides an answer almost instantaneously.

Q: Is my credit rating important for getting approved? A: Yes, it’s crucial. Your credit rating is the key consideration for banks when they decide whether or not to approve you for one of their credit cards. Since the application is completed online and the decision is made automatically, approval or non-approval is fairly inflexible. You can check your own credit report by applying to a credit checking agency, and it’s a good idea to do this once a year to check that everything is up-to-date and there are no mistakes on your file.

You should also note that repeatedly applying for credit cards and getting declined damages your credit rating, so it is necessary to do your homework and ensure the card is suitable for you before starting the online application. Once you are approved and receive your new card, it is very important to use it responsibly, paying off your balance and avoiding getting into debt. Using your card wisely and improving your credit rating is often rewarded with access to more benefits, upgrades and extended credit limits.

Q: How do I compare before applying? A: You should study and compare all the features of any credit card and make sure you have found the best deal before applying. The purchase rate is the first factor to compare; this is the interest that is applied to any unpaid balance on your monthly credit card statement that represents purchases. You should also be aware that other transactions such as cash advances attract different, and usually higher, rates of interest, so familiarise yourself with these before applying.

You will also notice that many credit cards with instant approval feature a relatively high annual fee. This charge covers the maintenance of your account, and the higher the fee, the more extras and benefits your card should provide. If the card does have a high annual fee, you should decide whether you can really afford it and whether the extras are going to really be of any benefit to you.

Q: What about balance transfers? A: If you already have a credit card with an unpaid balance, you should look for an instant approval credit card with the option of a balance transfer. This allows you to move the balance to the new card and repay at a special low interest rate for a fixed period. Make sure the balance transfer deal you choose offers the best combination of interest rates and offer duration to make the most savings. When you are filling in the online application, apply for the balance transfer at the same time so you can start saving straightaway.

Q: What other features should I look out for? A: Banks offer many different features to attract new customers and encourage them to continue to use their accounts. Makes sure all the extras are beneficial to the way you want to use you card and offer genuine value for money. Some credit cards feature a special introductory offer of a low purchase rate for a fixed period. This can greatly reduce the cost of using your card, but you must be aware of how the interest rate changes at the end of the promotion.

Many provide membership to rewards schemes including frequent flyer programs, retail rewards and other types of benefit such as cash back and even charity donations. If the instant credit card you are applying for includes a loyalty program, ensure that you can earn points in the way you like to spend and that you can make use of the rewards on goods and services you can actually benefit from.

Q: If my application is approved, am I definitely getting a new card? A: The bank will instantly approve your application on condition of you meeting their set criteria. Although their initial decision may be to approve your application, if it transpires that you don’t actually meet their requirements, that details were missing or inaccurate, or that you can’t provide evidence to back up what you claim, then they can decline your application.

Q: If my application is declined, should I apply for a different card? A: No, this could lead to you being repeatedly declined. The reason for this is quite simple. Every time you apply for a new credit card, the bank checks your credit file, which includes details any recent successful or unsuccessful credit card applications. Banks look down on people who apply for multiple cards within a short period of time – they think it’s a sign of careless money management. So while it may be tempting to apply for a different offer after being declined, the best thing you can do is to hold tight for a while before applying again. Failing to do so could mean you’re stuck in a circle of being declined for being perceived as having a higher risk credit card user.