If you have applied for an instant approval card, you will be informed shortly whether your application has been rejected or approved. The express approval systems of some credit card issuers can give customers a decision in a minute or less. This way, you do not have to wait for days or weeks to receive the company’s decision by mail. If it is that easy, does it mean that everyone qualifies for instant approval credit cards in Canada?
Most Canadian credit card companies give approval quickly if the customer has an excellent or very good credit score. Those with poor credit score may see their applications declined in minutes. Clients with fair or good credit scores normally wait for some time so that their application is reviewed by an employee of the issuing company. Obviously, to qualify for this type of card, your credit score should be very good, or the application process will not be as quick as you would like it to.
Typical requirements to qualify for an instant approval credit card include Canadian residency/ citizenship, minimum applicant age, and minimum income. When you apply, you will have to provide other financial and personal details such as your full name, date of birth, employer details, assets and liabilities, household income, and more.
Most issuers approve only the applications of clients with good and excellent credit scores, but competition among them is tough. Some credit card issuers are willing to offer instant credit cards even to clients with compromised credit.
Keep in mind that even if your application has been approved, the card will be offered with high interest and lower line of credit compared to regular credit cards. Tough competition, however, makes credit card companies and banks compete for clients, by offering various incentives. These incentives may be in the form of zero interest balance transfers, free balance transfers, no annual fee, etc. Some instant approval credit cards are also offered with rewards programs, with clients earning rewards points to be redeemed for gift certificates, travel, merchandise, etc. Other companies offer cash back credit cards to clients. Cardholders can earn more cash back when they charge items in department stores, gas stations, supermarkets, etc.
Some instant approval credit cards are also featured with no application fee, no credit check, and no fee cash withdrawals.
It should be noted that submitting multiple applications will affect your credit score, especially if you do it within a relatively short time frame. This will be perceived as a sign of poor credit performance by the reporting agencies. Reporting agencies profile borrowers depending on their results and credit behavior. If credit card issuers check your credit and reject your application, you are considered a high-risk borrower. Getting your credit score lowered is quite likely. Therefore, it is a good idea to find out the requirements of the issuer and discuss them with their representative, if needed.