When you apply for a credit card, you have to wait for the application to be approved for ten days. It could be another 15 days before the card reaches you. Instant approval of credit cards reduces this waiting time. Instant cards are issued by financial institutions, auto loan companies, retail networks, airlines, and travel companies. Except for the approval process, all other features are similar to that of a regular credit card.

Here are a few points to note before you apply for an instant credit card:

1. Things to consider
One of the essential considerations for buying an instant approval credit is good credit history. Average credit history or higher increases the chances of your application being approved. With most companies offering such instant cards, look at the features, rates, late payment fees, penalties, and additional benefits like bonuses, points, etc. Compare credit card features in an app or online. Always talk to a customer service executive before deciding on the card. If you buy retail cards, understand credit limits, additional benefits, discounts on shopping, etc. Multiple companies are offering instant cards; verify the genuineness and legitimacy of the company. It is safer to go in for cards from financial institutions or retail companies of repute.

2. Application for instant approval credit card
Along with the basic personal information, you will have to submit or upload proof of identity, income, employment details. If you are applying for a balance transfer, you need to provide relevant information. The company will verify your personal and professional details, check your creditworthiness based on your credit score. This process is likely to take about seven to ten days. Once they have validated your KYC documentation, they will approve the application, and you will receive your credit card number within 60 seconds.

3. How an instant approval credit card works
Once you receive approval, the credit card company gives you instant access to your credit card number, which is the same number printed on the physical card. Without a physical credit card, you will not be able to swipe or use it on POS devices. However, you can add the credit card number to your mobile wallets and use them for making payments through your phone. You can also use the instant credit card number to make purchases online. You might receive the physical card in 10 days or more, depending on the company.

4. Benefits and disadvantages
Instant credit cards offer flexibility and freedom to spend your money. Since these cards are given only to those with a good credit history, it helps them manage their expenses better. If you buy a secured credit card, it is as good as spending your cash. Most cards come with discounts, air miles, reward points, and cashback which can be redeemed.

Your application could be approved late or rejected if you do not maintain a good credit score. A late payment could attract heavy penalties and charges. Credit cards are an asset only if you use them judiciously and make payments on time.