Let’s be honest, getting offers for free or discounted things online or in the mail can be pretty exciting. As you move forward in your financial life, you will start to get more and more offers for things like new cars, insurance options and instant approval credit card offers. Most of these offers are easy to disregard, as they include major financial decisions you have to make when the time is right for you.
But, instant approval credit card offers are something a lot of people, especially students, fall for without looking into the financial impact they can have. Instant approval credit card offers can include things like zero percent interest, balance transfers of current credit card balances and bonus rewards just for signing up and meeting a minimum spending requirement. While some credit cards and the offers they have available can be a good thing, make sure to do your research before signing up.
Instant approval does not mean instant approval
When you receive an instant approval credit card offer, that doesn’t mean you are guaranteed to be approved for the credit card offer being made available. Credit card companies use this strategy to get their foot in the door in the hopes they can get your business. While instant approval credit card offers are usually made based on a brief look at your credit profile, you may be rejected once a closer look is taken at your credit history.
Just the process of applying for a credit card, which includes a hard check on your credit, can have a negative effect on your credit score. So you want to make sure you will be approved when you apply. Otherwise, you will be hurting yourself in the future when you decide to apply again. If you find that you are rejected for the offer, you will most likely be offered additional products that come with less credit score requirements. This is where you should take a timeout, and take a closer look at what you are applying for, and decide if it is the right financial decision for you at that time.
Take a close look at what is being offered
Instant approval credit card offers are ways for credit card companies to make you aware of what they are offering. This could be in the form of zero percent interest for a given amount of time, opportunities to transfer over your existing credit card balance at a lower interest rate and credit card sign-up bonuses for meeting an initial spending amount. All of these offers come with a time frame. Zero percent interest offers won’t last forever. Credit card companies make these offers available in the hopes you will rack up a balance during the zero percent interest period and then have to pay interest on it once that offer expires. The same is true in that they hope you won’t pay off the credit card balance that you transfer over during the intro period and then start paying interest again on the balance you still have.
Wait for the right offer for you
Credit cards can be easy to apply for and to use for spending. You want to make sure you use them responsibly and get the most out of them, as they can maximize the money you do spend. Instant approval credit card offers will always be made available to people who credit card companies think they can earn business from. Make sure you make the decision on which credit card is right for you when you are ready. Also make sure you do your homework and utilize programs, such as the free to use Casavvy.com’s Card Match program, to see all current offers that are being made available to you, and make an instant approval decision for yourself when you are ready.
Matthew Coan is the owner of Gainesville-based personal finance website casavvy.com.
