@chooseonline
Newsletter
More

Want it quick? As technology skips off into the advances of the future - credit card applications now offer instant decisions when you apply online, but is such hast ever a good idea with your finances?

Instant decision credit cards offer an online response to your application in minutes (or seconds if you're hooked up through fibre).

The majority of credit card issuers have this kind of technology when you apply online - including American Express, Tesco Bank and Capital One to name but a few.

We've put together a list of more instant decision credit cards here alongside details of any 0% deals and rewards as well as those cards suitable for people with past credit problems.

Instant decisions on credit status

Very broadly there are two main types of instant decision credit cards: good credit history deals and deals for those who are completely new to credit or, for whatever reason, have a poor credit record.

Poor or no credit history instant decision credit cards:

Barclaycard Initial
	Suitable as a first credit card or to repair a poor score and, includes Barclaycard Freedom rewards.	Apply here »
Representative Example: 29.9% p.a. variable on purchases. This is equivalent to 29.9% APR representative variable based on a credit limit of £1,200. Barclays Bank, 1 Churchill Place, London, E14 5HP.

Application criteria: Aged 18+, UK resident with a permanent address for 3+ months, earn £10k+ a year. Applicants can have missed repayments but can't have a history of bankruptcy or any CCJs or IVAs in the last 5 years.

Capital One Classic
	Suitable for a poor score, with purchase protection and identity theft assistance.	Apply here »
Representative Example: 34.94% p.a. variable on purchases. This is equivalent to 34.9% APR representative variable based on a credit limit of £1,200. Capital One (Europe) plc, Registered Office: Trent House, Station Street, Nottingham, NG2 3HX.

Application criteria: Aged 18+, UK resident on the electoral roll and have had credit in the UK before. Applicants cannot have been declared bankrupt in the past 12 months.

Good credit history instant decision credit cards:

Tesco Clubcard
	0% purchases for 15 months, plus earn Clubcard reward points on all purchases.	Apply here »
Representative Example: 16.945% p.a. variable on purchases. This is equivalent to 16.9% APR representative variable based on a credit limit of £1,200. Tesco Bank, PO Box 5747, Southend on Sea, SS1 9AJ.

Application criteria: Aged 18+, UK resident and earn £5k+ a year

Post Office
	0% commission on use abroad. Plus multiple 0% balance transfer offers.	Apply here »
Representative Example: 16.9% p.a. variable on purchases. This is equivalent to 16.9% APR representative variable based on a credit limit of £1,200. Post Office Limited, 148 Old Street, London, EC1V 9HQ.

Application criteria: Aged 18+, UK resident, earn £15k+ a year and not already hold a Post Office credit card.

You can compare more instant decision credit cards here.

Applying online for a credit card

What is an instant decision?

An instant decision application is a fast-track online decision on your suitability for a particular credit card.

Once you've filled out your information online and submitted the form your credit card application is processed immediately and, in most cases, you will automatically receive a decision letting you know if you've been accepted for the credit card.

This makes it especially important to look at the application criteria when you compare instant decision credit cards as well as other benefits you might want such as the ability to rebuild a poor credit score, a 0% balance transfer facility or cash back rewards.

How do online applications work?

When you apply online for an instant decision credit card your information is securely sent to the issuing bank or building society.

The issuing bank or building society then uses simple credit scoring information - usually using a company like Experian, Equifax or TransUnion - against their criteria to determine whether they'll offer you access to credit.

These credit reference agencies hold information that reflect your personal finance history, such as your current borrowing and your repayments on borrowing, as well as more general information on your stability such as whether you're on the electoral roll and previous linked addresses.

We've covered this in more detail and how to improve your chances of being accepted in our guide to repairing a credit score.

Once this credit check has been run, the issuing bank or building society will often then be able to give you a decision on your application in seconds.

How long will it take to get the credit card?

After making an instant decision credit card application you just need to wait for confirmation by post.

With some card providers you'll need to confirm the application by signing an agreement and sending it back to them.

However, many credit card companies now use a form of online signing when you apply online. This means you no longer need to wait for the agreement to be sent out to you in the post to sign by hand.

Put simply, you agree to the credit card terms and conditions when you apply online - so if you're accepted the credit card company can send your new card out to you straight away, eliminating the need to first post out agreement forms.

While this is quicker however, it does make it even more important to ensure you check the terms and conditions before you apply.

The time it takes for either your credit card or your confirmation will vary but a good rule of thumb is to allow around 10 working days, but for more information on this see our faq on how long it takes to get a credit card.

Multiple applications

The ease of making online applications has had an unfortunate side-effect in recent years: multiple applications.

Credit card applicants have been known to hedge their bets by making several credit card applications online at once or in a very short period of time.

This proves a problem because the credit search the vast majority of credit card providers perform on their online applicants shows up on credit records.

Multiple searches are a red flag for lenders and can lead to applications being rejected.

Ideally, those with a rejected application should try to work out why they have been refused and wait at least three months for the credit search to disappear from credit records before making another application.

Is it safe to apply online?

Online application forms are run from secure servers on a bank or building society's website.

The information you enter into the form is also securely encrypted which means that when the data is sent it is scrambled and can only be read - or unscrambled - by the bank or building society you've applied for a credit card with.

What do I need to have my credit card application accepted?

To be approved for an instant decision credit card it is important that you check that you fulfil all the application criteria before applying.

All credit cards require that applicants are resident in the UK, are over 18 (some providers require you to be over 21 or even 25), have some financial history in the UK including a current account (again, the type of history you'll need will vary with the card) and that you have a regular income.

Before you make an instant decision credit card application you might need to have the following information to hand:

• Personal information: your title, name and contact details.
• Home address: accommodation status, length of time at that address and the post code.
• Previous address: information will be needed if you have lived at your present address for less than 3 years.
• Employment details: work status, job title, employer details and contact information.
• Finances: your salary information and current bank account details.

Occassionally, it can also sometimes be worth obtaining a copy of your credit report before applying for credit - it can give you the opportunity to fix any mistakes and improve your chances before applying.

Poor credit history applicants

Note that instant decision credit cards aren't necessarily for people with a poor credit history and, just because the decision is instant, it doesn't mean that the qualification requirements are any less strict.

If you have a poor credit history it would be better to protect your credit score and look at bad credit rating credit cards instead, like the Capital One classic credit card [see review for cost of credit], which also offers an instant decision.

Compare credit cards before applying

Even though an instant decision on a credit card application is useful, it should never be the first criteria when making a credit card application.

It's still much more important to compare credit cards by looking at the different features they offer, such as: 0% balance transfer rates, 0% purchase rates, low interest rates or cash back deals before applying for a card.

Comments