Applying for online decision credit cards has a number of benefits, with instant approval typically at the top of the list. However, before you jump on the first online decision credit card offer you see; it is wise to do your research.
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The promise of instant results is a big draw and benefit for online decision credit cards. You are generally either denied or approved for a credit card in matter of minutes, or even seconds. This can be a major benefit that far outweighs the waiting game some credit cards may make you play, especially if you need to use the credit card in the very near future.
Benefits of Applying for Online Decision Credit Cards
Applying for online decision credit cards is often less of a hassle than sifting through mounds of hard copies of application paperwork. Even if you have the same amount of information to fill out, it is usually presented to you in an organized, easy-to-fill out online form.
You have less of a worry about leaving out pertinent information if the application will not let you submit it if such information is missing. Missing information can lead to a delay in processing, and that entire scenario may be avoided if you opt for an online decision credit card.
One more plus may be the leniency on the part of the credit card company. Online decision credit card companies may be less fussy about excellent credit scores and spotless credit reports and be more inclined to offer credit cards to those with lower scores or less pristine reports.
Detriments of Applying for Online Decision Credit Cards
Due to the easy of applying and promise of instant approval, online decision credit cards may lure people into a hasty application without properly thinking it through.
Researching all the online decision credit cards out there is a good idea to ensure you receive the best deal.
The convenience of applying for online decision credit cards may also make it too easy to apply for multiple credit cards without realizing how many applications are piling up. Applying for many credit cards at one time or even more than one credit card at one time, can negatively affect your credit score, the Federal Reserve explains.
Your credit score is also affected by how many credit cards you have. If you end with a slew of credit cards, especially if you applied for most of them in one fell swoop, it may appear as if you are having financial troubles and need credit cards to dig you out of the hole. Having a large amount of credit cards can also negatively affect your credit score.
Researching all your online decision credit card options and keeping track of your online applications are important steps during the application process. Before you even begin to apply for an online decision credit card, it also may be smart to obtain a copy of your credit report.
Your Credit Report Does Matter
While it may be true that online decision credit cards may be a bit more lenient when it comes to offering credit, your credit report still plays a vital role in the offer. A poor credit score and equally poor credit report may still merit you a credit card, but it may largely affect the rates and penalties that come with the credit card.
Those with excellent credit have already proved they can pay their bills on time and meet their financial obligations.
That means an excellent score may result in a more lucrative credit card deal that include things such as lower annual percentage rates and a higher credit limit.
A poor credit score and report may result in a less lucrative credit card deal. That may include higher annual percentage rates as incentive to pay the credit card bills on time and a lower credit limit to reduce the overall risk of the recipient falling into deep debt.
The Federal Trade Commission you can obtain a free copy of your annual credit report once each year. If you order a copy of your credit report online from AnnualCreditReport.com, it is typically available for you to view immediately.
You may have errors on your report that are negatively impacting it, which you could correct prior to applying. Knowing where you stand is also important for comparing the offers online decision credit cards extend your way.
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