Tag Archives: credit cards

5 Tips When Filling out Instant Approval Credit Card Applications

You get bombarded with them on a daily basis. They come in your mail by the dozens per month. When you go shopping at your favorite department store, they offer you one so you can 10 percent off your purchase. Instant approval credit cards—do you really need them? Are they such a great idea? Anything that seems that easy to get can’t all be silver lining. There must be some dark clouds in there too.

Instant approval, though, can be a extremely convenient way to build up some credit for yourself, and credit is, as every expert will tell you, what you need to build if one day you hope to buy a car, own a house, save for your kid’s college education, and so on and so on until you retire happy and rich. But there are some tips you can follow when applying for instant approval credit cards to help you avoid the pitfalls of ruining your credit, or just not getting the credit card you hoped for.

1. Don’t Get Too Carried Away

The first tip, and possibly the best one of the bunch, is not to go too crazy with your applications. Pick one card to start with, and see how that application process goes. When you start taking offers from every credit card company that sends you something in the mail, you run the risk of damaging your credit. That’s because other credit agencies will begin to see you as desperate, the more credit cards you apply for, and get rejected from.

2. If at First You Don’ Succeed…

Next, if the standard credit cards don’t accept your supposedly instant approved application, then try your hand at a gas credit card or department store card. These are generally easier to get for beginners in the world of credit. They also tend to make for greater “trainer” cards, meaning you can learn how to make monthly payments on time, and build your credit.

3. Get Bill Savvy

Speaking of bills, know how to pay for them. Keeping some carryover debt on a department store card is a good idea. It shows credit agencies that you can handle an outstanding balance. But don’t build up debt on everyday items, such as gasoline, food, or entertainment. That doesn’t look good, and neither does a balance that grows and grows every month.

4. Don’t be Late on Your Payments

Want additional help with instant approval? Here’s a big hint—don’t be late on any payments that you already have, whether they be credit cards, gas bills, cell phone service, etc. Any slip-up like that can ruin any good reputation you may have with the credit agencies in an instant.

5. Take Your Time to Find the Right Deal

And finally, take your time when taking advantage of instant approval credit. Once you try the waters on one card, wait another few months, even a year, before applying for your next. Or better yet, if you don’t need it, don’t apply at all.

Visa or MasterCard: Which Credit Card Should You Apply For? (Page 1 of 2)

Should you get Visa or MasterCard? Is one of them better than the other? Will one of them help your credit rating more than the other? Many people ask themselves these types of questions when they think about getting their first credit card or additional ones. The fact is, few differences exist between the two credit card brands today, but you can benefit by having a better understanding of the two companies and using their competition to your advantage.

Just Who Are Visa and MasterCard

First, you should know that neither Visa nor MasterCard actually issue credit cards themselves. Neither company deals with consumers or merchants directly. Instead, they create and run the worldwide computer networks that process the billions of transactions that occur each day from people who use their credit cards at millions of merchants and ATMs. Both companies make their money from financial institutions to whom they license the ability to market the MasterCard or Visa system to consumers and merchants.

MasterCard and Visa have been fierce competitors for years, each vying to be faster and more global than the other, just like Hertz and Avis, and McDonalds and Burger King. Each time one brand creates a new twist on their credit cards, the other soon follows to match it. Both companies now offer nearly identical benefits, such as travel insurance, car rental insurance, product warranty extensions, and so on.

Furthermore, both cards are accepted worldwide by nearly the same number of merchants. MasterCard says its cards can be used at more than 23 million locations around the globe, including 1 million ATMs and other locations where cash can be obtained. Visa says its cards are accepted at more than twenty million locations in more than 150 countries.

In general, most merchants throughout the world accept both cards, or if a merchant takes only one of the brands, another merchant down the block takes the other. The point is, your chances of being locked out of eating or buying a gift or getting a hotel room because you have only one brand of credit card are usually minimal — other than at a few noted events where one card or the other may have negotiated to be the sole credit card to be accepted. But such instances are far and few between.

Which Card is Right for You?

Given the above, is one card better or more right for you? The best answer depends on whether it’s your first, second, or additional card, as follows:

If You’re Applying for Your FIRST Credit Card

In this situation, you can make a choice based simply on selecting which issuing bank you prefer to work with, or which promotional offer you like the most, without regard to the brand on the card. Perhaps you like Chase or Citibank or HSBC, or perhaps you like the 0% APR with no-annual-fee offer you found online. It’s six of one, a half-dozen of the other.

If You’re Applying for Your SECOND Card

In this situation, it is strategically smart to select the opposite brand card from your first card AND to choose a different issuing bank. The rationale for this is that when you have two different cards, you will find that the two banks will compete for your business (assuming you maintain good credit). You will get offers for 0% balance transfers, higher credit limits, and other perks as the two banks vie for your increased use of their card. And just in case you find a merchant who only takes one brand of card, you can now be assured of having all your bases covered.