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If you need a credit card but are worried about the lengthy approval process, look no further than instant approval credit cards. These cards let you know whether your application has been approved or denied within seconds or minutes, making it a convenient option for individuals with bad credit or a limited credit history. But before you apply, it’s essential to understand the ins and outs of instant approval credit cards, including fees, APRs, and rewards programs. Here are some helpful tips for choosing the best one for your financial needs.
Comparing the best instant approval credit cards
Whether you want to earn rewards or build or repair your credit, instant approval cards can help you achieve your goals. Here are some of our picks to meet various needs.
Top instant approval credit cards
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The Discover it® Secured Credit Card is one of the top options for an instant approval secured credit card. You’ll earn rewards that match many cards for good credit or better and have unlimited first-year rewards potential with its Cashback Match™ program. You’ll be eligible for automatic reviews of your credit after only seven months, meaning you may quickly graduate to better cards if you are responsible from the start.
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Pros
- You can earn solid rewards and a potentially valuable Cashback Match™ in the first year.
- You won’t get hit with a penalty APR or late fee the first time you miss a payment (up to $41 late fee after that).
Cons
- Discover isn’t as widely accepted as other networks, meaning you may also want another card from a different issuer.
- Quarterly caps on bonus rewards mean you’ll need to pay attention to your spending to maximize rewards.
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If you don’t have much to put down for a security deposit but need a card immediately, the Capital One Platinum Secured Credit Card is ideal. You’ll find one of the lowest minimum security deposits on this card, with several funding levels available. Also, Capital One reviews your account after only six months of use to determine your eligibility for an upgrade, making this card a good option for quickly building your credit.
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Pros
- You can qualify with a minimum deposit as low as $49, making this one of the cheapest secured options to start building credit.
- You may qualify for an unsecured card in as little as six months, quicker than many secured cards.
Cons
- Even though the minimum security deposit requirement could be low, it may be difficult to keep your credit utilization ratio less than 30 percent.
- The card offers no rewards, meaning you’ll want to upgrade soon if you want to earn rewards for your purchases.
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If you have limited card options due to a lack of credit history, the OpenSky® Secured Visa may be a suitable choice. There’s no credit check involved, meaning you can get a card regardless of your credit circumstances. However, you do sacrifice earning consistent rewards and have to pay an annual fee as a result. Thankfully, you can be eligible for upgrades in six months if you demonstrate responsible use.
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Pros
- There’s no credit check required, making this a good card to begin building your credit.
- Card activity is reported to all three credit bureaus, which helps boost your credit score when you use your card responsibly.
Cons
- You’ll only earn rewards with card-linked offers to specific merchants.
- The card charges an annual fee and provides little value in return outside of building credit.
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The UNITY® Visa Secured Credit Card offers a maximum credit limit of $10,000, one of the highest available. While you’ll need to put down a security deposit equal to your credit line, it gives you the option for an excellent credit utilization ratio if you have the discipline to maintain it. Coupled with an APR that’s fixed instead of variable and potentially lower than most secured cards, the UNITY Visa offers a unique approach to building credit.
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Pros
- This card offers one of the highest maximum credit limits on any secured card, which can give you an excellent credit utilization ratio.
- You’ll get a fixed APR that could be lower than most secured credit cards.
Cons
- You’ll need to pay a fee to increase your credit limit.
- The card doesn’t earn rewards and charges an annual fee.
How to choose the best instant approval credit cards
There are many factors when looking for an instant approval credit card. Here’s what to consider when deciding which card is best for you.
- Rewards: Not all instant approval cards offer the ability to earn rewards, so if this is important, check if the card offers them. If there’s an annual fee, ensure the rewards you’ll earn justify the cost.
- Credit history: Your credit history or lack of one may close off certain cards to you. If you have a bad credit history or are just starting your credit journey, make sure to find cards you can qualify for. Even if the terms aren’t the best, you can start on the right foot.
- Credit building: One of the most essential aspects of instant approval cards is building your credit quickly and responsibly. Check with each issuer to see when you’ll be eligible to upgrade your card to something better with more favorable terms and make that your primary focus while you have the card.
- Credit utilization: Having a good credit utilization ratio means having a low percentage of the amount owed on your credit card versus your total credit line. Some instant approval cards may not have a high enough maximum credit limit or require you to put down a higher security deposit than you can manage to have a solid ratio. Look for the best balance between these factors to help build your credit faster.
Instant approval vs. instant use and prequalified offers
You may see cards marketed in different ways. Some are classified as instant approval cards, while others are for instant use or available through a prequalified offer. While these can be similar, there are notable differences.
If you’re looking for a card that gives you access to your account information as soon as you’re approved, search for an instant-use credit card instead of an instant approval credit card. Approval decision times vary, but you can start using the card immediately once approved.
With prequalified offers, an issuer performs a soft pull of your credit report and lets you know whether you meet the basic requirements for getting the card. While you’ll get a good sense of your approval odds, it’s not guaranteed. You’ll still have to apply and face a hard pull on your credit report.
You can typically prequalify for a new card via an issuer’s website or a tool like CardMatch™ in less than 60 seconds. Still, even if you’re instantly prequalified and apply on the spot, an actual approval decision may take longer.
Similarly, you may be approved instantly for a new credit card, but that doesn’t mean you can use it immediately. You may still have to wait a couple weeks for your physical card to arrive. While some cards offer instant approval and a card number you can use immediately, having one feature does not guarantee the other. Make sure to read the fine print about when you’ll be able to use your card and how quickly you might be approved.
Frequently asked questions
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For instant credit card approval, there isn’t a specific score that guarantees success, but a higher score improves your chances. FICO credit scores typically range from 300 to 850, with higher tiers such as good (670-739), very good (740-799), and exceptional (800-850) increasing the likelihood of quick approval. Check the credit requirements for each card to understand better which ones you may qualify for.
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Some issuers offer virtual cards upon credit card approval, allowing you to make purchases immediately. However, full access to your credit line may only be available once you receive and activate the physical card. Eligibility depends on instant identity verification by the issuer.
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Instant approval credit cards can come with terms and conditions that are just as favorable as other cards, especially when issued by major lenders. However, cards from subprime lenders targeting applicants with bad credit may have higher fees and fewer benefits. It’s important to carefully review the terms, fees, and rewards programs before applying to ensure the card meets your financial needs.
What’s next?
Enter some basic information into CardMatch™, Bankrate’s prequalification tool, to find a card that best suits your needs. For more insight, our Spender Type Tool can point you in the right direction.
The bottom line
While instant approval credit cards may seem appealing for those with bad credit or limited credit history, they are not always the best long-term option. While some instant approval cards offer credit-building or rewards opportunities, the majority of these cards come with high fees and interest rates. Prioritize finding a card that fits your goals and credit profile rather than focusing solely on the speed of the approval process. Instant approval does not always mean instant use, so it’s important to carefully read the terms and conditions of a card before applying. The key to finding the best credit card is to do thorough research and choose one that aligns with your financial goals.
*The information about the UNITY Visa Secured Credit Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
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