Best Instant Approval Credit Cards
Instant approval credit cards have minimal requirements to help you quickly build your credit score.
One of the most important parts of your financial history is your credit score. Your credit score provides potential lenders and creditors a general overview of your financial responsibility. With a good credit score, you can get favorable loans, which is important for buying or renting a home or getting a new car. Though with bad credit it becomes hard to even get a loan, or anything requiring credit checks. The easiest way to build up your credit is making timely payments on your credit cards and loans. Failure to do so hurts your credit score. This can create a vicious cycle, where your low credit score makes it difficult to get new loans or lines of credit, keeping you from making payments to raise your score.
Fortunately, there are several resources available to help you rebuild your credit. Instant approval credit cards use a simplified process to determine your eligibility, taking at most a few minutes. These cards have fewer requirements than traditional credit cards, allowing you to quickly open an account and start rebuilding your credit. This comes at the cost of fewer perks than traditional credit cards.
Necessary Credit Score
Each credit card provider has different eligibility requirements. While the requirements for instant approval cards are significantly lower than traditional credit cards, there are some limits for each of the card types though. If you have a good credit score, which is between 670 and 739, you will qualify for the majority of instant approval cards. Most companies will also provide you a credit card if you have a fair rating, which is between 580 and 669. It becomes harder to get approved if you have a poor credit score. It becomes harder to get instantly approved with a poor credit score. There are some companies that specifically cater to individuals with lower credit, either requiring no minimal score or accepting anything above 500.
It is important to understand your current credit score as well as the minimal requirements when you apply for a credit card as they will affect whether or not you can reasonably expect to get the card. If you repeatedly apply for new lines of credit in a short period of time, it has a negative impact on your score, since it gives the appearance you are a risky spender.
Instant Approval vs. Prequalified Offers
There are some similarities between instant approval and prequalified credit cards that applicants may find useful. Both are recommended if you need to rebuild your credit because they are easier to get, but the eligibility requirements are different. Prequalified credit cards are offered after performing a soft credit check. This is a credit check which you do not initiate, so it does not negatively impact your credit score. Companies routinely perform these credit checks to find new customers.
However, even if you are preapproved, you must go through the traditional application process. Once you submit a formal application, a hard credit check is performed, and there is the chance you are denied. An instant approval credit card is designed to get you a credit card as quickly as possible with minimal checks. Prequalified credit cards typically have more perks, but instant approval cards are easier to acquire. Many card holders start with an instant approval card, then move to a prequalified offer after improving their score.
Amazon Prime Rewards Visa Signature Card
If you prefer to shop online, Amazon’s reward card is an excellent instant approval credit card. Whenever you make a purchase from Amazon or Wholefoods, you get 3 percent back in rewards, which you can use on future Amazon purchases. Select partners, such as Starbucks and other restaurants, also allow you to use your reward points. Most approval credit cards will have listings of partnered businesses for you to look through. You can get 2 percent back at most restaurants, gas stations and drugstores. Other purchases earn 1 percent back. Amazon recommends having at least a fair credit score when you apply. Your starting credit limit is partially determined by your existing score. You must have an Amazon Prime membership when you apply for a card. Another reason the Prime Rewards card is popular is the lack of any annual fee.
Costco Anywhere Visa
The majority of instant approval credit cards provide minimal rewards. Costco offers a strong rewards program while also accepting applicants with a fair credit score and charging no annual fees. Members receive 4 percent in rewards on their initial expenses, up to $7,000. When you spend on travel or dine at partnered restaurants, you receive 3 percent back. All Costco purchases earn 2 percent, while any other purchase earns 1 percent.
Credit One Platinum Visa
If you have a poor credit score, Credit One provides an excellent instant approval credit card. Credit One has generous eligibility requirements, offering unsecured credit cards even if you have a poor credit score. The downside is Credit One has a small line of credit, starting at $300. It is not a good card to use in the long term, but it allows you to quickly build your credit back to fair, which opens up more possibilities. The Credit One card has a $75 annual fee for the first year, but it increases to $99 in following years, which is another reason not to hold onto the card for too long.
Upgrade Triple Cash Rewards
Upgrade is a unique credit card because it also functions as a personal loan. The card has no annual fees and allows you to earn 3 percent cash back on any home, auto or health purchase. General purchases earn 1 percent. While it functions as a normal credit card, you can also have your funds sent into your bank account, functioning as a limited loan with a fixed interest rate.