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 Instant credit cards can be both a blessing and a curse. First of all, instant credit cards offer that element that the other do not: the word instant. This means that you will more than likely be approved on the spot, and depending on the company, will be allowed to make purchases online or via phone within the same business day. Instant credit cards, however, are notorious for bad credit deals or smaller credit limits. Since the process of checking your credit history has been sped up, chances are they are not putting as much trust in your credit responsibility.

Your credit history and credit responsibility do not play as big a role in instant credit cards. What are the results of this? The APR of your instant credit card is likely to be higher than that of a traditional credit card. Because not many elements factor into the decision involving an instant credit card, they are likely to hammer you with higher rates and penalties to ensure their financial soundness in their decision. Also, your interest rates will be steeper in an instant credit card. Chances are, if you apply for an instant credit card, you are likely doing so to transfer another balance or to make a quick payment for something you do not have the capitol to do so with. Instant credit cards are often seen as “the quick way out”, therefore they will more than likely attempt to take advantage of your financial mistakes, or likelihood thereof. 

For the companies offering instant credit cards, the likelihood of the individual to fail paying the balance is their revenue. They will jump at the chance to sign people up for cards that show a history of such. If you have a bad credit history and might be unable to pay off the balance you are transferring to an instant credit card, be sure to do your research prior to receiving one. In all likelihood,

This Financial Services article was written by Colby Almond on 3/23/2010