When approved for a credit card, the wait time can range from roughly “7 to 10 business days” to receive the physical card in the mail and have the ability to start using it.
It works differently with a kredittkort på dagen or instant-use credit card in that these can be used immediately. A same-day or instant credit card is not something all issuers offer; some will provide the new cardholder with their account details upon approval.
That not only allows same-day use, but the cardholder can immediately get the sign-on bonus after achieving a specific purchase and accumulating rewards. It takes some research to determine which credit cards provide instant approval and usage when formally applying.
You want to avoid too many inquiries on your credit report by submitting a lot of applications since these will drag your score down. Instead, try to prequalify or even contact the issuer to gather information before committing to a specific brand or issuer.
Let’s look more in-depth at the instant-use credit cards and learn more about the advantages that come with these cards.
Same-day or instant credit cards are only available with some brands or issuers. These allow prospective cardholders the opportunity to use the credit card they’ve been approved for before the physical card comes in the mail.
It’s thought of as a perk with the card, considering the length of time a customer usually has to wait for their new card to arrive, approximately 7 to 10 business days.
The protocol for an instant card will vary from one carrier to the next. As an example, some will not give their clientele access to their entire credit limit until the physical card is received.
With some carriers, the cardholder will receive an account number before receiving the physical card in order to access the account online. Others will get a barcode or a temporary number if they want to purchase before receiving the actual card and authentic number.
Are there benefits to using the card in that waiting period before the “real” card arrives? Let’s see.
In some cases, instant-access credit cards come with the potential for special financings. These offers can include a zero annual percentage rate (APR) for a certain period, roughly 12-24 months. These can be exceptionally beneficial for those attempting to get rid of higher-interest debts or eliminate debt in general.
As a cardholder, you can save a considerable amount when transferring balances to this card, but you must ensure you can repay the funds within the designated time frame.
Suppose you carry the balance beyond the deadline. In that case, interest begins immediately on that amount at standard credit card rates, with the potential to retroact to the date the card was activated. The priority is keeping the balance reasonable to ensure you can pay it back without difficulty.
Issuers or brands that provide instant-access credit cards will usually offer discounts or promotions to cardholders, like a significant percentage off with their first credit card purchase. It’s wise to develop a strategy if you know this is possible by using that first purchase for a large-ticket item you had planned.
The primary benefit of a same-day credit card is that you have immediate access to its use. That means you can begin making purchases straight away.
If you have a credit card that offers rewards, you could also start accumulating these much faster than if you had to wait the standard 7-10 business days for the physical card.
It’s also faster to achieve the sign-on bonus since your spending begins immediately. In some probably unrealistic scenarios, you could accomplish the designated spending amount for the sign-on reward even before the physical card arrives, depending on your spending habits.
In the same vein, there are benefits, but there are also a few downsides to consider with same-day or instant-use credit cards before committing.
The issuers of instant-access credit cards are few, and among those who offer these, they do so on only some of the cards in their brand. If you apply for a same-day card, you might still need to wait for the physical card if the issuer has difficulty validating your details.
Some issuers have restrictions with same-day or credit-access cards, only allowing a limited credit limit compared to what you will have when receiving the physical card. Once the authentic card is activated, you will then be able to use the total approved credit limit.
This could be defeative if you intended to use the initial purchase for a large-ticket item, especially if it’s a 0 percent APR period. But on the bright side, the physical card won’t be far from coming in the mail. The only genuine problem is if it were to get delayed or lost in transit.
When receiving approval for a same-day, instant-use credit card, remember to activate the physical card when it comes. This card you’re currently using could have a temporary account number with a restricted limit.
You want to make sure you get full use of the credit card you’ve been officially approved to use. That’s especially true if there’s any possibility that you have a promotion or discount attached to the card, like a 0 percent APR for a designated period of time or a significant percentage off the first purchase.
These discounts and promotions can come in handy if you need to buy a large-ticket item. Even with an instant-use card, it’s critical to keep the balance reasonable and pay the total amount each month in full if possible or as soon as possible to avoid a significant interest accrual.