What Are Instant Approval Credit Cards?

Instant approval credit cards are financial products that offer an immediate decision on your application, typically within a few minutes. While approval isn't guaranteed, pre-qualification tools can give you a good idea of your chances. These cards are designed to streamline the approval process, making it faster and more convenient.

For people with bad credit, these cards are often secured credit cards or subprime credit cards. Secured cards require a deposit as collateral, while subprime cards may come with higher fees and interest rates.

How Do Instant Approval Credit Cards Work?

When you apply for an instant approval credit card, the issuer uses automated systems to assess your eligibility in real-time. Here’s what typically happens:

Online Application: You submit an application with personal information like your name, address, Social Security number, and income.

Credit Assessment: The issuer performs a soft or hard credit inquiry to review your credit profile.

Instant Decision: If you qualify, you’ll receive instant approval. In some cases, additional documentation may be required.

Card Issuance: Once approved, you may receive a virtual card to use immediately for online purchases, while the physical card is mailed to you.

Best Instant Approval Credit Cards for Bad Credit

Here are some of the top instant approval credit cards for individuals with bad credit:

1. Discover it® Secured Credit Card

Approval Time: Instant decision for most applicants

Type: Secured Credit Card

Deposit: $200 minimum refundable deposit

Benefits: Earn 2% cash back on dining and gas purchases and 1% on all other purchases.

Why It’s Great: Reports to all three major credit bureaus, helping you build credit while earning rewards.

2. Capital One Platinum Secured Credit Card

Approval Time: Instant decision for pre-qualified applicants

Type: Secured Credit Card

Deposit: $49, $99, or $200 refundable deposit (based on creditworthiness)

Benefits: No annual fee and access to a higher credit limit after five on-time payments.

Why It’s Great: Offers flexibility with a low initial deposit option.

3. OpenSky® Secured Visa® Credit Card

Approval Time: Instant decision, no credit check required

Type: Secured Credit Card

Deposit: Minimum $200 refundable deposit

Benefits: No credit check required for approval.

Why It’s Great: Ideal for those with no credit or poor credit history since no credit check is needed.

4. Credit One Bank® Platinum Visa® for Rebuilding Credit

Approval Time: Pre-qualification decision within minutes

Type: Unsecured Credit Card

Deposit: No deposit required

Benefits: Earn 1% cash back on eligible purchases.

Why It’s Great: Offers cash back rewards without requiring a deposit, but comes with an annual fee.

5. Indigo® Mastercard® for Less-Than-Perfect Credit

Approval Time: Pre-qualification decision within minutes

Type: Unsecured Credit Card

Deposit: No deposit required

Benefits: Reports to all three credit bureaus.

Why It’s Great: No security deposit required, but it may have high fees.

6. Milestone® Gold Mastercard®

Approval Time: Pre-qualification decision within minutes

Type: Unsecured Credit Card

Deposit: No deposit required

Benefits: Reports to all three major credit bureaus.

Why It’s Great: No deposit is required, and it’s accessible to those with poor credit, though fees may be higher.

7. Chime Credit Builder Visa® Credit Card

Approval Time: Instant decision after approval for a Chime Spending Account

Type: Secured Credit Card (no deposit required)

Deposit: No traditional deposit required (uses Chime account balance)

Benefits: No fees, no interest, and reports to all three credit bureaus.

Why It’s Great: No traditional deposit is required, and it’s fee-free, making it a top choice for credit building.

How to Choose the Right Instant Approval Credit Card

When selecting an instant approval credit card, it’s important to consider the following factors:

Fees and APR: Look for cards with low fees and competitive interest rates. Some subprime cards charge high annual fees and maintenance fees.

Deposit Requirements: Secured cards require a deposit, but the amount can vary. Choose one that fits your budget.

Credit Reporting: Ensure the card reports to all three major credit bureaus (Experian, Equifax, and TransUnion) to help build your credit.

Pre-Qualification: Look for cards with pre-qualification tools to check your eligibility without affecting your credit score.

Benefits of Instant Approval Credit Cards

Quick Access to Credit: Apply and receive a decision in minutes, sometimes with instant use of a virtual card.

Build or Rebuild Credit: Most of these cards report to the credit bureaus, helping you establish a positive credit history.

Available to Bad Credit Borrowers: Even with a low credit score, you’re still eligible for some of these cards.

Drawbacks of Instant Approval Credit Cards

High Fees and Interest: Some cards charge high fees, including annual fees, monthly fees, and maintenance fees.

Low Credit Limits: Initial credit limits may be low until you prove responsible usage.

Deposit Requirements: Secured cards require a deposit, which could be a barrier for some users.

How to Use Instant Approval Credit Cards Wisely

Pay on Time: Late payments can negatively impact your credit score and result in late fees.

Keep Utilization Low: Use no more than 30% of your available credit to improve your credit score.

Monitor Your Credit Report: Check your credit report regularly to ensure your card usage is positively impacting your credit.

Upgrade to Better Cards: Once you’ve built your credit, consider upgrading to an unsecured card with better perks.