Warning: If You Don't Manage Your Credit File You Won't Get An Instant Approval Card

By Author: herry trexon
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Have you ever been declined for a credit card?

If so, it was probably because of something on your credit file. Whilst it isn\'t the only factor a card provider will take into account when deciding whether to grant credit, your credit file plays an important part.

If you are looking to benefit from an instant approval credit card, making sure your credit file is in good order is crucial.

What are \'instant approval\' credit cards?

Instant approval credit cards are offered by a number of leading Aussie banks. When you complete a credit card application securely using an online service, many providers now give you an instant approval having taken into account the information you have provided and after undertaking a credit search.

The instant approval normally takes no longer than around sixty seconds once you have submitted your online application.

What factors are taken into account when you make an application?

Credit card companies all have different underwriting criteria. However, most of them will base their underwriting decisions on the same general factors:
# Your ...
... employment status and income

# Your existing assets and liabilities

# Your credit file

The importance of a good credit file

Your credit file provides a credit card company with details of how you have managed your financial commitments in the past. It also provides an indication of how likely you are to manage your commitments satisfactorily in the future.

It follows, therefore, that if you have been late in paying credit card bills or other financial commitments in the past that you are likely to continue to do so. Credit card providers are therefore less likely to agree to grant credit to you if you have proved to be irresponsible with credit in the past.

If you want to obtain an instant approval credit card, it is therefore vital that your credit file is as robust as it can be. A lender is unlikely to agree a card instantly if there are any negative aspects to your credit file.

How you can improve your chances of an instant approval

The best way that you can maximise your chances of obtaining an instant approval is to ensure that your credit file is as good as it can be. You can do this by obtaining a copy of your credit report and making sure that it is accurate and up to date. If there are any errors, make sure that they are corrected.

You should then continue to manage your credit responsibly by making all your repayments on time and not going over any credit or overdraft limit. If you can demonstrate that you are able to manage your finances responsibly, it is much more likely that a bank will approve your credit card application instantly.

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