Congratulations! You're Pre-Approved for that Next Credit Card

So, you just got the mail out of your mailbox and you find an envelope that exclaims you're approved for an "Instant Approval Credit Card". What does it all mean?

Is there a better feeling when getting your mail then finding you've been pre-approved for a credit card? For most people anyway, it's a feeling of pride and joy. It says to you that your personal finances must be on track and in good shape to be pre-approved for a credit card. What a great feeling. So, what do you do next?

You may think that all you need to do now is send back the instant approval credit card application and you'll get your new credit card in the mail, and hopefully with a $5,000 credit limit. Well, the facts may tell a different story.

Well, believe it or not, your instant approval credit card may not be so instant, or approved for that matter.

You will find that many, if not most, credit card companies that mail you an instant approval credit card offer are simply saying that to keep you excited and on the hook so to speak. What the fine print will tell you is that the credit card approval is granted based upon your current credit and credit report.

The credit card company is going to see what your current credit history is like before actually approving you for a new credit card. There are some actual credit card companies that are truly instant approval, but not that many.

Another area of misunderstanding with the instant approval credit cards involves the actual timeframe of being able to use your new credit line. Most every credit card company will have you wait until your cards arrive in the mail you verify your identity before allowing you to use them.

Generally, this involves calling the credit card company on toll-free line and answering some basic security questions. While this may seem like a pain, the process is in place for your protection. With identity theft running rampant through the U.S., I'm happy for this process.