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Key takeaways
- The time it takes to be approved for a credit card can vary widely from instantly to a week. It depends largely on the issuer’s process and how the application was submitted.
- Many credit card issuers offer instant approval for online applications. This quick process is facilitated by automated systems that assess creditworthiness almost instantly.
- Approval may be delayed if further review of the application is needed. This may occur if the applicant has a complex credit history or if additional verification of information is required.
Getting approved for a credit card is an important step in personal finance. A credit card lets you buy items you need and pay for them over time, is the easiest way to improve your score, and some even let you earn rewards. Credit cards are an essential part of modern life, but how long does it take to get approved for a credit card? And how does the approval process work?
Let’s find out!
Jump to:
- Understanding the credit card approval process
- How long does it take to receive a replacement credit card?
- Choose a card that offers instant access to credit
- How long does it take for a credit card to arrive in the mail?
- Why is my credit card application pending?
- How long does it take to receive your card?
- How does applying for a credit card impact credit?
- How does credit card approval work?
- Using your new credit card
- Look for instant approval
- Request expedited shipping
- What’s the difference between instant use and instant approval?
- Can I use a credit card before it arrives?
- Bottom line
Understanding the credit card approval process
Before discussing the exact times, we must understand the different steps to the application process.
- Application Submission: Fill out the application online or in person. You will have to give basic personal and financial information like your full name, social security number, and address and agree to a hard credit check.
- Credit Check: Once you send in your application, the company will conduct a hard inquiry. They will look at your credit report, score, and other financial details to see if you meet their requirements.
- Screening: The issuer will conduct a more thorough look at your finances, income, employment status, and current debt levels.
- Decision: The company will make its decision and notify you by mail, email, or through your online account with the provider. If accepted, you will be told about your limit, interest rate, and other terms.
While the answer to how long it takes to get approved for a credit card varies, most applicants can expect a decision relatively quickly thanks to advances in technology and data verification. If you have a good score you are likely to get approved faster, while people with lower scores may have to wait longer or be turned down. If the issuer needs to check your name, income, or other details, this may take longer to approve.
If you’re applying for a credit card online, the approval process can be incredibly quick, sometimes instant, if your information is straightforward and verifies easily. Mailing in a paper application or applying in person takes longer.
Want a new card and tired of rejections?
Check out 10 Tips for Getting Your Credit Card Application Approved!
How long does it take to receive a replacement credit card?
If you lose your card or find that someone has made fraudulent charges to your account, you should immediately call your provider to freeze it and get a new one. This will prevent further fraudulent charges.
Most credit card companies will send the new one to you wherever you are straight away. So if you need a replacement card while traveling, just give them your hotel information and it will be shipped there.
How long it takes to get a new card varies by credit card issuer, but in most cases, it’s less than a week. If you need a new one faster than that, check to see if they offer an expedited delivery option or can give you instant access to your new number.
Choose a card that offers instant access to credit
Having instant buying power is appealing. Many issuers offer this perk by giving you your number as soon as you’re approved and agree to the terms and conditions. This lets you use it for online shopping. You can also add it to your digital wallet and use it at a growing number of retailers.
How long does it take for a credit card to arrive in the mail?
Once your application is approved and you agree to the terms, the issuer will send you your physical card. Most cards take seven to ten business days to arrive. The exact time depends on the financial institution. You may be able to get expedited shipping if you need it right away.
Why is my credit card application pending?
Sometimes, lenders need more time to decide whether to approve or reject an application. A few common explanations are:
- The provider may have more applications than they can handle at once. This is a likely explanation if it comes with unique benefits or a lucrative sign-up bonus.
- You made a mistake on your application and the issuer can’t confirm some personal information. This will hold up your application as they figure it out.
- You put a freeze on your credit. This protects you from identity theft but you will need to unfreeze it so that the issuer can access your credit reports.
- The provider may need additional information to make sure that you are who you say you are or that the information on your application is correct.
How long does it take to receive your card?
The exact amount of time it takes to receive your physical card will depend on which one you applied for and how efficient your local postal service is. Generally, it takes 7 to 10 business days. Some issuers will provide faster shipping options. Or let you access it virtually instantly.
How does applying for a credit card impact credit?
Any time you apply for a new account your score will be affected. The impact is mixed, but overall it will be positive if you use it responsibly.
New credit inquiries
Ten percent of your FICO score is based on new inquiries. Any time you apply for credit, the lender will do a hard inquiry. This will drop your score by 5 to 10 points. It should bounce back in a few months to a year.
Length of credit history
When you open a new account, the average age of all your accounts goes down. The length of your credit history accounts for 15% of your FICO score with older being better.
This factor just requires patience. Add new accounts when necessary and don’t close old accounts – unless the fees are too high.
Payment history
Your payment history makes up 35% of your FICO score. A new account gives you another opportunity to consistently pay your bills on time.
Amounts owed
The second biggest factor ringing in at 30% of your FICO score is your credit utilization rate. Experts recommend that you use no more than 30% of your limit.
A new account will increase your total limit and therefore make it easier to have a cumulative low utilization rate.
New
Credit mix
A new account can also boost your credit mix – 10% of your score – if you’ve only had loans in the past. Lenders like to see that you can handle different types of borrowing – cards and loans.
Don’t go taking on debt you don’t need only to boost your score.
How does credit card approval work?
The company wants to make sure that you can afford a new account. They will look at your report to see your payment history and utilization rate. They will also consider your income, employment status, types of debt you currently have, and the number of applications you’ve sent in recently. Certain issuers will deny applicants with good ratings if they’ve applied for a lot of new accounts within one year or if their debt-to-income ratio is too high.
There are no exact rules that all providers follow. Before you apply, make sure your score calls in the acceptable range and that you’ve established a positive payment history.
Using your new credit card
Once you get a card, you should use it responsibly to keep your finances in good shape. First, know your issuer’s terms and conditions, such as the interest rates, fees, and benefits programs they offer.
Only charge what you can afford to pay for in cash. This will help you pay your balances in full each month and avoid interest charges.
Lots of issuers make it easy for you to keep tabs on your spending through their online portals or mobile apps. Use these services to track your own spending and to quickly spot any transactions that aren’t supposed to be there.
Look for instant approval
A lot of companies offer instant approval cards. With instant approval, you’ll know the outcome of your application in minutes.
To make sure the process works as it’s supposed to, make sure you meet the issuer’s criteria and that you give complete and accurate information on your application. You could also pre-qualify to see how likely it is for you to be approved without affecting your score.
If you receive instant approval, you should still carefully read the terms and conditions, including interest rates, fees, and perks to make sure it fits your budget.
Request expedited shipping
When you need to use your new account immediately and don’t have access to the number, you can request expedited shipping. This speeds up the delivery process so you’ll get it faster but comes with a fee.
What’s the difference between instant use and instant approval?
Instant use and instant approval sound very similar but they refer to two different things.
Instant approval means that the company makes a quick choice about your application – usually within a few minutes. You will know whether or not you’ve been approved but it does not give you access to your card right away.
Instant use, on the other hand, means you can use your card immediately after being approved. The issuer will provide you with temporary information or a virtual number that you can use to buy things online or add to a digital wallet like Apple Pay or Google Pay.
Can I use a credit card before it arrives?
If you can depends on your issuer. Some companies, like American Express, Capital One, and Chase, offer instant use cards. They send you numbers to use online or add to your digital wallet. Some companies provide a fake number that hides your financial information to prevent fraud.
Bottom line
The amount of time it takes to be approved depends on your score, financial information, and the one you choose. If you need one right away, look for a provider whose criteria you meet, offers both instant approval, and instant use cards. Then take the time to fill out your application correctly to do what you can to prevent delays.
The acceptance process can go smoothly if you have a positive payment history, low utilization rate, and choose the right option for your circumstances.
