Personal finance

Instant Approval Credit Cards Online How They Work

Instant approval credit cards are those that generally do not require special requirements to be met in order to receive membership to the card. Often, these cards can be applied for, and approved, entirely online. There are many advantages to instant approval credit cards online that make them particularly attractive to many consumers.

An instant approval credit card online application is simple to complete. All of the necessary information required by the credit card company can simply and easily be placed into the online application form. Thanks to cookies, which saves information to your computer, much of the information can probably be added with the click of a button. Nothing could be simpler! With instant approval credit cards, there is no need to prove employment status and wait for it to be verified. There generally is no need to have a bank account. In addition, most instant approval credit cards do not even look at credit history in order to approve membership.

Many instant approval credit cards are secured credit cards. Secured credit cards are cards that the cardholder supplies money ahead of time to the card. These cards do not actually extend a line of credit to the cardholder. Instead, they allow the cardholder to access his or her own money with the ease of a credit card.

Secured instant approval credit cards provide a win-win situation for the cardholder as well as for the credit card company. The credit card company is happy because there is no concern about the cardholder borrowing money and failing to pay it back. Because the card is secured with the cardholder's own money, there is no need to perform a credit check or enforce stringent approval requirements.

This is part of the reason credit cardholders enjoy applying for secured instant approval credit cards. There are no hassles and no worries about being denied approval because of poor credit. In addition, secured instant approval credit cards help the cardholder remain in control of his or her finances because he or she plans ahead of time how much money will be placed on the credit card. Paying toward the card ahead of time also ensures the cardholder will not build up a debt that is impossible to overcome.

There are also unsecured instant approval cards available to consumers. Some consumers are not interested in secured cards because there are many fees associated with these cards. Fees such as application fees, processing fees, annual fees, and monthly membership fees are commonly found with secured credit cards. In addition, there is generally a fee assessed each time the cardholder places more money on the card, which is referred to as "loading" the card. In addition, some people are not interested in secured credit cards because they are seeking a card that will provide a loan that they can pay back at a later date.

Unsecured instant approval credit cards are not as common as those that are secured, but they are available. These cards often do check an applicant's credit history, but they are capable of completing this process quickly and efficiently, which allows them to still provide instant approval. Sometimes, these credit cards will only approve a small line of credit until they have had the opportunity to perform a more extensive credit check. After a few months of membership, instant approval credit cards following this practice will then extend an offer to the cardholder to increase the line of credit.

Instant approval credit cards are a convenient means for applicants to gain access to a wide array of credit cards, including business credit cards, cash back credit cards, and reward credit cards. Through the ease of online applications, the process could never be simpler!

Juggling Retirement and College Savings

Most parents want to pay for their children’s college education, or at the very least help pay for college. While it would be great for your children to be able to start like after college without student loans to pay off, the cost to parents may be too high.

The average annual cost of a 4-year public college is $12,127 (source: The College Board’s Annual Survey of Colleges, 2005-2006), with 4-year private schools averaging $29,026 a year. College costs have been outpacing inflation by rising over 5% per year.

On the other hand, saving for retirement has become even more important as companies have started freezing or eliminating pension plans, and the future of Social Security continues to be uncertain.

Paying for both college and retirement will be challenging for most parents. Here are some suggestions to help you to achieve both goals:

• Have a plan. You should determine how much you will need for retirement and how much you anticipate your children will need for college.

• Start saving as soon as possible. Time is your greatest ally, whatever your savings goal. Figure out how much you are able to save each month, and setup an automatic plan as soon as possible.

• Prioritize – if you can’t afford to save for both goals, retirement should take priority over saving for college. Your children can always borrow for college or earn scholarships; you can not borrow money for retirement.

• Save for both. Ideally, you’d like to be able to save for both goals at the same time. If you’re able to, allocate money to both goals. You may wish to visit with a financial planner to determine how much should be allocated to each goal.

• Research – there are several different types of college savings accounts available. Find out which type of account will benefit you the most before you invest.

• Use retirement accounts to save for retirement and college. Retirement accounts can be tapped into to help pay college bills (IRA withdrawals can be taken penalty free for college expenses; Roth IRA contributions can be taken penalty and tax-free). However, you should only do this if it will not sacrifice your retirement savings.

The bottom line to getting the most out of your savings - prioritize your savings goals, have a plan in place, and start early.