Schwartz spoke with WalletHub about instant approvals for credit card applications, and what consumers should know.
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Elon University Assistant Professor of Finance Andrew Schwartz provided expert insight for a recent WalletHub article examining how credit card companies determine whether to instantly approve online applicants and what consumers should do if they don’t receive an immediate decision.
Schwartz explained that most credit card issuers now rely on automated underwriting systems that consider an applicant’s credit report alongside information such as income to determine approval and credit limits.
“Today, it is uncommon not to receive a decision within a few minutes,” Schwartz said. “When a decision is delayed, it is usually because the issuer needs additional time or documentation to verify information such as your identity or income.”
Schwartz advised consumers not to assume a delayed decision means their application will be denied. He also recommended responding promptly to requests for additional information and avoiding applying for other credit cards while waiting.
“Multiple applications in a short period can result in additional hard inquiries and make a borrower appear to be in desperate need of credit, which could make lenders more cautious,” Schwartz said.