How do instant credit card approvals work?

[Drsgwld]

There is no possible way these companies can look at a credit report in less than 30 seconds? How are they able to approve or decline in such a small time frame?

[buildafico]

Instant decision approvals are mostly based on solid numbers. Credit score, AAoA, utilization, etc. they don't actually look at your at your report unless you have an analyst look at it or it's a high limit card.

[IamB2]

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@Drsgwld wrote:
There is no possible way these companies can look at a credit report in less than 30 seconds? How are they able to approve or decline in such a small time frame?

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I imagine that each company has some sort of proprietary algorithm, but most will look at the score, AAoA, Number of collection accounts, Inquiries and Utilization... Then apply the information you have entered (annual income etc) and match what you entedred to the information on the CRA.

[coldnmn]

Computers make most decisions with a algorithm if border line is when you get the 7-10 day message so a credit analyst can review.

[user5387]

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@Drsgwld wrote:
There is no possible way these companies can look at a credit report in less than 30 seconds? How are they able to approve or decline in such a small time frame?

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A computer can easily do so in a short time frame.

Some lenders may prefer it this way, because a computer can objectively apply various rules, for example certain score thresholds, screening out reports with specific derogatories, and so on.

I expect that another part of the process is to verify your identity, which in many cases can be done automatically as well.

[takeshi74]

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@Drsgwld wrote:
There is no possible way these companies can look at a credit report in less than 30 seconds?

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Covered above but if they do it it's certainly possible.  

Be careful assuming that not understanding something means that it's impossible. 

[NewtonTBass]

If  I need to increase my credit line to improve my FICO score;

1.  Apply for new credit or increase my credit line better for MyFICO?

2.  Or respond 2 instant (kinda like a fast & loose 2 get credit?) CD approvals,  will it hurt my scoring?

3.  Am I correct, a hard pull will obviously be done on of the mentioned scenarios?

Newt

[user5387]

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@NewtonTBass wrote:

If  I need to increase my credit line to improve my FICO score;

1.  Apply for new credit or increase my credit line better for MyFICO?

2.  Or respond 2 instant (kinda like a fast & loose 2 get credit?) CD approvals,  will it hurt my scoring?

3.  Am I correct, a hard pull will obviously be done on of the mentioned scenarios?

Newt

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Increasing your limits may help your scores if you have utilization issues, but not otherwise.

Not sure what you mean by "instant CD approvals".

Getting a credit limit increase may or may not result in a hard pull; it varies with the lender and situation.

[NewtonTBass]

Instant credit card approvals is what I meant by instant CD approvals

[NewtonTBass]

it's best to ask the credit card lender regarding to HPs

been stung in the past by lenders who casualy say " let's see find out where you stand", before they answer any my questions.