Instant approval vs verification

[Anonymous]

Just reading through some approval threads (which makes me happy and prevents me from applying for more myself), and some post got me wondering, what is the difference between an instant approval vs a verification? Does an instant approval mean anything different in the application process?

[DU556]

Doesn't it mean just that? They have all the info they need so they pesticide an instant decision. No need to send in information to see if they really want to provide credit.
Or am I understanding your question wrong?

[Anonymous]

Well, i dont know, thats why i asked...i never thought anything about it.  I was thinking maybe it had to do with if you already have another card with the same bank or something.

[Anonymous]

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@Anonymous wrote:

Just reading through some approval threads (which makes me happy and prevents me from applying for more myself), and some post got me wondering, what is the difference between an instant approval vs a verification? Does an instant approval mean anything different in the application process?

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From an underwriting perspective there is no difference between a credit application that receives an instant approval and one that is subjected to verification.

The verification step is separate from underwriting and is normally part of the card issuer's security protocols designed to ensure that that the application was not fraudulent (e.g. identity theft).  Verification is typically random so no one should be able to predict if it will happen with a specific application; and it ranges from simple steps like reading back a string of numbers texted to a phone number known to be linked to the applicant, to the particularly onerous like requesting a response to a letter sent by U.S. Mail or the requirement to fax copies of identity documents.

Some smaller credit issuers like credit unions might also choose to verify an applicant's sources of income but most regional and national lenders tend not to verify income and focus mostly on verifying the applicant's identity.

[CreditInspired]

Instant Approval - Immediate approval of application with no other information needed or required. You’re approved at that second, and that’s that!

Verification - Application needs further look-see by UW. May or may not need more info from applicant. May or may not need to verify something in your CR. Upon further inspection, applicant may or may not be approved.

Hope this helps.

[Anonymous]

So it has nothing to do with whether or not you already have an account with the creditor, and it has nothing to do with your credit/history etc?

[FinStar]

Correct. For instance, you could have 2 existing CCs with Capital One or BoA, the application may cross-reference their internal relationship database to determine whether you're an existing customer; however, the application still has to go through its own protocols and that can be any number of factors, such as further verification/data mismatch, fraud flags, further manual review, POI, etc. It really depends on the lender.

By and large, just because you have other products with the same FI does not translate into an instant decision every time.

[Mahraja]

OP @Finstar and @MaizeanBlue they are absolutely correct .I like to add small detail for all the kids out there never get emotional in banking world and don't ever volunteer for any kind of documents. unless you were specifically asked for that

If the application goes pending don't jump and upload your income docs its non professional way of doing business there are thousand reason for the App to go pending not just income .don't become copy cat after reading someone Approval post always do your own research according to your own profile and than pull the trigger. Don't always follow AZEO method keep the accounts under lite load almost always ..if you have pristine profile present it to the loan officer as its your first weapon of strike you must sound quick and confident during the conversation.hope it helps .

[FinStar]

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@Mahraja wrote:

OP @Finstar and @MaizeanBlue they are absolutely correct .I like to add small detail for all the kids out there never get emotional in banking world and don't ever volunteer for any kind of documents. unless you were specifically asked for that

If the application goes pending don't jump and upload your income docs its non professional way of doing business there are thousand reason for the App to go pending not just income .don't become copy cat after reading someone Approval post always do your own research according to your own profile and than pull the trigger. Don't always follow AZEO method keep the accounts under lite load almost always ..if you have pristine profile present it to the loan officer as its your first weapon of strike you must sound quick and confident during the conversation.hope it helps .

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This ^^^^.  Excellent words of wisdom, especially the bolded part.

[Pikaboo-icu]

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@FinStar wrote:

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@Mahraja wrote:

OP @Finstar and @MaizeanBlue they are absolutely correct .I like to add small detail for all the kids out there never get emotional in banking world and don't ever volunteer for any kind of documents. unless you were specifically asked for that

If the application goes pending don't jump and upload your income docs its non professional way of doing business there are thousand reason for the App to go pending not just income .don't become copy cat after reading someone Approval post always do your own research according to your own profile and than pull the trigger. Don't always follow AZEO method keep the accounts under lite load almost always ..if you have pristine profile present it to the loan officer as its your first weapon of strike you must sound quick and confident during the conversation.hope it helps .

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This ^^^^.  Excellent words of wisdom, especially the bolded part.

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+1  +1

Sage advice from two My Fico credit legends!!