Clifford Weighs In on Credit Card Instant Approval
WalletHub featured Director of Financial Aid Heather Clifford in an "Ask the Expert" segment explaining the process behind instant approval for credit cards.
From the WalletHub interview:
"How do credit card companies decide whether or not to 'instantly approve' an online applicant?
When describing the process to students, I explain that much like your academic transcript provides grades for different classes you take, your credit report is your financial transcript and your GPA is your credit score. In this example, the classes you take are lenders who have extended credit to you; they will provide a grade and an evaluation of your work as the term progresses. Some classes carry more weight than others in your GPA and a 'failure' or turning in assignments late can really impact your GPA. When you apply for a credit card, you are authorizing the credit card company to perform a search on your financial transcript and gain access to your financial GPA, known as your credit score. They will be able to see everyone from whom you have borrowed including credit cards, store credit, car loan, mortgage, or any other company."