Instant Credit is a Hoax

Discussion in 'Credit Talk' started by RichGuy, Jun 11, 2000.

  1. RichGuy

    RichGuy Guest

    My friends, don't ever apply for instant credit at a department or discount store. Apply through the mail only. Otherwise, you'll just get another rejection and another inquiry on your credit record.

    Some people will mention a purported loophole in which the store offers instant credit for those who already have a bank card. This supposedly avoids both a credit check and an inquiry. However, these offers do not exist. They are an urban legend based on conditions 20 or more years ago.

    Anyone who claims that instant credit is ever guaranteed is stringing you along. Such a person is simply callous and arrogant, trying to get you to ruin your own credit record so they don't have to admit they're totally out of touch.
  2. William

    William Guest

    Yeah. I am sure you CAN get approved, but like any credit descion, there is no GUARNTEE
  3. J. Edgar

    J. Edgar Well-Known Member

    Another reason not to apply for "instant credit" store cards is the comically high interest rates they charge. Circuit City charges nearly 24% and most of them are not much better. FlexCard (offered by BankOne) is used in alot of carpet and flooring stores. It too, has a high interest rate.

    The only reason to get one of these cards is to take advantage of a "no interest" financing special they might be running when you make a large purchases. If you do, make damn sure you pay the whole thing off before the due date or you will have to cough up all of the back interest as well. The store is betting you won't be able to.
  4. Raisingyrl

    Raisingyrl Guest

    I mostly agree. I hate it when they tell you all you need is a credit card and you'll be approved. However, I did use instant credit for my cell phone. The rep assured me no credit checks, just needed $250 open to buy on my credit card (basically the same thing as using it at a car rental agency) and I was happy. There is no way I'm going to do pre-paid cellular - ouch that is expensive!!!

  5. spyguyjim

    spyguyjim Guest

    Other Cellphone Credit Program

    Speaking of cellphones, Sprint has a spending limit program that allows up to $125 or $250 depending on the credit score. No deposit required anymore! After six months of on-time payments, no returned checks, etc., they release the spending limit.

    I watched the paper for ads and got the 1,000 minute/free long distance anywhere in the Contiental U.S. package for $75/mo. Hard to beat!
  6. Robb

    Robb Guest

    RE: Other Cellphone Credit Pro

    Tell me more about this plan!! Where can I get info?
  7. spyguyjim

    spyguyjim Guest

    RE: Other Cellphone Credit Pro

    Go visit a Sprint Store or an authorized dealer, such as Radio Shack, Kmart or the many others. I see ads in the paper every weekend for Spint PCS service. Check out also.
  8. Steven Z

    Steven Z Guest

    RE: Instant Credit is a Hoax -

    Regardless whether this post was directed at me personally I decided to get the facts for myself.

    Since Target is usually touted here as the easiest store to gain credit at I decided to begin there.

    I stopped by a nearby Target store and noticed that there Target "Guest Services" ads were still as blatant as ever "10% off with your first purchase that day", but most importantly "instant approval with proper ID"

    Now I could have asked this from one of the reps, but previous experience had taught me that they are nothing but shills working for commission who will tell and say anything to get you to apply.

    I considered calling their toll free number (1-888-304-4000) and taping the conversation (both New York and Minneapolis are "one-party consent" states so I wouldn't be contravening any interstate laws). In fact a friend of mine who makes a habit of taping his converations with companies was all for it and wanted to be in on the call. But I have had enough bad experiences with "departmental pass the buck" and didn't relish another extended bout.

    I decided the quickest and simplest way to get a proper answer would be to send an email on their site ( which went as follows:


    I just want to clarify your Target Guest Card criteria.

    Now I've noticed instore that your company advertises "Instant Credit" if an individual has so much as one "credit reference" e.g. major credit card.

    Is this truly the case?

    In plain language if I walk into a Target store with my bank credit card will I be approved for credit on the spot?

    Or must a credit inquiry be done and approval based soley on the information
    present and/or credit risk score?

    Thank you for your attention.

    I received this response:

    Thanks for your e-mail.

    A major credit card is required to apply for instant credit online or at a Target store. We accept Visa, MasterCard, Discover, and American Express. A credit bureau report will be reviewed to determine credit eligibility regardless of how you apply.

    If you do not have a major credit card you can apply by mail. Applications are available at your local Target store or you may reply to us by e-mail and we'll send you one. Please include your complete mailing address in your reply.

    Thanks for being a valued Target Guest! Visit us again at

    Romy Financial Services

    Well thats that. Conclusion

    An obvious conflict and a definate case of a major violation of "Truth in Advertising", any civil liberties lawyers willing to take the case shouldn't have a difficult time with it.

    As far as being 'out of touch', I don't feel that is the case, I have personally been granted instant credit on several occasions in the past few years and have witnessed several friends and heard from others who have managed the same thing. Upon closer examination it was determined that we did so even with little or no credit history (I know alot of 'cash only' persons); in fact my first was garnered soley with the possession of an offshore visa card.

    I conclude on this somewhat limited sample, that Target (or others that offer 'instant credit'), who does an inquiry with Retailers National Bank after the fact; who ever said they don't? will show no hesitation over approving somebody with limited or no credit history as long as they posses a bank card, the same apparently may not hold true for those with bad credit.
  9. Mick

    Mick Guest

    RE: Instant Credit is a Hoax -

    Just do it on the web site I did it at first I entered my personal info then pressed enter
    then it gave me some sort of message they needed to check more into my info at first I though I would be declined but you can check again in the web site for a final decision so I waited about 1 minute and I was approved for the card and in 10 days I received my target guest card.
  10. Mick

    Mick Guest

    Your basically right about the instant credit at department stores I have some derogatory credit but most is excellent and I have not put a inquiry for months so I got brave and logged on to filled out the credit application and pressed enter. At first it gave me a message they needed to check more into my information then I thought I would be declined. But in the web site you can go back and find out the final decision so I waited a minute and check back and I was approved and 10 days later I received my target guest card. So dont give up hope. I wonder any other account are as easy to get.

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