Whether you’re getting your first credit card or adding another rewards card to your collection, getting a new credit card can be an exciting experience. It usually takes a few days for your new card to arrive in the mail, but you may not have to wait that long to use it.
In some cases, you may be able to use a new credit card before you receive the physical card. Although not all cards offer this option, it’s worth investigating if you need to use a new card quickly. Whether you want to finance a big purchase or start earning cash or travel for free, here’s how you can use your new credit card before it arrives in the mail.
how to use your new credit card before it arrives
It is possible to use a credit card before it arrives, but only with certain cards. If you want to use a credit card early, you must have an instant use card or a credit card that offers virtual account numbers.
instant use cards
With an instant use card, you can apply and get approved in minutes, giving you instant account access. One of the most common types of instant-use cards are retail store cards, which you can request at the store and use to pay for a transaction immediately afterwards.
Customers who sign up for a retail credit card at the store can receive a copy they can use right away, says ranjit sarai, vice president of digital banking products at credit sesame, a credit monitoring service. this can be done by printing the card information on a receipt to capture that first in-store spend, he says. Often these cards will offer discounts or rewards to encourage customers to use the card right away.
In addition to retail credit cards, here are some of the most popular instant use cards:
- Amazon Prime Rewards® Visa Signature Card
- American Express Blue Cash Preferred® Card
- Bank of America® Premium Rewards® Credit Card
- sofi credit card
virtual account numbers
Virtual account numbers or virtual card numbers, not to be confused with digital wallets, are another way to use your card online before it’s issued to you.
Virtual account numbers work differently compared to physical credit cards. When you get a virtual account number, you receive a single-use credit card number every time you make a transaction. when you buy something, you will be asked to enter a personal identification number (pin) to verify your identity.
The main attraction of a virtual account number is that it can be more secure than a regular credit card with a single reusable number. they can also be easily used online, just like you would a regular credit card.
“A virtual credit card can be used to shop online, which has become increasingly common during the pandemic,” Sarai says. “Also, a virtual card can be added to a digital wallet like google pay, apple pay or samsung pay,” she says.
Because virtual account numbers are less common than traditional credit cards, few financial institutions offer them. here are some offers available:
- capital one® eno® (available for select capital one credit cards)
- citi® virtual account numbers (available for select citi credit cards)
how to add a credit card to a digital wallet
Whether you have an instant-use credit card or a virtual account number, it’s a good idea to add the card to your preferred digital wallet. that way you can use your stored card information before the physical version arrives.
These are the steps to add a credit card to a digital wallet:
- Choose your digital wallet: There are dozens of digital wallets available, so the first step is to choose the one you want to use. The easiest way to choose a digital wallet is to see which app is most compatible with your device. For example, Android users can choose Google Pay, while most iOS users will choose Apple Pay. other digital wallets include paypal, venmo, and the cash app.
- download the wallet app: once you’ve chosen your digital wallet app, download it through the store of applications on your device. Most digital wallets are free, but be sure to read the terms and conditions to avoid any hidden costs or transaction fees.
- Add your payment method: After you’ve downloaded the app, you’ll probably be prompted to create a new account (if you don’t already have one). the final step is to add the credit card number and your billing address to your digital wallet. you will usually receive a confirmation that the card was successfully linked.
Using a digital wallet to make purchases is also very simple. When visiting a store in person, check to see if the retailer accepts digital wallets. Most point-of-sale (POS) terminals, which stores use to process credit card payments, have a small label indicating whether contactless payments are allowed.
then just hold your phone up to the terminal and wait for a beep. You may see a pop-up notification on your phone screen asking you to verify the transaction with a pin or biometric login.
why you would want to use your new card as soon as possible
There are many reasons why someone would want to use their new credit card as soon as possible. “Whether it’s a replacement for a previous card that was compromised, or someone’s first credit card, they should have the option to immediately start using it for spending,” Sarai says.
One of the main reasons to use a card before the physical version arrives is to make a major purchase. This is especially true if you applied for a rewards credit card and want to start using the card as soon as possible to earn points on purchases or meet the spending requirement for a sign-up bonus.
risks involved
Generally speaking, using a virtual account number or a digital wallet is very secure. “There are security features built into this process to ensure the phone belongs to the cardholder to help minimize the risk of fraud,” says David Shipper, senior research analyst at Aite Group, a financial research and consulting firm. and once a card is added to a digital wallet, the information is encrypted so it can’t be stolen or hacked.
However, one thing to consider is that using a new card before it arrives can lead to bad spending habits. Just as credit cards make spending money feel less “painful” than physically handing over cash, using a credit card you can’t see can make it even easier to overspend. Ultimately, whether you have a physical or virtual card, the keys to responsible credit card use remain the same: never charge more than you can afford, pay your bills on time and in full, and try to use less than 30% of your total line of credit.