A credit card is your best friend during times of a financial crunch. You can make purchases and pay bills using your credit card without actually having to roll out cash for these expenses at the same moment. Use your credit card to make purchases and payments and pay the credit card bill any time during the billing cycle.
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If you are wondering how to apply for a credit card, apart from the routine procedure of contacting a credit card issuer, another popular way these days is to get pre-approved credit card offers from credit card companies.
What is the Meaning of Pre-Approved Credit Card Offers
Sometimes, people may get an email, mail, or message informing them that their credit card is pre-approved. It happens without even applying for a credit card. Here is what these emails and messages mean.
Credit card companies are always looking for innovative ways to expand their customer base. Similarly, card issuers send pre-approved credit card applications to prospective customers through emails and messages.
However, banks and credit card companies do not send these pre-approved offers randomly. They first screen the prospective customer, and only if the customer meets the criteria do they send him the pre-approved credit card offer.
If you receive a pre-approved credit card offer, the issuer has checked your credit score and loan repayment history, and you have qualified on their pre-approval parameters.
A credit card pre-approval is an invitation to apply for a credit card, not an actual credit card approval. An individual who receives a credit card pre-approval is a promising candidate for the card issuer to offer a credit card. Still, first, you need to put in a credit card application to get a credit card. The card issuer will still conduct several checks and ask for various documents before approving his credit card application.
How to Apply for Credit Card that is Pre-Approved
The credit card issuer sends the prospective customer a pre-approved credit card offer, and the individual has to act on the offer to go ahead with the credit card application. The individual must provide the card issuer with the required information to complete the credit card application process. Here is how an individual can apply for a pre-approved credit card offer from a card issuer:
- The most common way to apply for a pre-approved credit card offer is by contacting the card issuer once you receive the pre-approved offer letter or message. Usually, the pre-approved offer contains an invitation code you need to enter to apply for the credit card through the prescreened offer.
- Go to the bank’s website and look for the link where you will find a simple form to apply for a credit card. Enter your personal and financial information, and the website will show you the best possible credit card offers. Here, you first get pre-qualified for a credit card offer and then get a pre-approved credit card offer that is more personalised based on your details.
Things to be Aware of in a Pre-Approved Credit Card Offer
It is crucial to be aware of a few facts before applying for a pre-approved credit card offer:
- Certain pre-approved credit card offers, like lifetime free credit cards, have a limited validity period, and credit card companies use such offers to attract more customers.
- A pre-approved credit card application may get rejected during the detailed screening by the bank once an individual applies for a credit card.
- Individuals should avoid blindly responding to all pre-approved offers and apply with a bank if they want a credit card from a particular bank.
Does a Pre-Approved Credit Card Affect the Credit Score
People are often apprehensive about applying for credit cards through pre-approved offers. There is always a concern that such an offer can be a scam. However, you have no reason to worry if you apply for a credit card with a reputable bank.
Another common concern is that the pre-approved credit card offer may affect an individual’s credit score. The answer is that a pre-approved credit card offer cannot affect your credit score until you decide to respond.
If you decide to go ahead with your credit card application based on the pre-approved offer, the bank will screen your application and credit report further. If your documents and application are complete and your credit score is sufficient, the card issuer will approve your credit card application. Otherwise, the card issuer may reject the application. If your credit card application gets rejected, it will negatively affect your credit score and put a negative remark on your credit history.
A credit card received from a pre-approved credit card application acts similar to a normal credit card, and the cardholder must be disciplined with his card bill payments.