Pre-Approved Credit Card

You must apply for a pre-approved credit card separately regardless of whether or not you receive an email about the same. Your credit history will next be subjected to a second round of checks by the bank or credit card provider. If your credit history is not acceptable, your credit card application will be denied. Furthermore, your CIBIL score will be lowered temporarily.

Important Facts About Pre-Approved Credit Card

Before applying for a pre-approved credit card, it is important to be aware of the following facts:

1. Offers like lifetime free credit cards or low-interest credit cards have a limited validity. They are simply marketing ploys to entice customers to buy their credit cards.
2. Banks continue to increase their annual percentage rate by 36 to 40%. It makes no difference whether the other rates are low because it is the bank's responsibility to offer competitive rates in order to remain at the top.
3. The rejection of a pre-approved credit card application can cause a significant influence on your CIBIL score.
4. Waiving the annual fee for a credit card is simply not what a customer expects from a 'lifetime free credit card.' This is only a temporary reduction, and the credit card will never be free forever.
5. When the expiration date approaches, you may get trapped in a variety of scams. For instance, the credit card provider may not offer proper contact information or fail to clearly state their terms and conditions. You might also have to pay a huge sum of money to receive a credit card.

When Should You Get a Pre-Approved Credit Card

Now that you know about pre-approved credit cards, it is clear that banks and credit card companies take advantage of the illusion of 'easy access to money' to attract customers. However, this does not imply that you should refrain from obtaining a credit card. If you clear the bank's second round of credit history examinations, you will be fully qualified to acquire your credit card. However, before you acquire one, it is vital to examine a number of factors.

First and foremost, you should assess if you truly require one. If you have a high CIBIL score and need a pre-approved credit card, you should apply for one. However, in case you have outstanding debts on your other credit cards, you will sink deeper into the depths of debt. Thus, in such situations, it is not a good idea to apply for a pre-approved credit card.

Another thing you should think about is whether you can afford a pre-approved credit card. This is significant because even after all of the offers that come with a credit card, there are numerous fees and interest rates included. Therefore, you must be entirely capable of making these payments. If you have even the slightest concern, you should not apply for a pre-approved credit card because it will just put you deeper into debt.

If you are just drawn to the credit card offers but do not require them, do not accept them. However, you can apply for a pre-approved credit card if you already have a credit card but are dissatisfied with its annual fee, interest rates, or reward schemes. It is also important to understand the terms and conditions of the new card before applying.

Also, ensure that you do not have any outstanding debts on your previous credit card. A credit card that has been inactive can have a negative impact on your credit history. Therefore, you should apply for one only if you plan to use it and pay your credit card bills on time. Likewise, before applying for a pre-approved credit card, remember to take into account every detail about it like its customer reviews, features, policy documents, etc.