Credit cards have become a convenient option for everything, from everyday shopping and travel expenses to dining spends due to their flexibility & other benefits. Among them, pre-approved credit cards are gaining attention because of their quick approval & minimal documentation. But what exactly are pre-approved credit cards and, more importantly, are they the right choice for you? Here’s everything you need to know.
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What is a Pre-approved Credit Card?
A pre-approved credit card is offered by issuers to consumers with a good credit score. It means the issuer has reviewed your credit profile, primarily your credit score, and if you meet their basic eligibility criteria, they offer you a card. However, do keep in mind that pre-approved does not always mean guaranteed approval. The issuer may still reject your application after a final verification. The final approval depends on the issuer’s internal policies.
How Do Pre-approved Credit Cards Work?
Getting a pre-approved credit card is easy and convenient, as it comes with minimal documentation & quick approval. Here’s how pre-approved credit cards work:
- If you meet the issuer’s eligibility criteria, the issuer might send you a pre-approved credit card offer either through SMS or email by assessing your credit score.
- After you receive the offer and you choose to proceed, you are required to fill out an application form along with relevant documents (if required).
- After your submission, the issuer checks your creditworthiness by raising a hard enquiry on your credit profile and verifies your income, existing liabilities, etc.
- If the card issuer finds you eligible, your application will get approved. However, if you do not meet the issuer’s eligibility criteria, your application might get rejected.
Click here to check your pre-approved credit card offers at Paisabazaar!
Benefits of Pre-approved Credit Cards
Pre-approved credit cards function just like regular credit cards, offering rewards/cashback, lounge access, complimentary memberships etc. depending on the card variant. The added advantage, however, lies in their hassle-free approval and quicker access to credit as shown below:
Quick Approval Process
As the issuer has already checked your eligibility and shortlisted your profile, the approval of the card is faster as compared to a regular credit card application.
Minimal Documentation
The issuer already has most of your information, such as income, address and more. Therefore, in most cases, you don’t need to submit heavy paperwork, and you only need to provide limited additional details.
Higher Chances of Approval
As the issuer has already made an initial check on your financial profile and analyzed your eligibility, you have better chances of approval. However, pre-approved does not mean a final guarantee; the issuer might reject your application after final verification.
Convenience
Usually, you have to go through several credit cards to find the right one that fits your lifestyle. But with pre-approved credit cards, there are limited options, which lessens your search for the right card. You can choose the right card from the available options and apply for the card that best suits your lifestyle.
Good for Building Credit Score
As pre-approved credit cards work like regular credit cards, you can build a strong credit score by responsibly using your card and paying your bills on time. This will help you get eligible for better credit cards in the future.
Exclusive Offers
Sometimes, issuers offer exclusive benefits, such as a lifetime free offer or bonus rewards at the time of joining, in the case of pre-approved credit cards. While such offers should not be the sole criteria for choosing a card, they can significantly enhance your savings.
5 Things to Consider Before Getting a Pre-Approved Credit Card
While getting a pre-approved credit card is easy, there are a few things you should keep in mind before getting one:
Chances of Credit Card Rejection
Most of the consumers think that ‘pre-approved’ means ‘final approval’. However, pre-approved does not guarantee final approval. The issuer has reviewed your profile as per the existing information, and the final verification is done once you submit the application. Therefore, if your final verification is not successful, your application might get rejected.
Annual Fees & Charges
As pre-approved credit cards work like a regular credit card. Therefore, they also come with a joining and annual fee. Before opting for a card, you should analyze if you will be able to pay the annual fee and whether the card justifies its cost.
Other Fees & Charges
Apart from the joining/annual fee, credit cards come with other charges, such as interest rates, overlimit fees, cash advance fees, late payment fees, and more. The interest is levied when you do not pay your card’s bill in full every month, which is calculated daily. Therefore, it is important to read about all the related fees & charges in detail to use your card smartly.
Overall Value-back
If you are eligible for multiple credit cards, it is important to analyze your spending pattern & preferences to choose the card that offers maximum value as per your lifestyle. For example, if you frequently travel for work or leisure, it would be smarter to choose a card that offers accelerated benefits on travel expenses.
Impact on Credit Score
While it might be tempting to see multiple credit card offers. But you should only apply for a credit card that suits your lifestyle. Applying for multiple cards within a short time can affect your credit score, as it raises multiple hard enquiries.
Pros & Cons of Pre-approved Credit Cards
| Pros | Cons |
| Easy and quick approval | Not always guarantee approval |
| Less paperwork | May carry high annual fees or charges |
| Can help build or improve credit score | Card features may not match your lifestyle |
| Exclusive offers and joining bonuses | Applying for too many cards can hurt your credit score |
Should You Apply for a Pre-approved Credit Card?
If you have a good credit score and a strong repayment history, your chances of getting approved for a pre-approved credit card are higher. However, whether you should apply or not depends entirely on your needs and spending habits. If chosen smartly, pre-approved credit cards can be a great way to build a strong credit profile while saving on your daily expenses.
If the card matches your lifestyle and you can maximize its benefits, then choosing a card would be a smart choice. However, applying for a card just because it is “pre-approved” is not a smart decision. You must evaluate whether the offered card is truly beneficial for you as compared to other available credit cards.
How to Apply for a Pre-approved Credit Card?
You can apply for a pre-approved credit card either by visiting your card issuer’s website or through platforms like Paisabazaar.
How to Apply through Card Issuer’s Website/ Net Banking:
- You can look for offers from your bank via SMS, email, or net banking.
- Compare the pre-approved card with other cards in the market.
- You can click on the link in the offer to apply online or visit the nearest branch to submit an offline application form.
- You are required to submit basic identity, address & income proof.
- If you are eligible, the issuer will approve your application after final verification.
How to Apply through Paisabazaar
- Click on this link.
- Enter your mobile number and click on “Proceed”.
- Enter the OTP sent to your mobile number for verification.
- You will be able to see the pre-approved credit card offers on your screen based on your eligibility.
- You can compare multiple credit cards using the “Compare” feature.
- Click on “Apply” to apply for the card that suits your lifestyle.
- Enter your basic details, such as name, date of birth, PAN number, etc., complete eKYC, and submit the application form.
- After successful submission, you will be notified about your credit card approval.
Note: Pre-approved credit card offers may differ from consumer to consumer.
