What are Pre-approved Credit Card

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You are going through your emails when you notice an offer from your bank for a pre-approved Credit Card. The message highlights several benefits, such as a simple application process and a chance to improve your credit score. Since you are not familiar with what a pre-approved Credit Card means, you decide to ignore the offer. Hold on! This could actually be beneficial for you!

Let us explore what a pre-approved Credit Card is that, so you feel confident accepting it next time.

What is a pre-approved Credit Card?

A pre-approved Credit Card is one that your bank or card issuer offers even though you have not applied for it. These offers are usually extended to customers who have a strong repayment history, a high credit score, or a long-standing relationship with the bank. Even with the offer, you still need to complete the Credit Card application process, submit the required documents, and wait for approval.

Key facts about pre-approved Credit Cards

Key facts about pre-approved Credit Cards

Offers are time-sensitive
If you do not apply within the specified time, the offer will expire.
No immediate impact on credit score
Getting a pre-approved offer does not affect your credit score since it is based on a soft credit check. However, applying for the card can impact your score. If your application is rejected, your score may decrease.

Benefits of a pre-approved Credit Card

You may receive perks such as sign-in bonuses, reward points, discounts, or shopping vouchers.
Responsible usage helps build a positive credit score. Timely payments and low credit utilisation are key.
These cards often come with lower interest rates as part of promotional strategies.

When should you consider a pre-approved Credit Card?

When your credit score is good, typically 750 or above, increasing your chances of approval
When you need a quick application process with minimal paperwork
When you understand your credit needs and spending habits
When you are interested in special offers like rewards or cashback
When you want a higher credit limit, as these offers may include better credit availability

Pros and Cons

Pre-approved Credit Cards

Pre-approved Credit Cards mean the issuer has reviewed your financial history and determined your eligibility
Often leads to faster approval and better terms
Offer higher approval chances, better terms, and higher credit limits

Pre-qualified Credit Cards

Pre-qualified cards are based on basic information like income or credit score
Do not guarantee approval
Approval chances as well as credit limits might be low

Conclusion

Accept a pre-approved Credit Card offer only if you meet the bank’s eligibility criteria, including age, income, credit score, and credit history. A rejected application can negatively affect your credit score. When used wisely, a Credit Card can significantly improve your credit profile.

If you have received a similar offer from Axis Bank, consider applying for an Axis Bank Credit Card to enjoy discounts, cashback, airport lounge access, travel and dining benefits, and more. Choose the card that best fits your needs and eligibility.

Disclaimer: This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.