The Truth About Pre-Approved Credit Cards – Are They Really Easy to Get

Receiving a message about a pre-approved credit card often feels like an easy shortcut to owning a credit card. It suggests you have already cleared the essential checks and that approval is almost certain. However, the reality is more layered than it first appears. While these offers are based on an initial assessment of your financial profile, they do not guarantee final approval. 

Understanding how pre-approved credit cards work, the benefits they offer, and the risks involved can help you make a more informed decision. It’s important to look beyond the appealing convenience and examine the details closely to avoid surprises later.

Pre-approved credit cards are offers made to individuals who meet a bank’s basic eligibility based on their financial profile, similar to the criteria used in credit card eligibility checks. Lenders usually check your credit score, repayment history, and banking activity to shortlist customers for such offers. Receiving one means you have passed an initial screening, but it does not guarantee final approval. The bank will still verify details like your income, existing liabilities, and credit score before issuing the card.

These offers are typically shared through SMS, email, or your bank’s app. Since the bank already holds your basic information, the process tends to be quicker and involves less paperwork compared to standard applications. While it feels like an easy way to get a credit card, final approval still depends on the bank’s detailed verification.

If you are trying to prequalify credit cards, a pre-approved offer is often a good sign that you meet initial criteria based on your financial history.

Getting a pre-approved credit card offer can feel like an easy way to access credit without the usual waiting time. Here is how the process works from initial offer to final approval:

• The bank performs a soft credit check to review your credit score, repayment history, and account activity, especially if you are an existing customer

• If you meet the bank’s internal criteria, you may receive a pre-approved offer through SMS, email, or your banking app

• A pre-approved offer means you have passed the initial assessment, making you a likely candidate for the credit card

• Despite receiving the offer, you still need to complete a formal application for the credit card

• The bank will verify your income, existing liabilities, and current credit standing before final approval

• If all details meet the bank’s requirements, your credit card will be issued

• Since initial checks are already done, the process is usually faster than applying for a regular credit card

• It is important to note that pre-approval does not guarantee final approval, as banks still perform final verification steps

Here is a clear comparison to help you understand the difference between prequalify credit cards and pre-approval when it comes to credit cards:

Disclaimer: The comparison provided is for general understanding only, and actual processes may vary depending on the bank’s policies and eligibility criteria.

Here are the steps to avail a pre-approved credit card smoothly and without delays:

1. Check if you have received any pre-approved credit card offers from your bank through SMS, email, or your bank app

2. Log in to your bank’s net banking portal or app to view available pre-approved credit card offers

3. Select the card offer that matches your spending needs and review all the terms and conditions carefully

4. Complete the online application form by filling in any additional details required by the bank

5. Upload any necessary documents if requested, such as identity proof or income details, to support your application

6. Submit the application and wait for the bank to verify your information and complete the final checks

7. Once approved, the bank will dispatch your credit card to your registered address

Receiving a pre-approved credit card offer does not affect your credit score, as banks use a soft inquiry to review your profile. A soft inquiry only checks your existing credit details without leaving any mark on your credit report, which means your score remains unchanged at this stage.

However, if you choose to apply for the pre-approved card, the bank may perform a hard inquiry during the final verification. A hard inquiry can lower your credit score slightly, especially if you apply for multiple cards within a short period. Always consider the effect of pre-approved credit cards on credit score before applying, to keep your credit health intact.

Here are some important points to watch out for before you apply for a pre-approved credit card:

Hidden Fees And Charges

Some pre-approved cards may include annual fees, late payment charges, or high-interest rates. Always check the fee structure carefully before you accept the offer.

Final Eligibility Checks

Even with a pre-approved offer, banks will verify your latest income and credit details. You could still face rejection if your profile does not meet their final criteria.

Limited Validity Of Offers

Pre-approved offers are often valid for a limited period. Missing the deadline means you will need to wait for a new offer or apply separately.

Fixed Card Options

The bank usually assigns a specific card with the offer, limiting your choices. If you want different features, you may need to apply for another card type.

Impact Of Multiple Applications

Applying for several pre-approved cards in a short time can lead to multiple hard inquiries. This could lower your credit score slightly if done too often.