Pre-Approved Credit Card
Whenever there is a cash crunch, a debit card is very useful. However before, there has been fierce rivalry among credit card companies to entice several people as possible to purchase their credit cards. Every day, we receive phone calls and email offers from several banks for bank cards with ‘cheap rates of interest.’ Furthermore, some financial institutions even provide credit cards that are free forever.
Through proper research and evaluation of your requirements, you can make the credit card that best suits you the best. Pre-approved credit cards are appealing to a large number of individuals, however, do the banks offer low-interest pre-approved bank cards without doing any criminal background checks? Another question you should consider is whether you really require a pre-approved credit card. Before accepting any mastercard offers, give them careful thought because they’re a form of debt that may damage your CIBIL score temporarily.
What is a Pre-Approved Credit Card
Banks and other credit card issuers provide pre-approved credit cards. Although you may have received an email about one, the card will not be issued to you. This is a strategy used by banks and credit card issuers to entice customers by instilling a sense of luxury in them.
This psychological marketing ploy is dependant on the fact that customers frequently make an application for credit cards but do not obtain them. If you received an email regarding a pre-approved credit card, it simply indicates that banks and credit card issuers have records of folks whose CIBIL score is within the acceptable range.
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 exposed to a second round of checks by the bank or mastercard 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:
- 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.
- 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 to be able to remain at the top.
- The rejection of a pre-approved mastercard application can cause a significant influence on your CIBIL score.
- Waiving the annual charge for a credit card is not exactly what a customer expects from a ‘lifetime free credit card.’ This is merely a short-term reduction, and the credit-based card won’t be free forever.
- When the expiration date approaches, you can find trapped in many different scams. For instance, the credit card provider might not offer proper contact information or fail to evidently state their conditions and conditions. You can also have to pay a huge sum of money to get 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 issuers take benefit of the illusion of ‘easy entry to money’ to attract customers. However, this will not imply that you should refrain from obtaining a credit card. If you clear the bank’s second round of credit history examinations, you are fully qualified to purchase your credit card. However before, before you acquire one, it is essential to examine lots of factors.
First and foremost, you should determine if you truly require one. If you have a very high CIBIL score and desire a pre-approved credit card, you should apply for one. However, in case you have outstanding debts on your other bank cards, you will sink deeper to the depths of debt. Thus, in such situations, it isn’t smart to obtain a pre-approved credit card. Visit this website to get more insight.
Another thing you should think about is whether you can afford a pre-approved bank card. That is significant because even after all of the offers that include a debit card, there are numerous fees and interest levels included. Therefore, you must be completely with the capacity of making these payments. When you have even the slightest concern, you should not obtain 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 obtain a pre-approved mastercard if you already have a credit card but are dissatisfied with its twelve-monthly fee, interest levels, or reward schemes. It is also important to understand the conditions and conditions of the new card before applying.
Also, make sure that you do not have any outstanding debts on your previous credit card. A debit 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 make use of it and pay your mastercard bills on time. Likewise, before applying for a pre-approved credit card, be sure you take into account every detail regarding it like its customer reviews, features, policy documents, etc.