Don’t Throw Away Pre-Approved Credit Card Offers. Here’s Why
As users, it is annoying to receive loans and credit card offers in email daily. Most of the time we do not consider it twice and send them to the junk folder. If you have ever committed such an act, this blog will reveal how a pre-approved credit card offer can be a boon.
What is a Preapproved Credit Card Offer?
Pre-approved credit card offers are primarily those that credit card companies send to their users after checking the essential criteria. Credit card companies merely check the consumer credit bureau in terms of viewing who tops the credit card lists. Pre-approved offer is the indicator that sends a straight message to the users that their payment history has been handled deftly. This offer often comes with those users with a pretty low credit score. The difference between getting the offers in the mail and getting approved differs.
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Preapproved Credit Card Offer is Beneficial:
Credit card offers are often stuck in the user’s mailbox, and they are unaware that they are eligible for such offers. In such cases, pre-approved credit cards offer to open different card options before the users.
- Sign-up bonuses on the reward credit cards
- Earnings at the initial days with cash back credit cards
- Reward points on the shopping
- APR offers on the balance transfer credit cards
- Reasonable interest rate
Issuing One Card would be Enough:
The pre-approved credit card online provides opportunities for the users to issue one card instead of several ones. Upon the credit card requests from the users, credit card companies run hard research on the credit history that eventually impacts the profile. The chances of approval are higher if the pre-qualification is there. Pre-approved credit card online, in such a case, would be the feasible option.
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Lesser Burden for the Users:
With decent credit scores, lenders can offer credit cards with lucrative offers. Users do not need to do a hard search for which credit card they should opt for. In this case, lenders make it easier for newbie users.
No Dent on the Credit Score:
If the credit card companies check the profile for the pre-approved credit card offers, there would not be a dent in the credit score. It will be deemed as a soft check.
Chances to Remediate Credit Score:
Often, credit card companies offer pre-approved credit card offers on cards to give a chance to the users to work on their poor credit scores.
Competitive Interest Rate:
Credit card offers often come with a high-interest rate. If users have pre-approved offers, they may get a reasonable interest rate on such card offers. Otherwise, the card interest rate without the offer can be a bit higher.
Debt Consolidation:
Some lenders offer credit cards with 0% introductory APR for a period. In such a case, users can pay back the higher interest rate on another card. This is how pre-approved credit card offers with 0% APR charges could save the balance.
Rewards and Bonuses:
If the main lookout for the credit card is to gain rewards points or travel bonuses, pre-approved card offers are loaded with such benefits. Users can gain credit card reward points through such pre-approved card offers.
Lesser-Known Facts about Credit Score Associated with Pre-approved Offers:
The question often pops up whether pre-approved offers decline the credit score. The answer is no because lenders do the soft check regarding the users’ basic inquiries. But it never impacts the credit score. If the users take the next step of applying for credit card offers as the hard search from the lenders will set in. In that time, the credit score can inch down to a few points that can be remediated if credit products are dealt with well and the payment for such is handled immaculately.
The pre-approved card offers are such that the lenders come to the users. Hence, the users do not need to put such efforts into finding the appropriate card option. What could be done is that users can read the terms and conditions before going ahead with the pre-approved offers and check the interest rate or the late processing fees if there are any. Such a cautious step before the application would save the interest rate and ensure a good credit score.
