Things You Need To Know About Credit Card Preapproval
Getting those credit card preapproval emails in your mailbox can be exciting for you. But do you know what are the points associated with them? You need to check them very carefully if the interest rates are very low. Even if they are having good reward points it would be better for you to check the offers. And remember, there is nothing to get excited about them. A preapproved credit card offer does not necessarily mean that the card issuers have approved the card. Still you have to apply the normal way to get approved for the card.
Meaning of Preapproval
The issuers of the credit cards have a special screening process through which they find out which of the people are the right fit to become their customers. The card issuers inquire the credit bureau which maintains a list of the consumers who are having a good credit score and maintains certain accounts. If you are one that meets the criteria then you are sent a preapproval offer. This process is more like inviting you to apply for the credit card.
Detail about the Preapproval Card Offers
Most people mistakes the credit card preapproval for an approval of the card. But they are wrong. This is because even if you received an offer you still have to apply for the card. For that, you have to determine your credit score. This should be a good one for approval. Once you make your application for the credit card the issuers will look closer to your history of credit. The information that you provide them in your application will help them decide on your plea for the card.
If you qualify in all their criteria then the card issuer will provide you all the terms and conditions of the offers that they had mentioned in the preapproval. If not, the favorable terms and conditions will be a little less for you. In the worst case when you are not fulfilling any of the features they are seeking for you would be denied the plea. However, if such situations occur you can improve your scores or other things and then you can apply for the cards again.
If Denied Credit Scores Will Be Sent To You
Whether you are denied the credit card application or the company has agreed to give the card on some other terms, the company will send you a free copy of your credit score. This information can be made to use by you for a better chance of approval for securing cards in the future.
Choosing a Credit Card
You might receive several credit card preapproval but before you choose any one you are advised to check them for details. The offers in the mail you received might be attractive but if you shop around then there are more chances that you will get a better deal. The card issuer might even offer the credit card at lower interest rates, balance transfer, and usage rewards.
So, while you choose the credit card offers you need to be careful and know in details what you are choosing than getting surprises later.