Applying for a new credit card can be intimidating; one mistake and your whole application can get delayed or rejected in spite of having a good credit history. Pre-approved credit cards can help you evade such stress altogether and minimise the impact on your Credit Card.
In the blog, we will provide detailed insight into the working and the benefits of a .
What is a pre-approved credit card?
A pre-approved credit card is an offer from a bank or financial institution for selected customers who have consistently met the eligibility criteria for a credit card at the respective bank. Financial institutions determine who among their customers is more likely to get a credit card approval based on their credit history.
Based on this data, they offer their customers a wide choice of that fit their profile, spending habits and annual fee requirements. This is a great way to navigate among all your credit card applications to the one you are most likely to get.
How do pre-approved credit cards work?
Step 1: Pre-screening by the bank
Banks use their customer data and their credit history to determine who is eligible to get a Credit Card as per their criteria. If you have a stable income and a strong repayment track, then you are likely to get a pre-approved credit card from your bank.
Step 2: Receiving an offer
Once your bank has examined your credit data and feels that you are a worthy candidate, they will reach out to you via calls, emails and even SMS, notifying you of the same along with the benefits that you are eligible to receive.
Step 3: Submitting a credit card application
Even though you have a credit card that has been pre-approved for you, you still have to apply to retrieve it. This application will carry all your essential information, from your income details to your ID proof and other documents asked for by your bank for KYC.
Step 4: Final verification and approval
Once your bank receives all your documents, it will examine your application and profile in depth before approving a credit card.
Benefits of a pre-approved credit card

• Higher chances of approval: Since the offer for a credit card is coming from the bank, it carries a higher chance of approval. A bank or any other financial institution generates such an offer only after observing your eligibility and credit history, and hence, you are likely to get approved faster than the rest.
• Faster processing: Pre-approved credit cards get processed faster since a part of the research is already done before sending in the pre-approved credit card notification. Hence, once the customer submits an application, the process is pretty much smooth and fast thereafter.
• Exclusive benefits: Many pre-approved credit cards come with special rewards, lower interest rates, and higher credit limits compared to standard applications.
• Minimal impact on credit score: The pre-approved credit card process does not impact your credit score. A hard inquiry can cause your credit score to fall, but that is a temporary drop and gets back up quickly in a few days.

In a nutshell
A pre-approved credit card is a hassle-free way of getting a credit card with limited chances of rejection. If you have a pre-approved credit card, make sure you review the terms and compare the benefits to ensure that it aligns with your financial goals.
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