Every day, individuals check their mailboxes and come across some special varieties of credit cards featuring low rates of interest, 0% intro APR balance transfers and excellent reward programs. If you find an offer for a preapproved credit card in your mail, you might be wondering which thing pre-approves you for the credit card and whether the credit card is good for you or not. There are some important things that you need to consider prior to applying for such credit cards.
How Do You Become Preapproved For A Credit Card?
When you get a prescreened or preapproved credit card offer, it means that the issuer of the credit card has gone through your credit in details and you successfully meet certain criteria. It also means that you will be approved for a credit card if you continue meeting the credit standard of the issuer and have enough earnings when you apply. Trans Union, Equifax and Experian are the main credit bureaus that maintain extensive databases of the credit information of consumers. This credit information is used by the credit card companies for marketing their credit card services to the new customers with good credit scores. The credit bureaus generally take the minimum standards for the credit card issuers and come up with a complete list of the consumers that fit certain requirements. These lists are used by the credit card companies for designing specific credit card offers to the well-qualified and eligible group of consumers.
What are the Advantages of PreScreened Credit Cards?
The prescreened credit cards or the pre-approved credit cards, as they are normally called, offer a number of advantages. These credit cards allow their users to see what is available along with the terms of the offer that can be better in comparison to the offers available to the general public. The offer available from a preapproved credit card can turn out to be very valuable when you might have the chance of taking the advantage of 0% APR promo rate for a time span of 12 to 14 months. It might also be valuable when you make a no-fee balance transfer to a certain card with a low rate of interest.
When to Apply for a PreScreened Credit Card?
There are obviously some advantages and disadvantages of the prescreened credit cards. However, you need to apply for these credit cards in certain circumstances that have been explained below:
- First of all, if your present credit card does not offer you complete satisfaction in terms of rewards and cash back while you are paying the bills on a timely basis for the credit card, then it would be best for you to go for a prescreened credit card. These credit cards might be very useful provided they come with the best benefits and rewards. However, it is important for you to carry out a thorough research prior to choosing such credit cards.
- Such credit cards are of good use for people with good CIBIL scores.
Pre-approved credit cards can always be a good thing provided you know how to use these credit cards properly.