At a time, when financial entities are in crisis and at the same time are doing their entire bit to enhance their credit off-take, after pre-approved loan offers against your bank account with the bank, you might have also received a call to apply for a pre-approved credit offer. The case without proper thought could cost you heavily, if you are already under debt which you could not service for one or other reason.
Insta-credit card offers
These offers are available to pre-approved customers and within minutes of authentication, a virtual credit card is issued which can be used at a point of sale terminal. All a customer, needs to do it is link the credit card to the bank's app.
Nonetheless, you need to before opting these, carry out a detailed scrutiny in respect of the various substantial facets, check out on various terms and conditions and only in a case if you are in a true need of a credit card:
How you are selected as a pre-approved credit card customer?
The bank exercises a detailed scrutiny and on its basis few of the selected lot who fall in line with the bank's criteria of acceptable credit score range are approached and once they make an applications, banks then again carry out a due diligence process and on its basis if the person meets credit-worthiness requirement and credit score feasibility then the credit card is issued. In the otherwise scenario, when the credit score is faulty, a hard step could still further dampen the score of the person.
Does annual free membership on the card is actually the case in such cards?
No in the rarest of case it may be the case, but in most of the instances it is just a marketing gimmick to lure customers to get into the deal. Only the initial annual charges may be waived off. Also there are no lower interest rates being offered as against what is being promoted by salespersons across the board.
When pre-approved offer is actually a good deal?
Also, there are other repercussions, if you take up the card and actually do not operate it as your credit score is affected negatively. In some of the cases, when your credit card is near its expiration, you are trapped in some of the fraudulent offers which you should definitely not go by.
The offer can be good only in a case when you are not satisfied with your current credit card issuer and consider the current offering to be comparatively good.