What are Pre-Approved Credit Cards

Posted on Monday, September 23rd, 2024 | By IndusInd Bank

Usually, credit cards are a great relief for people. They allow people to have a backup if they ever run out of money and need more. You can use them in the time of any emergency, or you can avoid delaying the large purchase you have been putting off. But all this is only possible if your application for a credit card gets approved.

Pre-approved credit cards are a streamlined alternative if you want a credit card but don’t want the hassle of approval. This guide will explain what pre-approved credit cards are and how you can apply for one.

What is a Pre-Approved Credit Card?

A pre-approved credit card is one that a bank or financial institution is offering you. It is based on your credit history and financial habits. This means that the issuer has reviewed your credit profile, and it has been determined that you are eligible for a credit card. This means you won’t have to go through a full application process.

Pre-Approved Credit Cards Offer Several Benefits

• Quicker Approval: As you are pre-approved, the application process is usually quicker and simpler.
• Higher Approval Chances: Your chances of approval are higher because the issuer has already assessed your creditworthiness.
• Exclusive Offers: Pre-approved credit cards can come with exclusive offers or lower interest rates.

How Does Pre-Approval Work?

Pre-approval involves the credit card issuer conducting a soft inquiry on your credit report. A hard inquiry can affect your credit score. But a soft inquiry does not affect your credit score. If the issuer figures out that you meet their criteria, they may extend a pre-approved offer to you.

How to Apply for a Pre-Approved Credit Card?

Here is how you can apply for a pre-approved credit card:

1.      Check for Pre-Approved Offers

You will need to see if you qualify for a pre-approved credit card. Start by checking with your current bank or financial institution. Many banks, including IndusInd Bank, offer pre-approved credit card offers to their existing customers. Visit their website or contact their customer service for information.

2.      Apply for the Pre-Approved Credit Card

Once you have confirmed that you have a pre-approved offer, follow these steps to apply:

1. Visitthe bank’s website or visit a branch to apply for a pre-approved credit card.
2. Provide the required personal and financial details.
3. Review your information for accuracy and submit your application. The bank will process your application quickly because of your pre-approved status.

3.      Confirm Your Approval

After submitting your application, you will receive confirmation of your approval. The bank will send you the credit card details, and you can start using it once you receive the physical card.

Also Read: People with a Low CIBIL Score Can Still Get a Credit Card: Here’s How

Benefits of Pre-Approved Credit Cards

Here are the benefits of pre-approved credit cards you should know:

1.      Simplified Application Process

The application process for pre-approved credit cards is straightforward. You won’t need to go through a lengthy approval process.

2.      Faster Access to Credit

Pre-approved credit cards provide quicker access to credit. This allows you to make purchases or manage expenses without delay. This can be especially useful if you need a credit card urgently.

3.      Special Offers and Benefits

Pre-approved credit cards often come with exclusive benefits. These can include lower interest rates or special rewards programs. These benefits can enhance the value of your credit card.

4.      Enhanced Financial Flexibility

Having a pre-approved credit card can offer greater financial flexibility. It can give you quicker access to credit and fewer application hurdles. With this, you can better manage your finances and make purchases with ease.

Conclusion

Pre-approved credit cards are an efficient way to get credit with minimal hassle. Understand the pre-approval process and follow the steps outlined above. This way, you can easily apply for credit card and enjoy the benefits of faster approval and exclusive offers.

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.