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How credit card companies select you for pre-approved offers


It’s important to note that any pre-approved offer doesn’t imply that an offer is guaranteed.

How credit card companies select you for pre-approved offers
You must have received a number of credit card offers through messages and emails, some claiming they were pre-approved. Ever wondered what they are and where they came from?
Well, it’s important to note that any pre-approved offer doesn’t imply that an offer is guaranteed.
According to Adhil Shetty, CEO, BankBazaar, it simply means that based on the information regarding the credit history and income the individual has at hand, the credit card company or bank finds him/her eligible for a card.
“The bank or credit card company will conduct a second round of assessment before they finally issue the card, and it is possible that he/she may be rejected in this round despite having pre-approval,” Shetty stresses.
According to Abhishek Soni, Co-Founder of Upwards, most companies select customers based on a mix of their bureau score, employer grade, in-hand salary and demographic profile.
“However, these are not the only criteria,” Anil K Pinapala, Founder and CEO, Vivifi India says.
“Credit card companies may even send out such offers hoping to benefit from them. So, it’s always wise to evaluate every offer and pick only the ones that make a significant benefit, match the needs and lifestyle,” Pinapala suggests.
In the words of Anuj Kacker, Co-Founder of MoneyTap, “Credit card companies also get a lot of incoming credit applications, and not everyone is eligible for cards at that moment. What credit card companies do over time, is to create special programs, and make some offers that are customized and readily available for potentially good customers."
While pre-approved offers can be helpful, customers need to be mindful that the indiscriminate use of credit cards can pose a risk to their financial situation. It’s vital to do due diligence and understand the terms and conditions of the offer very carefully before agreeing.
“A pre-approved offer is good for users only if they are not satisfied with the current credit card company and they want to apply for a new one. However, it is important to consider each and every term of the offer before accepting the pre-approved credit card,” Pranjal Kamra, CEO – Finology, advises.
They should consider those offers on the basis of their needs, expenditure, and see if the offer does work for them. If they are a frequent flyer, for example, getting a lot of offers on frequent flyer miles might be the offer to go for.
The views and investment tips expressed by investment experts on are their own and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.
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