Pre-approval credit card offers are becoming increasingly popular as card companies attempt to solicit new clients in the face of record profits and all-time highs in credit card debt. Although the term “pre-approved” may seem straightforward, it actually has a much deeper and more convoluted meaning than one would expect. In addition to the “pre-approval” marketing tactic, card issuers also tend to offer additional incentives such as lower interest rates, long introductory periods, low or no account fees, and rewards programs. Unfortunately, every day there are hundreds of prospective cardholders that are given the false hope of pre-approval after being declined for several credit cards in the past. The following paragraphs reveal the truth behind what it means to be pre-approved for a credit card.
What Does the Term “Pre-approved” Mean?
When applied to credit card offers, the term “pre-approved” simply means that the recipient has been selected from a specific demographic or target audience, and may therefore be eligible for official approval. Credit card companies obtain personal information related to various aspects of an individual’s life from third-party sources, and then use this information to send out targeted offers to a the most suitable market. Ironically, most pre-approved credit card offers are sent to people with mediocre or poor credit, as these individuals are more likely to follow through with the full application process out of sheer desperation.
Avoiding Pre-approved Credit Card Offers
There’s nothing more frustrating than assuming that approval has already been granted, completing the application process, and waiting several days only to find out that true approval has been denied despite an alleged “pre-approved” status. To avoid pre-approved credit card offers, card holders need to be particularly careful when sharing financial and personal data with online merchants. This is especially true when enrolling in services that charge credit cards on a subscription basis, as such re-bill companies are more likely to share confidential details with third party companies like credit card issuers. Although it is illegal to sell the personal contact and address details of a customer without their consent, many deceitful online merchants have creative ways to gain the consent of the cardholder, such as employing deceptively worded checkboxes. As a last resort, it is also possible to contact the card company directly and issue a request to be put on the blacklist.
How to Compare Pre-approval Credit Cards
When comparing pre-approval credit cards it is best to consider all of the basic attributes that would normally be determining factors when selecting a credit card. This is because pre-approval credit cards are not actually a unique credit account type, they are simply conventional cards which are marketed with unconventional advertising techniques. Therefore, there are no special guidelines to follow when comparing pre-approval credit cards, even though credit card companies make concerted efforts to distinguish pre-approval cards from other cards of equal value.
Similar Posts:
- The Impotance of Business Credit Report
- Would You Apply for an Instant Approval Credit Card?
- 13 Ways To Prevent Identity Theft Of Your Credit Cards
- Online Credit Card Application Made Easy
- American Express Cards With No Annual Fee
Tags: Card, Credit Card
Recent Comments