written by | March 21, 2022

The Untold Truth About Pre-approved Credit Cards

Most consumers have recently received emails from pre-approved credit card firms. If you're one of them, you're probably wondering how to respond. 

  • For instance, ICICI bank pre-approved credit card offers are a marketing strategy used by credit card companies to recruit new consumers. The banks have already combed through their databases in search of prospective consumers. They sent out mailers with their offers, but they didn't tell the candidates about the second phase of due diligence. It allows them to seize possibilities that develop due to these offers. It is ultimately up to you to decide whether to accept or reject it.
  • The best approach is to research and determine if the offer is worthwhile. Before selecting a particular card, it's critical to understand what you're getting into. Never accept credit card pre-approval offers without first reading the terms and restrictions. 
  • Even if you are given a card that meets your demands, you should know that these offers may not always work for you. While some suggestions may seem appealing, you should not sign up for them without first reading their terms and conditions. It's a good idea to perform your research on each bank to ensure you're eligible for the card. 

This post will cover some of the benefits and drawbacks of pre-approved credit cards. Keep reading to learn more about the hidden realities of pre-approved credit cards.

Did you know? 

Pre-Approved Credit Cards can be very useful for individuals with a good credit score.

What Is a Pre-Approved Credit Card?

The phrase pre-approved means ‘pre-approved’ or ‘pre-screened’, but the meaning isn't the same. While the term ‘pre-approval’ sounds great, there's some misinformation in the term. Generally speaking, pre-approval is when a credit card issuer believes you're likely to be approved for a credit card. That's a big difference from an actual approval.

  • The difference between pre-qualification and pre-approval is that the lender knows you are a reasonable risk. 
  • They've run the numbers and see that you're a high probability of being approved.
  • They also know that you're likely to pay the monthly minimum and make your payments on time.
  • If you're pre-approved, the issuer pulls your credit report and does a thorough review. They'll look at your credit report, income, and expenses to determine whether or not you'll be approved for a new credit card.
  • Once you apply for a new credit card, you will receive a letter stating that you've been pre-approved.

Also Read: What is CVV Code in Debit and Credit Card?

Find Out What Pre-Approved Credit Cards Imply in India

It is essential to understand the meaning of ‘pre-approved’ Credit Cards to prevent being a victim of a fraudulent operation or falling for one. This type of scheme frequently uses the phrase ‘pre-approval’ to entice consumers to apply for a credit card. 

  • However, it is crucial to remember that being pre-approved for a credit card does not imply that you will be authorised for one. 
  • Even if you're provided with a credit card without first applying for one, there's no assurance that the card is, in fact, a pre-approved credit card.
  • In addition to being pre-approved, this type of credit card provides the credit card issuer with the option to acquire a new client via the use of the card. 
  • Although this seems like a fantastic offer, it does not imply an actual approval rate. 
  • Determine the meaning of the term ’so-called’ pre-approval in the context of Indian law. Once you've determined this, you may continue to apply for a specific product or service.
  • When contemplating a pre-approved credit card, keep in mind that it does not imply a guarantee of credit approval. 
  • The word ‘pre-approval’ may refer to approval subject to certain conditions. In other words, if you have a high CIBIL score, you have a decent chance of being accepted. Before selecting a credit card, you must grasp the distinction between these two phrases.

Know the Indian Credit Card Terms of Service

For a positive credit card experience, you must check pre-approved credit cards Most Important Terms and Conditions (MITC) of the Credit Card Issuers you are dealing with. Being familiar with MITC can assist you in avoiding difficulties with the cards you use. 

  • The duties of both the issuer and the customer are outlined in this contract. It also includes a breakdown of the charges linked with the credit card. 
  • Before applying for a credit card, be sure you understand the terms and restrictions. Some credit card offers have promotional periods and spending limitations, while others do not. 
  • You should thoroughly review the terms and conditions. If you do not pay the whole amount due, you may be subject to financing charges. 
  • Make sure you read the MITC agreement before signing up for a credit card to prevent paying such fees later. Reading this material carefully before applying for a credit card is wise.

Effect on Credit Rating

It is a popular fallacy that monitoring your credit score does not affect it. In reality, it will have just a negligible effect, referred to as a soft inquiry. However, if you apply for a loan or a credit card, it will significantly influence you. 

Furthermore, making several hard enquiries might have a detrimental impact on your total credit score. Fortunately, you can do a few things to reduce your risk and boost your credit score.

  • First, you must comprehend the notion of credit ratings. Your credit score is a number that represents your capacity to repay the borrowed amount, and it may vary from 300 to 900 and is assessed by credit bureaus around the nation. 
  • A good score may allow you to more significant loan amounts, reduced interest rates, and a choice of tenure. While the range is extensive, several elements might affect your credit score.
  • One of the most common errors individuals make is disregarding their credit score. The average credit score in India is approximately 300; however, it is possible to improve it. A good credit score will allow you to get better discounts on loans and credit cards. 
  • You may apply for a loan without a credit check if you need money immediately. The most excellent approach to improve your credit score is to make sure you complete all of your payments on time. 
  • You should aim to pay off as much debt as feasible as fast as possible. It's the only way to assure you'll always be able to pay back your debts.

Read the Small Print Before Applying for Pre-Approved Credit Cards

 Whether you're looking for a new credit card or have an existing one, it's critical to read the small print before accepting a pre-approved offer.  

  • While you are likely to be authorised, carefully read the terms and conditions. 
  • A credit check is required for many pre-approved credit cards, and the provider may not even look at your credit record.
  • Many pre-approval offers include introductory rates, such as a zero interest rate on balance transfers or a low initial interest rate on purchases. 
  • While these low-interest deals may improve your present financial circumstances, keep in mind that you will soon be paying the same high rates.

Some organisations use the exact phrases for multiple loan products, but you should double-check them to prevent getting taken in by surprise. 

  • The word ‘pre-approved’ often indicates the same thing to both firms. 
  • Choose a secured credit card to earn a reduced interest rate. Because the issuer sees this as a risk, they will be more ready to credit you.

Also Read: What Is The Difference Between Overdraft (OD) and Cash Credit (CC)?

How to Get Pre-approved for a Credit Card

You will receive a pre-approval mailer from a credit card issuer. It essentially means that the issuer has determined that you will be approved. 

Although this means you have a greater chance of being approved, it does not guarantee that you will be approved. The credit card issuer will still check your credit report and score to ensure you are not eligible.

  • Getting pre-approved gives you a better idea of the terms of the credit card offer. If you've never been pre-approved for a credit card before, it might be worth checking out online offers to see if you qualify. 
  • Once you've been pre-approved, you can begin looking for the perfect card. Some credit card issuers offer the ability to make a decision right away. 
  • Usually, you can receive offers within two weeks. Then, you can choose which one best meets your needs. It may take several days to decide between the different options available. 


Obtaining a credit card with a pre-approval letter is one of the most straightforward methods to boost your credit score and secure your financial future. The most typical kind of pre-approval letter arrives in the mail.Banks often send these letters to grow their client base or strengthen their relationships with existing customers. These are prevalent and should not be overlooked since several solutions are accessible.Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.


Q: What does pre-approved credit card India mean?


If you have a credit card in India, you may have heard of pre-approved credit cards. While credit cards provide certain benefits, you should carefully read the terms and conditions before signing up for one. You should also make sure that the interest rate is appropriate for you. If you already have one, you should compare your current credit card to the pre-approved credit card.

Q: What are some of the other credit card scams we may fall for?


Malicious virus and bogus login URLs are included in phishing emails. These emails are often disguised as a fraud notification, saying something is wrong with your account. However, clicking on the link will take you to a fraudulent website where the fraudster will steal your credit card information and use it to commit identity theft. Never use a link in an email or a fraudulent website to access your credit card account. Instead, go to the issuer's website to access your account data.

Q: Should credit card firms use low-interest cards to deceive customers?


Many customers who were tempted by these offers paid hundreds of dollars in interest and are still paying the excessive interest rate. It's important to remember that specific bargains are only available for a limited time and will need payment to unlock. When you provide a scammer with your personal information, they will disappear and never return your call. You may be charged an extra fee for this service.

Q: How should I make use of a pre-approved credit card?


Pre-approved credit cards are often marketed as the most efficient way to create credit. While this is correct, you should consider the consequences of acquiring a new credit card, including the influence on your credit score. Although these offers are tempting, you should never sign up for them until you fully understand the terms and restrictions. The annual cost, interest rate range and awards are just a few things to consider before applying.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.