What Is a Pre-approved Credit Card & How Can You Get One?

Ever seen a text message saying, “You’re pre-approved for a credit card” and wondered what that actually means? It sounds like a done deal, but is it? Pre-approved credit cards are popular because they seem easy to get and often come with perks like shopping deals, discounts, cashback and OTT subscriptions, among other features. Before you hit ‘Apply’, it is important to know how these offers work, what banks look at, and what kind of charges might come with them.

Pre-approved credit cards may look attractive and convenient to secure, but it’s advisable to evaluate all key factors before choosing any such cards.

What does a pre-approved credit card mean?

A pre-approved credit card is essentially a personalised offer from a bank or financial institution, suggesting that you meet their basic eligibility criteria. This is usually based on a soft credit check, which doesn’t affect your credit score, unlike a hard inquiry that happens when you formally apply for a loan or a credit card.

A pre-approved credit card offer doesn’t guarantee final approval. It simply means the lender thinks you are a potential customer. You will still need to complete the application process, and the final decision will depend on a review of your credit profile, income and other details.

How do you get pre-approved credit card offers?

Banks and credit card companies often send pre-approved credit card offers through mail, email, text messages, or app notifications. But how do they decide who gets these offers?

Lenders typically conduct soft credit inquiries. This is to find people who meet basic criteria like a decent credit score, steady income, and a clean repayment history. Based on this data, they shortlist potential customers and send out offers.

You can also take the first step by visiting the websites of any credit card issuer to see if you are pre-qualified.

You can also explore multiple pre-approved credit card options through digital lending platforms like Moneycontrol. In partnership with leading credit card companies, Moneycontrol offers access to multiple pre-approved credit cards through its app and website. You can also apply for these cards in a 100% paperless process. Most of these cards come with zero joining and annual fees.

How to increase chances of a pre-approved credit card offer?

If you are looking to increase your chances of receiving a pre-approved credit card offer, here are a few simple steps:

• Always pay your bills on time.
• Keep your credit card balances low, ideally below 30% of your total credit limit.
• Maintain a healthy mix of credit types (like loans and cards) and avoid frequent hard inquiries.
• Sign up for pre-approval checks on bank websites like American Express, Capital One, and Discover or use trusted comparison tools like CardMatch to find targeted offers.

How to get a pre-approved credit card?

Lenders contact you: Banks do soft credit checks and send offers if you meet their criteria.

Check online: Visit bank websites to see if you are pre-qualified. This often leads to pre-approval.

Maintain good credit habits: Pay on time, keep low card balances, and avoid frequent loan applications

Zero annual fees credit card

Pre-approved credit card interest rate and charges

Even though pre-approved credit cards are easy to apply for, they can still come with various charges. These may include annual fees, balance transfer fees (typically 3-5%), late payment charges, foreign transaction fees, and interest on unpaid balances.

A pre-approved offer doesn't mean the card is free of costs. Always check the fine print to understand the full list of pre-approved credit card charges before accepting any offer.

Advantages of pre-approved credit card offers

Pre-approved credit card offers come with several advantages.

Pre-approved credit cards don’t affect your credit score initially, since they are based on soft checks. They help you compare interest rates, limits, and rewards easily. The process is quick and often provides instant decisions. Many offers come with perks like 0% intro APR, cashback, or sign-up bonuses.

Pre-approval isn’t a guarantee. Your application can still be declined after a full check. Watch out for hidden charges like annual fees, 3-5% balance transfer fees, or foreign transaction costs. A drop in your credit score can affect final approval, too.

If you are looking forward to applying for a credit card, you can explore multiple options via the Moneycontrol app and website. Moneycontrol has partnered with top banks and NBFCs to offer credit cards with a range of benefits. You can apply for these credit cards in a completely digital process. These cards offer multiple benefits for a range of needs, like travel, shopping, OTT subscriptions and restaurant deals, among others.