Credit Cards

Should You Or Shouldn’t You Take A Preapproved Credit Card?

Written by CreditSmart

You’re Pre-Approved! Do You Accept The Card?

Shewta received a text message stating that her bank has approved a credit card for her. To attain it all she needs to do is contact the bank’s branch nearest to her. 

Shewta had not submitted any application for a credit card to her bank or any other bank and so was naturally confused upon receiving the message. Could it be a scam was her primary concern. 

Contacting the bank made it clear to her that the offer was genuine. But should I take it was the next question vexing her. 

Shewta felt privileged on learning that her bank was offering a pre-approved credit card—and that’s exactly what the bank wanted her to feel. Many individuals fail to attain a credit card after much effort while here Shewta was getting a card without even lifting a finger!

However, this doesn’t mean she should take the card without giving it due thought.

Do I really need it?This is the first thing Shewta must consider. One should take a credit card only when one is a need of it, even if it’s the bank that itself is offering you one.

Should Shewta decide to take the card, she must understand that the term ‘preapproved’ doesn’t really mean that all she has to do is visit the bank to get her card.

The word ‘preapproved’ means that she is conditionally approved—and nothing more. There is no guarantee that she will get the card . Therefore, while Shewta might feel she is obliged to accept the bank’s offer, in truth there’s no need for her to feel so, because she would have to go through the same processing formalities that are involved in the processing of an ‘applied for’ credit card. She would also have to submit a formal application just like she would do if she were to approach the bank herself for a new credit card.

Moreover, the bank, should it deem right, can reject her application that was purportedly ‘preapproved’ for her. The bank can also choose to offer her the card with fewer favorable terms.

Even if Shewta is need of a credit card and the bank confirms her that it will offer the card with all the promised features, she should first ascertain if the card being offered is really the best one she can get.  When it comes to credit cards, you should not normally carry more than two or three at a time. Rather than carrying more credit cards, you should ensure that each card you carry addresses your specific needs and is the best you can get in that particular niche.

If the bank’s offered credit card is among the best in its segment, only then should Shewta apply for it—otherwise not.

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