Credit Card Education Guide

Pre-Approved Credit Card Offers

You have probably received a letter saying you are pre-approved from one of the many credit card companies on a weekly basis ever since you established a credit history. These letters can be very enticing, because it takes away the anxiety most people feel when submitting a random credit card application and not knowing if they will get approved.

The credit card companies are aware of this reaction from the consumers and use the word pre-approved deliberately, but you are in no way promised an approval on your application despite the letter you have received. They could have obtained your name and mailing address from someone else where you filled out a form that allowed 3rd party advertising.

You do have the option to opt out of pre-approved credit card offers. There are some benefits to keep receiving this type of offers even though you may be tired of all the mailings. You are given more product choices and it can help your comparison shopping for the best card. You could also receive unique offers unavailable to the general public.

This is a very common way of doing advertising for the credit card company and once the credit card companies get a hold of your mailing address the offers just keep coming. Targeted advertising through the mail is cheap and they know these pre-approved letters can get people to apply, but the fact is that they have only discovered a potential customer and there are no guarantees for approval. You still have to complete the entire application process and wait for a decision like anyone else.

A credit card company will not issue an unsecured line of credit without knowing details such as income, current job situation and details about your credit history. They can only get this information by getting you to fill out a credit card application and give the card issuer permission to do a credit inquiry.

Compare Credit Cards from Other Resources

Applying for a credit card is all about finding the best offer and don´t expect it to arrive in the mail-box where the credit card provider already has your full attention once you open the letter. Interest rates can vary greatly and comparing credit cards is essential. If you decide to apply for the first credit card offer that arrives in the mail you may end up with finance charges that are higher than they have to be. You can wait for other credit card offers to arrive in the mail and also go online to credit card comparison websites where they have done most of the legwork. Search for the type of credit card that match your credit rating and compare with the offers you have received in the mail.

It is important that you don´t start out by giving the credit card company a small victory by accepting anything but the best credit card. Don´t get lured by the words "You´re Pre-Approved" and do your due diligence before submitting the credit card application to ensure you are on the right path financially.

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