According to the RBI, there are more than 30 financial institutions offering credit cards in India. Thus, the competition is considerably high among them. These companies provide various unique and industry-first features to stay ahead in the competition. One such feature is pre-approved credit card offers.
What are pre-approved offers?
Financial companies issuing credit cards provide pre-approved offers for their customers who seek instant approval of their applications. These offers are generally designed for existing clients having a higher CIBIL score.
Lenders check the credit score of an applicant before providing the pre-approved offers. These checks are soft enquiries and don’t affect his/her CIBIL score. They will also conduct a hard enquiry when you apply for a pre-approved offer on a credit card. These hard enquiries may affect your CIBIL score.
How to avail pre-approved offers?
There are two ways to avail pre-approved offers:
- A company can contact you directly.
- Avail them from the official website of a credit card company.
For example, Pre-approved offers ensure that the whole process of availing credit card or loan is uncomplicated and less time-consuming. Besides credit cards, these offers are also available for home loans, personal loan, business loans, and a plethora of other financial products and services. Provide only your name and phone number to check your pre-approved offer.
What do you have to do after receiving an offer?
You have to make a formal application to apply for the credit card. Financial institutions will require you to fulfil the other eligibility criteria like:
- Age between 25 and 65 years.
- Live in an area where the company operates.
Some organisations offering the best credit cards also require you to be an existing customer to avail pre-approved offers.
Once you meet the eligibility criteria, you should provide with the necessary documents. Here are the basic requirements.
- KYC documents – Aadhaar, Passport, Voter ID, PAN, Driving License, etc.
- Address proof – Latest utility bill, house rent agreement, any KYC document with your permanent address, etc.
You might have to provide additional documents to prove your occupation, income, etc. as well.
What the benefits of pre-approved credit card offers?
You can enjoy the following benefits with pre-approved offers:
- More lucrative rewards and benefits
Credit card companies may offer you more beneficial rewards and features if you are a pre-approved customer.
Few benefits that you might receive:
- No joining fee.
- Low or zero renewal fee.
- Lower rate of interest.
- Higher welcome bonus.
- Reduce impact on credit score
Applying for multiple credit cards results in hard enquiries, which reduce your CIBIL score. Going for pre-approved credit card offers can help you avoid the same. Your credit score will not reduce when you go for these offers.
Which pre-approved offer to go for?
Almost all credit card issuers provide pre-approved offers to individuals. You can apply for the best credit cards which come with numerous features and benefits.
- Interest-free emergency loan – You get the option to convert your unused credit limit into an emergency personal loan. Moreover, this loan comes with 0% rate of interest for up to 90 days.
- ATM withdrawal with 0% interest rate on repayment – Withdraw cash from ATMs without the need to pay any interest on repayments. This interest-free period may extend up to 50 days.
- Welcome bonus – Receive up to 20,000 reward points as a welcome bonus when you apply for the SuperCard.
- Milestone bonus – Earn up to 20,000 reward points on spending Rs. 3 Lakh in a year. You will receive another 20,000 points if you reach Rs. 5 Lakh.
- Reward points on daily expenses – The SuperCard gives you up to 2 reward points for every Rs. 100 that you expend. You also get 20 points for Rs. 100 that you spend on dining and overseas transactions.
- Security features – In-hand security and Zero-fraud liability cover security features help you shop online securely without becoming vulnerable to online threats.
- EMI product financing – You can convert the prices of your expensive purchases into EMIs and repay more comfortably.
- Fuel surcharge waiver – Get fuel surcharge waiver of up to Rs. 200 in a month.
- Offers on movie tickets – The SuperCard provides 1 + 1 movie tickets or 10% discount on them.
Make sure to compare the features and benefits you are receiving with other options before you avail pre-approved credit card offers.