Pre Approved Visa Offers: Are They Worth Taking Up?
Pre approved Visa credit card offers are commonly found in our mailboxes. This article explains a little bit more about offers of this type, discusses how they work, and looks at whether or not a pre approved visa card is a good financial tool and worth applying for.
Although other methods such as e-mail and direct telephone calling can also be used for an offer of this type, a bulk mail out is by the far the most common method that credit card companies use to promote certain Visa cards. Note that we use the word certain here, as offers of this type are almost always related to ‘bad credit’ credit cards.
These types of credit cards are primarily aimed at those with low credit scores, and who otherwise may not be accepted for a new credit product. The customer will be sent a letter or flyer indicating that they have been pre-approved for a new credit card, and they should reply if they are interested in receiving the card. By pre-approving a customer for a certain Visa card, credit card companies give out the impression that the recipient of the mail shot will definitely be accepted for the card in question, and that no credit check will be necessary. This, however, is not the case, and those who are tempted to request their pre-approved card should be aware of several facts before doing so.
Firstly, having a pre-approved visa in your name simply means that you are on a pre-approved list and not that you will definitely be accepted for the card. You will still have to go through the regular application process, which will almost certainly contain a credit check.
As a result, if you have a low credit score or a checkered credit history there is every chance that you will actually be rejected for the credit card. This can further damage your credit rating, and reduce the chances of you being accepted for new credit product in the near future.
It is also important to be aware that the interest rate displayed on the promotional mail shot is not necessarily the rate that you will receive. A common ploy is for credit card companies to advertise rates as low as 9.9% APR, but actually give cards of this rate to just a few people, with the majority of applicants receiving rates above 20% APR.
Pre approved Visa credit card offers can sometimes be worthwhile applying for, but in the vast majority of cases you will either be rejected for the card, or receive a card with a low credit limit, a high interest rate and a number of fees and charges.
If you considering applying for a new credit card, it is much better to do your research and select a card that suits you and can help rebuild your credit rating, rather than any old pre-approved Visa card that has been offered to you. Always read the cardholder agreement before applying for any credit card, otherwise you could be in for a nasty shock.
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