Pre-Approved Credit Cards
The term "Pre-approved" may be a misnomer. Unless you are on a first name basis with you banker, you are not getting Pre-approved for credit. You may be "pre-selected" to receive an offer - which simply means you have good credit.
The major credit card companies and banks that rely on their marketing expertise are not in the business to lose money. They do, however, try to open as many new accounts as possible. Without new accounts their business stagnates. In order to get these new accounts, every effort is made to push credit on to everyone who inhales a breath of air. Pre-approved offers for credit, and make no mistake these are only "offers" and are available to many individual. Providing, of course, a recent scan of your credit report does not include bankruptcy.
Here is how it works:
The marketers (read banks and credit card companies) have access to credit reports. A service provided by the big three credit reporting agencies (TransUnion, Equifax, and Experian), and paid for by the marketers. So your credit report, and mine too, is constantly being scanned. When the software runs across a candidate that meets certain criteria, an offer is generated and sent off to the consumer. Now the offers vary depending on the criteria and credit rating of the target customer. This is fairly noticeable when all of a sudden you will get a mailbox full of very similar offers from the banks and credit card companies with very similar offers.
Now, if you've been paying your bills on time and have a low balance and your available credit is not over a certain percentage of your total credit, then you are considered a low risk. The offers that you receive will be in a category, perhaps one that offers "Pre-approved" credit offers.
No matter what the banks offer you, there is no guarantee that you will receive it. All of it is subject to a credit check that is based upon the banks criteria for issuing credit. Some of the larger companies are often more fussy about who they give credit too.
Of course, these low risk customers are worth the effort because the rate of non-payment is far below that of other customers who are at higher risk. The companies compete heavily for these gold-ball clients. Hence, they send out "Pre-approved" offers on a regular basis - just to see who may bite.
If you would like to know more about which cards are PreApproved - just click on the links.
GOOGLE ONE
AMAZON