Question: What is Credit Card Pre-Approval?
Answer: Those credit card pre-approval offers you receive in the mail are misleading. You’re not guaranteed to receive the credit card, even though the credit card issuer sends you a letter saying you’re pre-approved. Being pre-approved simply means the card issuer has done a basic credit check and found that you meet certain criteria. You still have to put in an application. That application could be denied, though, based on your credit history, income, or debt.
Even if you’re approved for the credit card, you may not receive the terms listed on the pre-approval letter. The credit card you’re approved for could have a different credit limit, APR, or other terms.
