Last year, major players in the U.S. banking industry spent over $17 billion on marketing, in an attempt of putting pre-qualified credit cards in the hands of the best customers.
Now we all know that ads can make everything sound very tempting, but before accepting a deal on such a card, it’s best to know if they’re actually a good deal!
What’s a pre-qualified card?
First of all, it’s worth mentioning that when a company offers a pre-qualified credit card, it’s making it based on limited information, says Madison. To be more specific, we’re talking about those offers you find in the mailbox.
Using information like your name, ZIP code and a credit score range, it’s enough for card issuers to know which one of their offers you’re very likely to apply for.
They’re not always the best deal!
Not all credit cards are the same. Also, the advertised benefits can be different from the actual ones, based on the individual. If a specific credit card has a perk, it’s a good idea to compare everything and look up all the options a company offers, since you can even end up with a better offer!
Analyze rewards cards from all points of view
Travel rewards cards are doled out in terms of points or miles pretty often, as some of them can be redeemed just through a bank’s travel portals or by converting them to cash. And these can be bad deals!
Points and miles that are redeemed through a bank’s portal can have an actual value that varies, compared to their stated value. Therefore, it’s recommended to have a credit-based rewards card, as well as a bank-sponsored travel portal just for finding the best offers, if you want to get the max out of your rewards.
A pre-qualification notice can help your credit card score
If a card company approves your use of a pre-qualified card, you can use this as a guide for understanding what other cards you can qualify for. Being qualified for a top notch rewards credit card means that you have a credit score that’s high enough to choose any card you want, for example!
