A declined credit card application is like a stamp of disapproval on your credit history. To elaborate, if you apply for a credit card and go through the whole process of inquiry, only to be rejected in the end, it will affect your CIBIL score and impact your ability to access credit in the long term. It might cost you roughly about 5 points per rejection, but a series of rejections are more than likely to cause you serious credit score issues in the future. Moreover, every time you apply for a credit card, you lose 5 points off your credit score. In the case of a rejection, you’ve lost a total of 10 points right there.
In India, as of 2019, there are three credit cards per 100 people. This translates to only 3% of people having credit cards. Clearly, a large number of applications are being rejected.
To avoid this rejection and the consequent impact on credit score, many Indians prefer to go with a pre-approval process, rather than applying without testing the waters.
Besides this very serious factor, people also prefer to get a bajaj pre-approved credit card to avoid the humiliation involved with being rejected and to save time and effort wasted during the whole application process.
What exactly is pre-approval?
Pre-approval means that the bank or non-banking finance corporation (NBFC), will very simply do some routine inquiries related to your income and your finances. However, it will not be a formal inquiry. They will get all the key details and information that will tell them whether or not you fit their target set as a brand and whether you fit their target audience for the specific card in question. This process is not reported onward and their findings will not affect your credit score. Since you have not applied, per se, there will be no indication of the said inquiry on your credit report. If you are found to be eligible, the process goes forward and you obtain your credit card. If you are found to be not eligible, you do not get your credit card but at least your chances of getting one in the future are not hurt.
Where one I look for a pre-approved card?
1) In your Inbox
Most banks and NBFCs send out promotional emails to their customer databases for products such as pre-approved credit cards and pre-approved loans. You can sift through them to zero in on banks and NBFCs that are renowned, or that you have worked within the past. Careful to not respond to any of the emails directly to avoid falling into any phishing traps. Instead, contact the bank or NBFC and approach them with the email that claims you have a pre-approved credit card waiting for you.
Recipients of such emails should however be aware that pre-approved credit card offers are often sent to an entire database and you might be found to be ineligible upon taking a microscope to your earning potential or some other factor linked to credit card approval. Receiving an email about a pre-approved credit card, sadly, does not mean that it is a done deal.
2) Online pre-approval
A shorter and quicker process might be to visit a bank of NBFC website and look for any quick and easy pre-approval calculators or offers available. For example, applicants looking to get a pre-approved Bajaj Finserv RBL Bank SuperCard simply need to key in their first name, last name, and mobile number on the Bajaj Finserv website, in order to get their pre-approved credit card process rolling. Users who key in their mobile number automatically sign up for the pre-approval process and will be contacted by the Bajaj Finserv RBL Bank SuperCard team for a more in-depth evaluation of their credit-worthiness. After all, the brand would want to know if it’s safe to give you amazing perks such as the emergency advance facility and welcome rewards that are only a portion of its buffet of benefits.
Tips for the pre-approval process:
Now before you start day-dreaming about the moment you key in your rbl credit card login details in order to shop till you drop, understand that getting pre-approved does not guarantee that your application will go through smoothly. Be sure to provide complete and accurate information during the pre-approval process. Hiding details at the pre-approval stage helps nobody because the bank will eventually find whatever debt or inflated income you gloss over in the pre-approval strange. And when that happens, you might have to say bye-bye to those credit card login credentials you were hoping to receive.
What are my options if I do not get pre-approved?
There are a ton of options out there. You can try for another card from the same bank or NBFC or simply try at another brand. At best, you may need to improve your credit score before you can get your hands on your very own credit card login credentials. This kind of credit card is backed by some sort of payment as collateral. Be diligent with the payments on this card and you will improve your credit score in no time.