ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If you’re receiving credit card mail offers, it means credit card companies have decided you might be a good match for one of their products. It doesn’t mean you’re guaranteed approval if you respond, although your chances are very good. And it definitely doesn’t mean you already have an open account.

Detailed explanation-2: -Credit card issuers routinely send attractive card offers to consumers with good to excellent credit. Therefore, when you receive these types of offers in your mailbox, it usually means credit card issuers believe you to be a good credit risk and want to do business with you.

Detailed explanation-3: -Applying for a new credit card can indeed hurt your credit score. According to FICO, a hard inquiry-when a card issuer pulls your credit after you apply-can lower your score by five points or fewer. However, the impact is temporary.

Detailed explanation-4: -Receiving a pre-approved credit card offer means the issuer has reviewed your credit information and decided that you meet at least some of their approval criteria.