New Delhi, Nov. 6 -- Pre-approved credit cards have now become a common feature in the nation's banking landscape. The issuers generally reach out to select borrowers with these offers. Borrowers with solid credit profiles, high credit scores, and an impressive financial track record are given preference.

This creates an impression of instant eligibility; still, the reality has more to do with the clear understanding of this concept, as it can go a long way in boosting one's financial health. Generally, credit card companies pre-approve low-value credit cards with lower credit limits to reduce the risk of financial loss.

Animesh Hardia, Senior Vice President, Quantitative Research at 1 Finance, says, "Credit card companies mostly pre...