Buried in the fine print of your credit card application, cardholder agreements, and correspondence from the company are provisions that can affect your application and increase finance costs. Here is one trap to look for in tiny type. Pre-approved cards often come with hidden catches; don’t assume you’ll automatically get the card or receive the interest rate quoted.
Card issuers can reject pre-approved applications based on credit criteria. Reasons can include your bill paying record and how short a period of time you’ve lived at your current address. If you don’t meet the criteria for the promoted lower rate, the issuer may reject your application or send you a card with less attractive terms. Although the fine print warns you that your credit will be reviewed, many people have no idea that additional credit factors will be considered before the card is issued.
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