If you hold a valid FICO score with at least one national credit reporting agency, you are very likely to receive a pre approved bank card offer in the mail. But among the 3% of recipients completing and returning the application, only some 1.5% if not less actually get approved. Why is that and what are you required of to qualify for that enticing card offer sent by a major bank?

Most people think if they've been pre approved, there will be no hassle going through the formality of the application process. Now they don't have to spend hours searching and comparing products online to find the only right variant. Hardly anyone knows how the bank chooses a potential customer and what eligibility requirements it will use to finally approve or reject your application.

Banks benefit from pre approved applications to grow their customer base and streamline business. It makes them target their offers to most suitable and good risk applicants rather than to everyone on the list of a credit bureau.

It is natural that most of pre approved offers are meant for valuable customers and come with 0 introductory or low rates as an incentive. It does not make difference for a bank which type of account should be opened. The key is to get a substitute for a customer who quits. So, if you are a business owner, you'll get a business card offer, if you go to college - check your mail box for a student bank card.

The bank makes a pre approval decision based on the data it received from a national reporting bureau. Consumer data is collected and sent according to some minimum bank's requirements which are determinants in the mail solicitation campaign.

The fact that only the minimum qualification standards are used is the catch here. Meeting the standards means that you're only approved to apply for the card but not actually receive it. To open the account with a top card company you'll have to comply with a whole list of more specific requirements, which will be processed once your application is complete and sent. Your income status and employment history will be closely assessed, along with some other data from your financial and personal background.

The final check is also needed because there may be changes for the worse in your credit report since the first sweep. A single late payment or bad balance-to-limit ratio which hurt your scores may lead to a rejection.

What could be done about it? If you recently failed to make a payment, you'd better not fill in the application, no matter how attractive it is, as a denial will hit your scores. Instead, start work on cleaning up your payment records. Catch up with the late payment and reduce card spending for a better debt-to-limit ratio. If you've accumulated a number of high interest bills, try to consolidate them onto a lower rate balance transfer card. It will take some time to settle things up, but after a while of making smart decisions, you'll qualify for a really great pre approved deal offered online or through the mail box.

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