Pre-approved loans

Pre-approved loans

received by credit card

Many a times mails have been received by credit card owners or bank account holder that you are eligible for pre-approved loan. Sure, this would definitely make a person feel good as it assures about the credit-worthiness about a person.

plans about the next purchase

If you are making plans about the next purchase, whether a home or a car on the pre-approval, there is likelihood of getting rude shock. Majority of the times, it so happens that the banks put it on the mail the amount 10 lakh but later on you realize that the amount is very less or there is no eligibility at all.

Credit card companies or banks send mails to customers

Why is this happening? Credit card companies or banks send mails to customers for hooking the customers. Majority of the times, mails are send to mass customers. Owing to this, complete diligence is not done such as earlier loans, documentation or credit scores.

wants a pre-approved loan

When one actually wants a pre-approved loan and when he searches this months old letter or mail for showing to the lender, you would definitely be very surprised. First, all kinds of documents would be sought wondering how the letter was issued if they weren’t having surety of the loan repayment capability.

 calling about eligibility and negotiations

Then, they would start calling about eligibility and negotiations. After all that, you need to be a credit or an account.  Bank managers explain that pre-approval is done on the basis of details that the customers provided during the time of 1st loan. These details have to be updated by the bank especially salary and employment ones for confirming that the customer is having an ability of repaying the 2nd loan too. If personal loans are offered to a borrower, there is another loan that the customer avails from other banks, which has chances of being rejected. These loans may be refused if one has defaulted on 1-equated monthly installment of home loans.

Jun 18 2017 10:51PM