5 Things You Need to Know About Pre-Qualified Credit Cards

American banks spent $17.1 billion on marketing in 2016, according to EMI Strategic Marketing, much of it spent putting pre-qualified or pre-approved card offers in the hands of its ideal customers. But before deciding on offers you find in your mailbox, it's wise to check to see if there may be better deals and rewards lurking online. Here's how to find the best deals, and separate the best from the worst.

When a card company makes a pre-qualified or pre-approved card offer, it's making it based on limited information. One popular card issuer asks only about your name, the last four digits of your Social Security number, and your address to decide on the cards it can pre-qualify you for, for example.

Targeted offers you find in your mailbox -- those that you don't seek out on your own -- are often sent to you based on limited information. With as little as your name, ZIP code, and a credit score range, credit card issuers have a good idea of which one of their cards you're most likely to apply for, and which cards you actually do qualify for.

Source: Fool.com