Pre-selected is an invitation offer to apply a credit card or a bank loan. Pre-selection happens when a credit card company or a bank requests from a credit bureau a list of names of individuals who meet certain borrowing criteria.
The offer is not a pre-approval, as it still requires one to submit an application for the credit card or the loan. On receiving the application, the lender then checks the credit report of the customers to determine if he qualifies, the borrowing limit and the interest to charge. The credit reporting agencies determine the credit worthiness of an individual by checking the credit score and history of borrowing and repaying of loans and other forms of credit.