Why do banks do this? Pre-approvals/approvals for tiny tiny limits.
I keep no-fee/pay as you go accounts at all banks. Just in case...
TD pre-approved me for a credit card with the tiny limit of $500. So i guess they trust me... but only a little bit. Lol
I also seen people with very bad credit (write offs & collections) get granted small limit credit cards between $300-$500. From Canandian tire and walmart. I suspect ct and walmart do this to increase loyalty to their brand. They risk a small amount to people with bad credit. Just a few hundred.