No. of Recommendations: 3
There is an approval.
Yes - as I said, up to the limit of the card.
Once the card is issued, there is (typically) no prior approval required for any given purchase, up to the limit of the card. They will not conduct any further underwriting review or re-evaluation when you decide to actually exercise the card and have them make the loan. They will not, at that time, review what you're purchasing or whether your financial situation has changed. They don't know if you're buying a material good that might hold its value and be recoverable in the event you default, or if you're buying something that disappears instantly (like a massage or entry to Disneyworld or something).
Each time you use the card, the bank is making a pretty risky loan (relative to other loans, natch).
