Generally, getting Pre-Approved or Pre-Qualified For A Credit Card/Meaning? The offers can be a hell of work. However, if you do not know what you want, it can take you a long process to figure out the card that is excellent for you. Also, a Pre-qualified credit card offers to allow you to see a mix of pool credit cards that you will most likely be approved. The questions here are, but what does getting Pre-qualification for a credit card exactly means? How does it impact your credit score? And does it worth the effort? This we shall discuss in this article.
What Does A Pre-Approved or Pre-Qualified For A Credit Card means
When you receive from the Credit card issuer a Pre-qualified credit card offer, it is base on a little information. Card issuers always have a screening process to figure out which clients may be good for a particular credit card. In the screening procedures, the card issuers ask the credit bureaus for a list of consumers who fit certain criteria. If you meet up with the criteria, your name goes on the list and the credit card issuers send you a pre-approval offer. See it as an invitation to apply for the credit card rather than a firm offer for the credit card.
However, pre-approval does not affect your credit score, because the credit card issuers has not done a hard pull on your credit report. Then, if you decide to apply for the credit card, the credit card issuer will do a credit check that will resolve in a hard inquiry. The inquiry that comes with the application could hurt your credit score based on the other information in your credit report.
Methods of Pre-approved or Pre-Qualified for a Credit Card
The first method is call the ‘incognito’ method. This is when you get random offers, either in the mail or online, indicating that you’re Pre-Approved for a credit card. This happens because at a point, you gave information to credit card issuers and you didn’t opt out from that information being shared and they used it to provide you with a Pre-qualified offer.
The second method is more intentional. The intentional method happens when you fill out some necessary information to see what types of credit cards you qualify for. For example, some credit card issuers can offer you Pre-qualified offers based on nothing more than your name, address, and estimated credit score range.
Income: Pre-approved for a Credit Card
Income is also a trigger for credit card pre-approval. Have you ever wonder that whenever you log into your credit card account online asking you for your income? Don’t fret although, getting a Pre-qualification doesn’t affect your credit. It only impacts your credit score when you take action on the offer.
How To Find Pre-Approved Credit Cards
Often times, when you have not received a pre-approved credit card offer in the mail, it does not necessarily mean that you are not qualified. You’ll typically enter only your personal basic information like name, and last four digits of your social security number to check which credit cards, if any may qualify for. These pre-approval checks typically only do a soft pull on your credit report these means that it would not affect your credit score unless you ultimately decide to apply for a credit card.
Of course, if you constantly check to verify if you’re pre-approved for a credit card can save you the stress of applying for credit cards that is out of your class.
Why Credit Card Pre-approval offers Are Not what they seem
Generally, getting a Pre-qualification or pre-approval credit card offer does not mean automatic approval. You still have to make an application, on applying for the card, the card issuers will take a closet look at your credit history and the information on your application to decide if you actually qualify for the credit card.
Also, you get approval for the credit card with the same terms that were listed in the offer letter. A little less satisfying: you may be approved, but with less favorable terms than what was listed on the offer. For example, you may be approved for a higher interest rate or a shorter promotional period. A worse scenario is possible: you could be denied for the credit card completely.
Free Credit Scores After an Unfavorable Decision
when faced with denial during a Pre-Approved or approved but for less favorable terms. Or you are offered less because of your credit score didn’t meet the criteria. The credit card issuers will Send a free copy of your credit score used in the decision. You will receive a free credit report also because of the information in your credit card. You’ll have 60 days to request this free credit report. However, you can also use this opportunity to figure out what’s affecting your chances of approval. Then work with the information gathered to improve your credit score for future application.