Have you ever received a pre-approval offer in the mail? Or maybe you received a pre-approval offer via email? So you may have wondered, “what does pre-approved mean for a credit card?” let’s find out.
what is a pre-approved credit card offer?
When you’ve been pre-approved for a credit card offer, it means you’ve been short-listed based on specific criteria, including your credit and payment history. Lenders pre-screen consumers by requesting a soft inquiry to check credit and determine who qualifies.
Depending on these factors, you may be pre-approved for an offer. You may receive these offers from card issuers with whom you already have an account, or from affiliate partners who are looking for ways to promote their credit card offers. pre-approval offers can be sent by physical mail or email, or provided verbally via phone call.
A pre-approved offer suggests that you have passed the first step of the selection process. But remember: You can’t actually be approved for the card unless you apply for it. may seem like a promising candidate, but the lender will likely want more information to process your application.
pre-approved and pre-qualified credit card offers
Pre-qualification and pre-approval processes are different ways to review your credit card options.
pre-approved
If you received a pre-approval offer, the credit card issuer contacted you first because you meet the basic requirements. Pre-approved credit card offers differ because lenders already have the information they need to assess your creditworthiness.
prequalified
pre-qualification for a card indicates that you applied first and contacted the credit card company to see if you can be approved for the card you are interested in. The credit card issuer can then view your financial profile and show you credit cards and offers you may qualify for if you apply. It’s not a guarantee, but it’s a good sign.
how to get pre-approved for a credit card
In short, the card issuer needs to pre-approve you to get a credit card and then they can take action. Some people receive a pre-approved credit card offer in the mail, while others may need to fill out an online form to provide basic information to the credit card issuer. Ways to request a pre-approved offer include:
respond to an offer from a credit card issuer
One way to get pre-approved for a credit card is to request an offer that your credit card issuer has sent you by mail, email, or phone, also known as a “screened offer.” Although the mail may not be as popular as it used to be, pre-approved offers may appear in the stack. Offers may include an invitation code that you can enter when you apply.
request prequalification on the credit card issuer’s website
Most major credit card issuers that offer pre-approval have online links to a simple application form found on the issuer’s site. These forms will often ask you to provide basic personal and financial information. Once you’ve entered your information, you may be shown a credit card offer that the issuer thinks best fits your financial needs. your offer can be more personalized as it provides information about you. In this situation, you will first need to get prequalified to get pre-approved. once you’re pre-qualified, you may receive a pre-approval offer.
Does a pre-approved credit card affect your credit score?
Pre-approved offers, by themselves, generally don’t affect your credit score because card issuers conduct a preliminary inquiry rather than a comprehensive inquiry before providing a pre-approval offer. however, if you comply and request a pre-approved offer, the issuer may request a comprehensive inquiry, which will then be indicated on your report and may affect your credit score.
in summary
So, if you’ve been wondering, “what does pre-approved mean for a credit card?” I know you’re not alone and while pre-approval offers don’t guarantee approval, they may indicate that you have a better chance of being approved once you finally apply for that card.