When you receive pre-approved credit card offers, it typically means the card issuer has determined that you meet certain criteria after they run a soft credit check, which does not impact your credit. Your chances of getting approved could be higher if you continue to meet the issuer’s credit standards and have sufficient income when you apply. You may still need to apply for the credit card. The application process for a pre-approved credit card can be the same as for any credit card. You’d need to fill out the credit card application and then they’ll review it pending approval.
Think of these offers as invitations to start the actual application process. Your details will be used to conduct an eligibility check, which means your credit score will not be affected.
Benefits of Pre-Approval
As well as confidence that your application will be approved, pre-approval also comes with a few other benefits:
- Guaranteed interest rates – If pre-approved for a credit card, you will likely see a guaranteed interest rate figure.
Pre-Approval Vs. Pre-Qualification
Pre-approved and pre-qualified refer to a screening process that checks whether you’re likely to be approved when you apply for a credit card. Pre-approval offers act as a screening process. Credit card pre-approval is a form of marketing that credit card companies use to promote their cards to individuals with strong financial credentials.
Is Pre-Approval Beneficial?
Being "pre-qualified" for a card is a good sign. However, just because you’re pre-approved for a credit card doesn’t mean it’s necessarily a good deal. Pre-approved credit cards offer special bonuses and rewards. Plus, pre-approval only results in a soft credit check, which means your credit score won’t take a ding.
However, if your pre-approved credit card offer has perks or rewards that interest you and you have good payment habits, it might be a good card to consider. But there are reasons why it might be good to say no.
Potential Downsides and Precautions
Pre-approval doesn’t impact credit scores as the process involves a soft inquiry. However, if you apply and a hard inquiry is needed, your score may dip temporarily. Before acquiring a pre-approved card, ask if you need it. If you have good credit but existing card debt, another card could hurt your credit report. Consider your finances and whether you can afford the payments.
Can Pre-Approval Lead to Denial?
Can I be denied a credit card after pre-approval? Pre-approval does not guarantee approval if you apply. Your application can still be denied. Reasons for denial include insufficient credit history or income, high loan balances, or a drop in your credit score since the pre-approval.
To increase your chances of approval, check your credit score and improve it if needed. Being prepared improves your odds of being approved for a credit card.