What does pre-approval mean? This question is about Credit Cards

What does pre-approval mean?

This question is about Credit Cards

Bogdan Roberts, Credit Cards Moderator

@bogdan_roberts • 01/20/23 This answer was first published on 03/24/21 and it was last updated on 01/20/23.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Pre-approval means that a credit card company has made you an offer for one of their cards, usually via mail or email.

What you should know about credit card pre-approval:

Receiving a pre-approved offer means the issuer has done a soft pull on your credit report and concluded that you are a good fit. It also means you have high chances of acceptance if you decide to apply for the card in question. Unlike hard inquiries, which are done by issuers when you apply for a credit card, soft pulls don’t hurt your credit score. But they don’t guarantee approval, either.

While there are plenty of issuers that offer pre-approved credit cards, it's important to note that not all of them offer this feature. Also, until you actually apply for the card, you won't know for sure if you got approved for it.

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Dmitriy Fomichenko, President, Sense Financial

@dfomichenko • 08/05/16 This answer was first published on 08/05/16. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Pre-approval is a process under which a lender evaluates the creditworthiness of a potential borrower, deciding whether the borrower qualifies for the loan along with the eligible maximum lending amount. It involves a detailed check of the financial history of the borrower, including his income and expenses.

What's the difference between pre-approved and pre-qualified credit cards?

Pre-approved and pre-qualified credit card offers both indicate that a potential applicant is likely to be approved, but they are used in slightly different situations. Being pre-approved means the issuer sent you an offer, while pre-qualification usually means you checked your approval odds through the issuer’s website. However, the terms are often used interchangeably.

Both pre-approved and pre-qualified credit card offers have no effect on your credit standing, as issuers only use a soft pull...

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What does pre approval mean?

The guarantee that you will be approved for a particular financial product, should you wish to apply.

Pre-approval generally manifests itself in one of two ways. Credit card companies will often use publicly available information to identify consumers who comfortably qualify for certain credit card offers in order to more effectively target marketing. A consumer is more likely to sign up for a credit card for which they are assured of getting approved than respond...

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What does prequalified mean for a credit card?

Being pre-qualified for a credit card means the issuer has done a soft pull of your credit history and concluded that you are a good fit. It also means you have an 80%+ chance of acceptance if you decide to apply for the card in question. It’s very similar to pre-approval in those regards. The main difference is who makes the first move. If a credit card company sends you an offer, it’s probably pre-approval. But...

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