People are aware that building up credit involves hard work and investment, such as buying tradelines that improve the credit score of an individual. So in order to keep themselves safe from the hassle, people choose the next best and feasible option that involves pre-approved credit cards.
Overall, people would like to pick those companies and specifically those credit cards that do not incur a hard inquiry on their credit line. One of the primary reasons consists of preventing the generation of a credit report issued by the three major credit bureaus that stays intact for two years. Stopping this from happening would not bring damage to the credit of those people that have a poor credit score.
Keeping in view of their credit situation, people would only like to go for a soft pull on their credit score. Going through this process, the customer’s credit would not be hurt, and the companies issuing credit cards would get sufficient information to evaluate the creditworthiness of the individuals and see if they are fit to prequalify for the card.
Pre-approval for credit cards allows credit card companies to carry out a preliminary assessment on the customers. This is done to segregate those customers that are a perfect match for the company as their credit score aligns with the credit cards that the firm has to offer. It is a precautionary measure to ensure that customers respect the card and pay its due in a timely manner.
The pre-approval process also brings in some perks for the consumers as they would look for those credit card offers that do not involve a through credit checking. In this way, the customers make sure that the company does not inflict any damage to their credit score.
This article will discuss the difference between distinct types of credit cards that includes pre-approval and pre-qualified. The article will further assess the way to get pre-approved credit cards. Moreover, the article will state the perks and drawbacks of acquiring pre-approval cards. Furthermore, based on customers’ responses and reviews, we will list down the best pre-approved credit cards.
Pre-Approved Versus Pre-Qualified Credit Cards
Certain credit card companies use the terms pre-qualified and pre-approved interchangeably, although, in some circumstances, pre-approved may indicate that you’ve been thoroughly checked. Some issuers, for example, may examine whether you’re pre-qualified only based on the information you give. They may also verify information in your credit record for pre-approval. Other issuers’ definitions of pre-approval and pre-qualification may differ.
The customer will usually request pre-qualification. In many circumstances, the process is carried out over the phone and can be done through an online survey. The intended cardholder gives basic financial information such as income, housing costs, and other assets.
After the material has been given, the lender makes an offer based on the details provided in the material. At this phase, the customer is given an idea of whether they are likely to be authorized, as well as an indication of the items or terms they may be approved for if they apply. Similar to the pre-approval procedure, the lender may have an inquiry with your cooperation at this time and generate an offer if you fulfill eligibility conditions.
In terms of the pre-approval, in most cases, the lender commences the investigation into a consumer’s suitability for its product. This is when the wide net comes into play. Companies typically seek a list of all persons who fulfill specified standards from credit bureaus. These constraints may have specific credit standing, no overdue payments for the year, or no bankruptcies in a specific place or location.
Lenders may also send a list of current customers to credit reporting bureaus to assist decide if you are a suitable fit for further goods. This information may assist in clarifying why you are receiving offers from financial organizations with which you already have an account.
How to Acquire Pre-Approved Credit Cards
Many credit card companies provide pre-approval for particular cards in their portfolio, generally ones aimed toward consumers trying to establish or restore credit. People can start the process by checking out the website of an issuer to get more details, but here are some more suggestions for being pre-approved for a card:
You should know what to anticipate
Pre-approval documents often request basic information such as your name, date of birth, and address. You will need to provide some details that would entail giving the final four digits of the social security number in order to conduct a soft credit check which will bring in any changes to the credit score of the individual. Your whole social security number may be requested by some credit card companies. This doesn’t always imply that they’ll run your credit, but read the paperwork thoroughly to make sure.
To compare various deals, use a comparison site
Several credit card comparison websites allow you to submit your information and view a list of cards for which you can be pre-approved. The advantage of this technique is that you may get pre-approved for several cards and may compare offers to choose which is best for you.
Navigate to the issuer’s website
The advantage of seeking pre-approvals directly from the source is that you have more influence over which cards you are pre-approved for, rather than being given just those having a relationship with the card comparison site.
Wait for the credit providers to approach you
In order to attract consumers, credit card providers will send mail for those with pre-approval invitations. This doesn’t happen as much these days, but it does happen. Just be cautious and study the tiny print before taking advantage of these deals. Some are merely marketing ploys. If it’s a genuine deal, it can be better than what you’ll find by searching online.
Advantages and Disadvantages
Before acquiring pre-approved credit cards, it is essential to understand the pros and cons of every card in order to know what to expect from these cards. Below are the advantages and disadvantages of pre-approved credit cards:
Advantages of Pre-Qualified and Pre-Approved Credit Cards
- A high acceptance rate is before affecting your credit score.
- Credit card providers may send out unsolicited offers with higher conditions or welcome bonuses than those stated publicly.
- Lower Interest rate
- A high welcoming bonus on reward cards
- Promotional reward offers to provide more balance points on a high transaction volume
- High earnings on cashback cards
Disadvantages of Credit Cards that are Pre-Approved and Pre-Qualified
- Identity theft can be made easier with pre-approved mailings.
- Due to different special offers, the consumer may be tempted to apply to more than one credit card
Best Pre-Approved Credit Cards
The Indigo Platinum Mastercard
With Celtic Bank, people have the monopoly to opt for a pre-approval process for some of the credit cards that they offer. This process is carried out before the customers have applied for the card. The screening process allows people to see if they have been approved for the card without asking for detailed information on their credit.
This characteristic of the bank makes it stand out from others as it makes sure that the people’s credit is not prone to any risk damage from the pre-screening of the card. The features of this carried are as follows:
- The fees range from anywhere between the range of $0 up to $99
- A security deposit is not needed or asked for
- A person can pre-qualify for a loan without jeopardizing their credit score.
- Get a credit card that you can use everywhere you see the Mastercard logo, including online, in stores, and in apps.
- Spending is worry-free with no accountability for illegal charges!
- The credit score can be made better and in a positive way.
Blue Cash Everyday® Card
The Blue Cash Everyday card is a type of pre-approval card offered by a credit card company called American Express. For an individual that spends openly on groceries and gas as part of his budget, then this card would suit them just fine.
One thing to note down is that the card requires customers to have a good credit score, so people would poor credit would fail to qualify. Nevertheless, the card offers a variety of features which are mentioned below. They are:
- No Annual Fee
- A transaction involving $2000 in a span of the first six months of using the card would bring in $200 statement credit.
- The card carries it with a low welcoming APR. The APR is 0% on purchases that were carried out after 15 months when the account was opened. After that the variable rate would be within the range of 13.99 per cent to 23.99 per cent.
- Buy Now, Pay Later: When you utilize Plan It® to break up major purchases into monthly installments, you’ll get a $0 initial plan charge. Plan costs are waived for the initial 15 months after account opening.
- People would get 3% cash back on a transaction up to $6000 for one year and then the cash back rate would be around 1% after that.
USAA Credit Card
Current USAA members may be interested in a few rewards credit cards offered by the company. There are mainly two kinds of credit cards offered by the company. They include Rewards Visa Signature card by USAA and Rate Advantage Visa Platinum Credit Card by USAA. While both of these cards have different features but they also have common characteristics that include Cash-back, and USAA RewardsTM is the key features of these credit cards.
In the case of the Rewards Signature card by USAA, the rewards are divided into two broad categories that include ‘unlimited rewards’ and ‘bonus rewards”.
For the first type of reward, the customer will get 2x points if the card is used for gas (fuel) and dining out. The customer will get 1x points on all other qualifying purchases that do not fall in the above mentioned categories.
For the second type of reward, the customer will be awarded straight on 2500 bonus points after they have made their first qualifying purchase.
To become a member of USAA, you must satisfy certain requirements, which are primarily geared toward military personnel and their families.
In order for people to receive pre-qualified offers with USAA, they should be the member of this financial institution. And hence only a selected number of people that are a military background can apply for this card.
Credit One Credit Card
Credit One is a credit card company that does not offer travel rewards cards, and only appears to offer a few distinct credit card options.
Because they specialize in helping people with negative credit, Credit One is an intriguing alternative for anyone trying to develop or repair their credit. Hence, it is often found that people with poor credit open an account at this company, and this also helps them build their credit.
Be warned that most credit card firms that target people with weak credit advertise their products with exceptionally high-interest rates and fees. As a result, the best way to check whether Credit One credit card is the best fit for you is if the person has received several appealing offers for cards from different card companies. So the person can compare and evaluate whether the pre-qualified card suits them or not.
The company inquires its potential customers regarding some questions that are not asked by other banks. These questions might include asking about their total monthly income, email address, and phone number. While some customers will not have a problem with answering these questions, others might be a little uncomfortable.
The company is also known to ask its customers their full social security number, but it guarantees full disclosure and ensures that this will bring no change in their credit score.
American Express Cash Magnet Card
One more card offered by American Express comes under the name of Cash Magnet card. The card offers the following features:
- Fee: $0 per year
- People can involve in a transaction of up to $1000 after three months of opening the account to which they would receive a 150 dollars statement credit. Terms and Conditions apply.
- Unlimited 1.5 percent Cash Back reward dollars, which may be used to get credit reports.
Alternative Pre-Approval Credit Cards
The company, Capital One, offers several types of credit cards for all types of customers. Some of those cards offer characteristics that resemble that of pre-approval.
The Capital One Platinum Secured Credit Card is suitable for people who have no credit history or are working to improve their credit status. So those people that have poor credit can get this card which aims to help them with their credit issues.
Since this card is a secured one, it means that customers would need to deposit a certain amount beforehand that establishes their credit line. With the increase in their credit, the individuals would be eligible for a promotion to an unsecured credit card. The card has a variable APR of about 27% and charges no annual fees. People can apply for a pre-approval of this card at the company’s website.
The QuicksilverOne Cash Rewards Credit Card produced by Capital One is one of the famous rewards credit cards that is being offered by the company. This card is widely accepted by people that have an acceptable credit score. The card has several features that consist of unlimited 1.5% cashback on all the transactions made by a customer, along with some other perks.
The Cashback features offered by Capital One can be redeemed for cash, or people can also opt to pay for their credit card bill. The variable APR of this card is the same as the other card mentioned above, i.e., 27%. An annual fee 39 dollars is charged from the customers. Despite its features, the card can be applied for pre-approval at the company’s website.
Chase has a variety of credit card offers, including travel rewards cards. And being a customer of this bank has many benefits. One of such perks is the convenience it brings in finding a specialized offer for the card. A customer would only need to log in to their account and scroll down to the link that says “Offers.” By clicking that link, a customer would be able to see a series of offers that would include specialized offers.
However, not being a customer of this bank comes with some hassle and tedious tasks. Such as a person would need to go to some particular trusted website and provide their personal details, and after review, they can see information about pre-qualify offers. The information submitted will give Chase the opportunity to run dawn a soft credit check on that person’s financials which will have no effect on your credit score.
Chase Freedom Unlimited comes with an “Intro Bonus” of 200 USD after a customer has made transactions worth only 500 dollars in a period of 3 months since the account has been opened with Chase. The card also has a hefty list of opportunities that offer cash back to the customer. Hence, this card is recommended with an excellent credit rating by its users since the usage of Chase Freedom Unlimited on everyday transactions on gas, food, and groceries has maximum cashback rewards.
There is no annual fee charged by the bank for this card. Plus, offering a flat competitive rate of 1.5% of cash back makes it one of a kind pre-approval card.
Discover it Cash Back
The Discover it Cash Back card is one of a kind and is mostly preferred by student. The features for this card include no annual fee but there are some minimal fees attached to it. So in case, a person forgets to pay their dues on time, their payment forgiven is approved for the first time to show the good faith that the company represents, but if the fee is paid late again, they have to pay an additional $40 for late payment.
Customers could increase their rewards if they were to time their transactions perfectly on those items that involve a hefty price tag. As a result, they would also get 5% cashback on those purchases along with another 5% if the card was used to pay for food. There is also a1% cashback on all other forms of transactions.
What should a person do if they are getting too many pre-qualify credit card offers?
Choose to get out
A person has the option to opt-out when they feel that they are bombarded with too many emails and notifications from various financial institutions regarding offer towards pre-qualify credit.
The individual has the right to file for an electronic request in which they can choose not to receive email from a specific institution for at least five years. Some people would go for a permanent solution which comprises of filling out a form and ‘unsubscribe’ from receiving emails from a set bank.
In case people choose to carry out the above mentioned process, it would mean that the credit bureaus will not include the name of those individuals on any sheet or list on the time period that they mention when filing the form.
In order to protect oneself from crimes like identity theft, it is imperative that the person should block and delete all such offers and emails that they might have chosen to unsubscribe or put in the spam folder. This is carried out to protect a person from giving away their personal information to scammers.
It is always advised to lock your account with a strong password and change the passcode after every 60 days. This adds to the security and protects you from unwanted crime and theft. Moreover, if you are traveling, then make sure to stop your mail because you will not be able to check your email while traveling. Hence such security measures should be taken.
Impact of Pre-Approved Credit Cards on Credit Scores
Credit check us usually just a soft inquiry so it will not affect the pre-qualification and pre-approval offers. It will also not affect your credit scores. In terms of the hard inquiry, mortgages and auto loans may affect your credit score unlike the soft inquiry. In cases that it does affect your credit score, it’s often a small effect that only lasts for a few months.
Also, bear in mind that if you’re looking for a car or a house, models of credit scoring will evaluate any hard queries made within a 14-day period as if they were one (some models accept up to 45 days). So, providing you market your debts within a short amount of time, your credit will be minimally harmed, if at all.
Frequently Asked Questions
How can I obtain credit card offers that have been pre-approved?
Most people are used to receiving pre-approved credit card offers in the mail, but we’ve compiled a list of ways for you to verify what offers you’ve been pre-approved for from specific card issuers ahead of time. CardMatch is a good place to start if you’re looking for many pre-approved credit card offers from different lenders.
What does a Pre-approval for a credit card entail?
Pre-approval implies that the credit card company thinks you’ll be accepted, but it’s not a guarantee. You’ll still need to fill out an application, and the credit card company will do a “hard pull” on your credit record. The credit card issuer will make the ultimate decision on whether or not you qualify for the card after checking your credit score and report, as well as evaluating your income and spending.
How to acquire credit card offers that are pre-approved or pre-qualified?
Preapproval necessitates meticulous paperwork. A pre-qualification, on the other hand, does not. For pre-qualification, a lender will accept your word for it. However, in order to get pre-approved, you must demonstrate that your financial information is accurate and up-to-date.
How do banks pre-screen the pre-approved credit cards?
Most banks do not carry out a hard pull on your credit without your permission and consent. Most credit card issuers will carry out a soft check on your credit to know about your credit situation without any formal inquiry. The soft check will help the issuers pinpoint the type of offers they can make you.
Do credit cards with pre-approval affect your credit score in an adverse way?
No. Since the majority of pre-approved credit card offers are based on a soft pull strategy of the credit score of an individual, so there is no impact on the credit rating. The credit is affected in a negative way only when the issuer conducts a hard pull on your credit, such as when filling out a credit application.
Can a person get a rejection for a pre-qualify card offer?
Yes. Credit cards that offer pre-approval offers never come with a guarantee that you will qualify for the card. In recent times, if your credit report has changed due to a certain reason that has brought down your credit score, then there is a high probability of being denied the card. As a result, the card issuers prefer to conduct a hard pull on your credit to determine your financial standing to get a better picture of the offers that can be made to you.
Do financial institutions offer cards with no annual fee?
Yes. There are banks that do offer credit cards has no annual charges. Many banks have various credit cards. Some of them have an annual fee, while some do not charge any such fee. Those same cards have APR and a Variable of 0%. CardMatch makes it simple to search for pre-approved credit card that has no annual charges and fees.
Can students apply for pre-approved credit cards?
Yes, they can. There are specific pre-approved cards that are entirely for students. The most preferred pre-approved credit card for students would be Discover. However, there are several other pre-qualified credit card offers for students, like travel reward cards. But for these cards, a fair credit score is needed, which will be hard to maintain for most students.
Pre-approvals for credit cards are considered as a guaranteed sign since they identify that a person has been the basic criteria to qualify for a credit card at their company or business. This also means that their credit history is fair or that they have a stable well paying job to cover the expenses.
It is advised by several experts to view the offers from several banks that are offering pre-approval cards and measure the benefits against the drawbacks. Hence, people should take their time when exploring credit cards and select the one that best fits their own requirements. So the cards that offer the most rewards and benefits should be opted for.
Searching for pre-qualified offers has a lot of value, whether you’re seeking the finest targeted deals or just want a better sense of which cards you’re likely to be approved for. Therefore, when you are considering having a new credit card, you should always visit pre-qualification credit card tools such as CardMatch, as they will point out which card should be targeted according to the preference and requirements of the user.
Lastly, once you have decided to go with a specific card, it is always wise to unsubscribe from all the other cards or companies that might still be spamming your email with the information. To do so, people can either choose to temporarily block getting emails from such financial institutions, or they can go for a more stiff approach that involves permanently removing the names, information, emails, mailing address, etc., of the senders. This would involve filling out a form and specifying dates when they want it to become official so that the credit bureaus would not include their name in the list.