Financing

Credit cards offering pre-approval

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Only about 40% of applicants on average are approved for credit cards, according to one 2019 Consumer Financial Protection Bureau Report. This means that a majority of people walk away with their credit report fully investigated and no new cards to show for it.

This is why it is wise to look for cards that offer pre-approval or pre-qualification with only soft credit. A pre-approval does not guarantee that you will be approved, but at least you will know that you have a good chance if you decide to apply. And if your pre-approval is denied, you can have peace of mind knowing that there has been no negative effect on your credit report.

Here’s how credit card pre-approval works and how you can find pre-approval offers for yourself.

What is pre-approval?

Credit card pre-approval is a way for credit card companies to pre-screen consumers to determine if they are a good fit for a credit card based on their credit score. The benefit for consumers is that they can buy credit card deals without risking damaging their credit score with a serious credit investigation.

New credit applications make up 10% of your credit score, so it’s wise to limit the number of new credit applications you submit. However, being pre-approved does not mean that you are guaranteed to be eligible for the card.

“If you’re actually applying for the card, you’ll still have to go through a serious credit check – you haven’t actually bypassed any part of the actual approval process,” explains Jason visser, credit and financial analyst at Merchant Maverick, a financial products review site. “Since your prequalification means you meet minimum credit score requirements, pre-approval isn’t completely meaningless – it just doesn’t mean as much as you might think.

How to get pre-approved

Many credit card issuers offer pre-approval for specific cards in their collection, typically for those looking to create or replenish credit. Visiting the issuer’s official website is usually a good place to start, but here are some more tips for getting a card pre-approved:

Know what to expect. Typically, pre-approval forms will ask for basic information such as your name, date of birth, and address. They will also ask you for the last four digits of your social security number for soft credit that won’t impact your credit score. Some credit card issuers may ask for your full Social Security number. This doesn’t necessarily mean that they are going to take a big hit on your credit, but read the form carefully to be sure.

Use a comparison site to buy multiple offers. There are credit card comparison sites that allow you to enter your information and see a list of cards that you can get pre-approved for. The advantage of this strategy is that you can be pre-approved for multiple cards and you can compare offers to find the one that works best for you.

Go directly to the website of the issuer. The benefit of looking for pre-approvals directly from the source is that you have more control over which cards you are pre-approved for, rather than being offered those that have a relationship to the card comparison site. . This strategy is advantageous if you want a particular credit card.

Wait for them to come to you. It doesn’t happen as often these days, but credit card issuers can send direct mail to consumers with pre-approval offers to entice them to apply for their cards. Just be careful before taking advantage of these offers and read the fine print. Some are just marketing gimmicks. If this is a legitimate offer, however, it might be better than what you find yourself browsing online.

“The credit card offer you get with the pre-approval notice may very well give you better interest rates and / or better introductory rates and rewards than you would otherwise get if you had. simply applied for the card without first receiving that credit card offer, ”Vissers said.

For example, a credit card might offer a sign-up bonus of 200,000 points with its direct mail pre-approval offer, but only 100,000 for those who sign up on the company’s website. Likewise, a card may offer an 18-month introductory period on its direct mail offer, but only 12 months when you sign up online.

Cards offering pre-approval

Capital One Secure Mastercard®

The Capital One Secure Mastercard is ideal for those without a credit history or who are rebuilding their credit. Because it is a secured card, borrowers deposit a certain amount in advance, which then becomes their line of credit. As their credit improves, they can request an increase in their credit limit or get an upgrade to an unsecured card.

The Capital One Secure Mastercard has no annual fee and a variable APR of 26.99%. You can get pre-approval directly on Capital One website.

Capital One Platinum Credit Card

The Capital One Platinum credit card is designed for borrowers with fair credit. This card is a cut above a secure card, as the approval requirements are low, but it does not require a deposit. However, it also doesn’t come with any sign-up bonuses or rewards.

The Capital One Platinum credit card has a variable interest rate of 26.99% and no annual fee. You can get pre-approval directly on Capital One website.

Visa® Petal 2 “Cash Back, No Fee” credit card

The Petal 2 Visa credit card is designed to help you build your credit. You can qualify with no credit history and be eligible for a credit limit between $ 500 and $ 10,000. Unlike many introductory credit cards, the Petal 2 comes with cash back of between 1% and 1.5% at some merchants.

The Petal 2 credit card has APRs ranging from 12.99% to 26.99%, depending on your creditworthiness. There is no annual fee for this card. You can get pre-approval directly on The Petal site.

Capital One QuicksilverOne Cash Rewards Credit Card

Capital One QuicksilverOne Cash Rewards Credit Card is a popular rewards credit card for fair credit borrowers. It comes with unlimited 1.5% cash back on all purchases, along with other perks. Your cash back can be used to redeem for cash, cover purchases with your credit card, or be redeemed for gift cards.

The Capital One QuicksilverOne card comes with a variable APR of 26.99%. There is also an annual fee of $ 39. You can get pre-approval directly on Capital One website.

  • Introductory bonus:

    No current offer

  • Annual subscription :

    $ 0

  • Regular APR:

    26.99% (variable)

  • Recommended credit:

    (No credit history)

  • Learn more external link icon on the secure site of our partner.
  • Introductory bonus:

    No current offer

  • Annual subscription :

    $ 0

  • Regular APR:

    12.99% – 26.99% (Variable)

  • Recommended credit:

    (No credit history)

  • Learn more external link icon on the secure site of our partner.
  • Introductory bonus:

    No current offer

  • Annual subscription :

    $ 0

  • Regular APR:

    26.99% (variable)

  • Recommended credit:

    (No credit history)

  • Learn more external link icon on the secure site of our partner.

Which card is right for you?

Just because you’re pre-approved doesn’t mean a card is the best fit for your needs.

“Before you apply for a card or even request pre-approval, you need to decide what you really need,” explains Beverly harzog, credit card expert and consumer credit analyst at US News & World Report. “I don’t recommend you spread out and try to pre-qualify for four different cards at once.”

Pro tip

Credit card pre-approval helps reduce the risk of being denied a credit card by matching you with offers you qualify for based on your credit score. Getting pre-approved before you apply can help reduce the risk of unnecessary inquiries on your credit report.

You have a clear idea of ​​what you need for a card: is a login bonus or cash back important to you? Or are you looking for a secure card to help you build your credit?

And, since different rewards cards often have different reward categories, “make sure you match a rewards card with how you actually spend money,” says Harzog.

You can use credit card pre-approvals to filter out cards you won’t be eligible for based on your credit score. This helps reduce the risk of applying for a card for which you may be refused. But it’s also important to do your own homework. Check the card issuer’s credit score requirements to make sure you meet them. Check your credit report to make sure there are no mistakes or derogatory marks that could cause a card issuer to deny your request.

Once you’ve identified the pre-approval offers for the cards you’re sure you’ll be accepted for, you can compare terms like interest rate, credit limit, and rewards. This way, when you officially apply for a new card, you can rest assured that you have done the necessary work to find the right card for you.


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