A fresh credit card application can raise some questions. Will you be given the go-ahead? Will the APR be sufficiently low? What is going to be your financial limit? Issuers perform complicated queries against the credit report(s) in addition to the unknowns when determining your creditworthiness. A large portion of the uncertainty can be avoided by pre-applying for a credit card. Card issuers typically offer pre-approval or pre-qualification services, allowing potential cardholders to determine if they will be approved before submitting an official application.
Customers can compare options and submit multiple preapproval applications as they like. Preapprovals typically don't damage credit because issuers use mild credit checks to assess eligibility.
Receiving preapproval for a card only ensures that the card issuer will approve it in full and on the terms you requested. This being said, if you file an official application during the preapproval time, you'll typically have a good chance of acquiring what you're looking for.
'Preapproval-offering Issuers of Credit Cards
Preapproval is available for at least part of the cards most major American card issuers offer. Various pieces of information, ranging from the applicant's name and email to their income and housing situation, are needed by each issuer. In our lists below, you can find cards from several issuers:
Chase
● Citi
● Capital One
● Discover
● American Express
● American Bank
'Chase:
You'll need to give Chase your full name, address, and Security number's last four digits in order to begin the pre-qualification process.
Citi:
You must submit your full name, address, Security number, last four digits, and the type of card you're interested in for Citi pre-qualification.
Capital One:
For Capital One to start the pre-qualification process, you must provide your entire name, address, date of birth, total Security number, and the type of card you desire.
Discover:
To investigate Discover pre-qualification, you must provide your full name, address, birth date, full Social Security number, student status, bank account information, housing situation, income, and the card type you choose.
American Express:
To start using American Express, you must provide your full name, address, Social Security number's last four numbers, and details about your earning. Some cards could additionally include a "apply with confidence" option.
Bank of America:
The following information is necessary for Bank of America pre-qualification: your complete name, date of birth, last four numbers of the Social Security number, address, and the card type you're interested in.
Preapproval: What Is It?
The term "preapproval" denotes that a credit card issuer has performed a quick credit check to see whether you qualify for a credit card based on your credit history. Hard credit checks, which record information about your credit history and could slightly lower your score, impact your credit, whereas soft credit checks have no such impact. The credit card provider will almost certainly run a thorough credit check when you formally apply for a credit card before making a decision.
There are only sometimes preapproval deals available, and they sometimes expire.
Comparison of Credit Card Prequalification with Pre-approval
Preapproval and prequalification can occasionally be used interchangeably by card issuers. Both imply that an issuer assesses your financial and personal data to decide if you qualify for a credit card offer.
A pre-approval could be taken further by conducting a quick credit assessment and looking at financial data such as annual earnings and bill amounts.
A prequalification or preapproval that is applicant-specific lists potential rates, limitations, and card features. Pre qualifications or preapprovals—the issuer may use either term—do not represent a commitment to make a final proposal. The proposal is not guaranteed unless otherwise clearly stated by the issuer.
Pre-Qualified Credit Cards: Advantages and Disadvantages
Advantages and Disadvantages of Pre-Qualified Credit Cards are following
Advantages:
The quickest and least damaging way to learn which credit cards you might be qualified for is to apply for preapproval on the card issuer's website. Preapproval or prequalification can offer support, which is a significant advantage. You can use it to compare card providers without jeopardizing your credit score. Occasionally, You may impact credit card companies on your upcoming APR and credit limit.
Prequalification and preapproval offer also provide incentives to earn bigger welcome bonuses and other benefits.
Disadvantages:
Pre-approval and pre-qualification have a few disadvantages. You must complete a lot of documentation to apply for cards, even if it may be tiresome and time-consuming.
What is the process for obtaining pre-approval for a credit card?
The first step to obtaining preapproved is to visit the preapproval tool on the card issuer's website and provide the necessary information. It's best to be ready because different issuers could request different information. Have Social Security number, annual earnings, schedule of payments for bills due each month, and housing situation readily available.
Visit the preapproval tool on the card issuer's website and provide the required information to get pre-approved for a credit card. It's best to be prepared because various issuers might request different information. Have your Social Security number, annual income, a list of the monthly bill payments due, and information about your housing condition.
Conclusion
One simple way to find out which cards you might be qualified for is to apply for preapproval on the website of the card issuer. With preapproval or prequalification, you can compare card issuers without affecting your credit score. The card issuer may occasionally disclose your possible borrowing capacity and APR. Preapproval proposals are not legally binding, so remember it. The card issuer can only accept your official application if you attend the preapproval date or if your financial condition changes.
