topic Re: Credit Card Pre-Approval Letters/Promotions in Credit Cards

Credit Card Pre-Approval Letters/Promotions

Girlzilla88 — Tue, 08 Oct 2019 17:48:48 GMT

So I see people here all the time I got the 'you're preapproved' or you're good to go offers and so they go for it and end up with great SL etc my question is is that just run of the mill you're preapproved just so you will try and we will see where you stand or are they you are now eligible/preapproved for this card go ahead and see what your limit is?! And if they are different how do you know the difference are they worded differently?! I keep getting Capital One mail to my house (don't worry I'm not touching my garden haha) but I dont' believe I have any connection with them other than my old car loan was through them so it may be legit but it may be shoot your shot and see if yay or nay?! Please help.

Re: Credit Card Pre-Approval Letters/Promotions

Girlzilla88 — Tue, 08 Oct 2019 17:49:38 GMT

If this goes in the Credit Card general part please move I wasn't sure where to put it since I have a 'pre-approval' and my questions are on those?!

Re: Credit Card Pre-Approval Letters/Promotions

M_Smart007 — Tue, 08 Oct 2019 18:16:13 GMT

@Girlzilla88 wrote:
So I see people here all the time I got the 'you're preapproved' or you're good to go offers and so they go for it and end up with great SL etc my question is is that just run of the mill you're preapproved just so you will try and we will see where you stand or are they you are now eligible/preapproved for this card go ahead and see what your limit is?! And if they are different how do you know the difference are they worded differently?! I keep getting Capital One mail to my house (don't worry I'm not touching my garden haha) but I dont' believe I have any connection with them other than my old car loan was through them so it may be legit but it may be shoot your shot and see if yay or nay?! Please help.

@FinStar.probably has the best explanation on mail pre-qualify/pre approval.

Re: Credit Card Pre-Approval Letters/Promotions

FinStar — Tue, 08 Oct 2019 18:58:29 GMT

Any type of offer usually has specific pre-screened criteria depending on the lender and product. Typically, the most solid offers are those that have the "pre-approved" or "pre-qualified" language (AmEx, Capital One, Chase, BB&T come to mind, for instance). That said, they are not 100% guaranteed (still subject to credit approval) since a disclosure/fine print is usually provided when the offer is submitted online or via the accompanying mailer. When a solid offer is referenced it's usually based on the premise that nothing major has changed with an overall credit profile when the initial pre-screening occurred.

Of noteworthy, a variety of lenders interchangeably use pre-approved or pre-qualified as a condition that you've met most of the criteria for an approval. By the same token, similar targeted offers can be used to entice interest in a product, such as "invited to apply", "recommended for you" or "pre-selected" which do not have the same pre-screening criteria and are more marketing solicitations than anything, even if they have a reservation code, set APR, and/or contain the pre-screening opt-out language.

Re: Credit Card Pre-Approval Letters/Promotions

Girlzilla88 — Tue, 08 Oct 2019 19:00:10 GMT

Ok I think that helps thank you.

Re: Credit Card Pre-Approval Letters/Promotions

Anonymous — Tue, 08 Oct 2019 19:18:48 GMT

It's all marketing based off lists they buy for prospective new customers based on creiteria and the source isn't always a CRA that has the Pre-Screened offers opt-out language on them because the source wasn't from a CRA.

It's all marketing but, some indicators would be a specific 1x.x% APR or a 3-4% APR spread vs 13.xx%-30.xx% you would normally see.

Other than that it's a roll of the dice normally even with the "firm" offer. Research is key to narrowing the odds by comparing approved profiles with your own if you can narrow them down to the same state it's even better.

Re: Credit Card Pre-Approval Letters/Promotions

Montana-Hats-702 — Wed, 09 Oct 2019 02:39:38 GMT

Since you're specifically referencing Cap1, I'd say one easy way to determine if it's truly prescreened, approval leaning "offers" is to use their online pre-qualify tool. It's regarded as pretty reliable indicator of whether or not you'd be approved. I've never had a reject from them when that tool said I was preapproved.

Re: Credit Card Pre-Approval Letters/Promotions

JNA1 — Wed, 09 Oct 2019 03:33:16 GMT

Is there any rhyme or reason why (or why not) you wouldn’t get offers? I never get them. My wife gets them a lot, and she has much more limited credit than myself. I’ve never had bad credit (no derogatory marks, bankruptcies, repossessions, and no late payments in 10+ years).

The only thing I did “wrong” was that I went for over 10 years with nothing but my Mortgage on my report. I paid cash for everything, so I’m kinda playing catch up now.

Re: Credit Card Pre-Approval Letters/Promotions

Girlzilla88 — Thu, 10 Oct 2019 16:31:03 GMT

I think typically you see more offers Pop Up when you use them or you seek credit recently it is kind of like a Beacon that goes off and alerts them all to SWAMP you hahaha. Or at least that's what happened in my case. The only difference being the Cap 1 I've never tried to get a CC with them only had the Car with them but when I refinanced it I no longer had Cap 1 and I think now they are like....WAIT COME BACK! LOL

Re: Credit Card Pre-Approval Letters/Promotions

Girlzilla88 — Thu, 10 Oct 2019 16:32:19 GMT

@Jkrause702 so you can do this even without having any sort of Credit account with them already?! Or would I need to open a login and everything with them to see later?!

Re: Credit Card Pre-Approval Letters/Promotions

Anonymous — Thu, 10 Oct 2019 17:39:08 GMT

@JNA1 wrote:
Is there any rhyme or reason why (or why not) you wouldn’t get offers? I never get them. My wife gets them a lot, and she has much more limited credit than myself. I’ve never had bad credit (no derogatory marks, bankruptcies, repossessions, and no late payments in 10+ years).

The only thing I did “wrong” was that I went for over 10 years with nothing but my Mortgage on my report. I paid cash for everything, so I’m kinda playing catch up now.

1 big thing is if you OPT-OUT

2nd if you have a lot of activity trying to build your profile you won't get as many offers

I find I get offers for all sorts of stuff if I leave a balance lingering somewhere for more than a statement. They seem to think using 5K our of 500K is an indicator I need to BT / PL to consolidate debt. BT checks flood my mailbox weekly even through I tell all of my cards not to mail me stuff w/ electronic statements and opt outs.

I went an played with BBVA a little bit because there was a PL pop up on the login screen and they have been e-mailing and calling like crazy just because I clicked it to see what their rates were compared to Amex that has been doing the same monthly.

Re: Credit Card Pre-Approval Letters/Promotions

Montana-Hats-702 — Fri, 11 Oct 2019 03:45:08 GMT

Yes you can check preapprovals with cap1 and others without having an existing account with them.

Re: Credit Card Pre-Approval Letters/Promotions

CountryLad — Fri, 11 Oct 2019 04:28:31 GMT

@FinStar wrote: Any type of offer usually has specific pre-screened criteria depending on the lender and product. Typically, the most solid offers are those that have the "pre-approved" or "pre-qualified" language (AmEx, Capital One, Chase, BB&T come to mind, for instance). That said, they are not 100% guaranteed (still subject to credit approval) since a disclosure/fine print is usually provided when the offer is submitted online or via the accompanying mailer. When a solid offer is referenced it's usually based on the premise that nothing major has changed with an overall credit profile when the initial pre-screening occurred.

Of noteworthy, a variety of lenders interchangeably use pre-approved or pre-qualified as a condition that you've met most of the criteria for an approval. By the same token, similar targeted offers can be used to entice interest in a product, such as "invited to apply", "recommended for you" or "pre-selected" which do not have the same pre-screening criteria and are more marketing solicitations than anything, even if they have a reservation code, set APR, and/or contain the pre-screening opt-out language.

Well said, FinStar. Another thing to note is that whenever you receive a solicitation that says "pre-qualified." pre-selected," or "pre-approved" those solicitations are ones that the lender has actually taken a peek into your credit file(s). After they peek at your credit, by law, the lender then has 45 days to make you the offer (or send you the application, etc.) Those letters, by law, also must contain the "Opt out of credit offers" language and phone number on them. If you ever look at your credit report and it lists creditors that have looked at your credit -- but no impact on your score (aka: soft pulls) this is where they show up. If your solicitation says "you're invited to apply" this means the creditor has not peeked at your credit and they have acquired your name/info from another source, not the CRAs -- maybe a 3rd party they do business with, etc. These types of offers are not under law to send you the solicitation. Hope this helps.

Re: Credit Card Pre-Approval Letters/Promotions

Girlzilla88 — Fri, 11 Oct 2019 14:07:39 GMT

Interesting Ty <3

Re: Credit Card Pre-Approval Letters/Promotions

KJinNC — Fri, 11 Oct 2019 18:08:26 GMT

I see people use the terms "prequalified" and "preapproved" interchangeably. They are not synonyms, though they may APPEAR to be for many people (explanation follows).

This can vary by lender, but generally, "prequalified" means that you fit their marketing profile of people they'd expect to want the card, in terms of income, spend, or some other pattern that reaches their marketing department. Generally, "preapproved" means they soft-pulled your credit, and based on that, they are pretty sure you'd qualify for the card (but no guarantee).

The effect is similar for your average person, because if you have (say) a spend pattern that Amex thinks makes sense for the Platinum Card, you most likely will also have the credit score, income and other factors that would lead to approval for the Platinum Card; but if you differ in some way, as many of us on this board do (rapidly building credit or otherwise seeing a lot of changes to our credit profiles), prequalifications are likely to be meaningless for you.