topic Re: Capital One's pre-qualification tool - any predictive value? in Credit Cards

Capital One's pre-qualification tool - any predictive value?

Lel — Tue, 05 Jan 2010 22:33:50 GMT

There recently was a thread that discussed an instantaneous "not qualified" result for another FICO forums member.

I was also thinking about applying for a Cap One card for the same reason - no foreign transaction fee. I have some international travel planned over the next year. I tried out the pre-qualification tool, which requires only your name, address, last 4, a card preference, and a personal assessment of one's credit profile (for which they provide general parameters). As has been noted in the other thread, this does not result in a credit inquiry.

So I gave it a shot. It came back with a result that while there are no pre-approved offers for me, I still pre-qualify for one of their cards.

My questions are: has anyone else used this tool and gotten a similar result? If yes, and if you actually went through with the application, did you ultimately get a card, or were you denied after Cap One actually looked at your credit profile?

I'm just trying to get a sense of the value of this tool. My gut feeling is that it is not a very good predictor of application success.

I'm mostly curious. I don't relish the idea of having 3 hard inquiries in order to get this card. I already have a Macy's Visa, whose foreign transaction fee is 1%. But as DW says, 0% is better.

Re: Capital One's pre-qualification tool - any predictive value?

DI — Tue, 05 Jan 2010 22:47:30 GMT

@Lel wrote:
There recently was a thread that discussed an instantaneous "not qualified" result for another FICO forums member.

I was also thinking about applying for a Cap One card for the same reason - no foreign transaction fee. I have some international travel planned over the next year. I tried out the pre-qualification tool, which requires only your name, address, last 4, a card preference, and a personal assessment of one's credit profile (for which they provide general parameters). As has been noted in the other thread, this does not result in a credit inquiry.

So I gave it a shot. It came back with a result that while there are no pre-approved offers for me, I still pre-qualify for one of their cards.

My questions are: has anyone else used this tool and gotten a similar result? If yes, and if you actually went through with the application, did you ultimately get a card, or were you denied after Cap One actually looked at your credit profile?

I'm just trying to get a sense of the value of this tool. My gut feeling is that it is not a very good predictor of application success.

I'm mostly curious. I don't relish the idea of having 3 hard inquiries in order to get this card. I already have a Macy's Visa, whose foreign transaction fee is 1%. But as DW says, 0% is better.

Yes, and that message is standard to anyone who isn't on their pre-approval radar. I get the same message each time I check. I never went through with the application since I already have a 10 Y.O. no builder card with them.

Message Edited by DI on 01-05-2010 04:47 PM

Re: Capital One's pre-qualification tool - any predictive value?

Lel — Wed, 06 Jan 2010 00:10:59 GMT

I also wonder if using that pre-qualification tool might lead to a soft promotional inquiry by Cap One - they might have enough information to do so, based on what I entered - which may then lead to a mailed preapproval. But I opted out, so maybe I wouldn't get a pre-approval letter even if they did that. Of course, they could just determine that I'm unapprovable anyways!

Re: Capital One's pre-qualification tool - any predictive value?

Anonymous — Wed, 06 Jan 2010 01:03:16 GMT

I got that message but didn't go thru with it too scared to get denied. I was told by other members they pull all 3 CR. I'm still working on improving my EX and from past experience (applied back in Oct 08) I want to wait before I do apply again. I can't afford another inquiry right now. I have opted out of pre-approvals but if that's the case why is it that I am pre-approved for Orchard & HSBC? They have a pre-approval site.

Re: Capital One's pre-qualification tool - any predictive value?

DI — Wed, 06 Jan 2010 01:54:00 GMT

@Lel wrote:
I also wonder if using that pre-qualification tool might lead to a soft promotional inquiry by Cap One - they might have enough information to do so, based on what I entered - which may then lead to a mailed preapproval. But I opted out, so maybe I wouldn't get a pre-approval letter even if they did that. Of course, they could just determine that I'm unapprovable anyways!

You just made me think about something. I have checked the pre-approval numerous times last year. I now know why I have all those soft inquiries from Cap 1 on credit reports that lead to no CLI.

Re: Capital One's pre-qualification tool - any predictive value?

haulingthescoreup — Wed, 06 Jan 2010 01:58:54 GMT

Lel wrote:
I also wonder if using that pre-qualification tool might lead to a soft promotional inquiry by Cap One - they might have enough information to do so, based on what I entered - which may then lead to a mailed preapproval. But I opted out, so maybe I wouldn't get a pre-approval letter even if they did that. Of course, they could just determine that I'm unapprovable anyways!

If you've opted out, that might well be why there were no pre-approval offers for you. I'm pretty sure that you have to be opted in for this. I know that the BofA site, for instance, will come up with zip if you're opted out. (And it takes a while after you opt back in for it to actually happen --up to six weeks, in some instances.)

Re: Capital One's pre-qualification tool - any predictive value?

Lel — Wed, 06 Jan 2010 19:04:18 GMT

haulingthescoreup wrote:
Lel wrote:
I also wonder if using that pre-qualification tool might lead to a soft promotional inquiry by Cap One - they might have enough information to do so, based on what I entered - which may then lead to a mailed preapproval. But I opted out, so maybe I wouldn't get a pre-approval letter even if they did that. Of course, they could just determine that I'm unapprovable anyways!

If you've opted out, that might well be why there were no pre-approval offers for you. I'm pretty sure that you have to be opted in for this. I know that the BofA site, for instance, will come up with zip if you're opted out. (And it takes a while after you opt back in for it to actually happen --up to six weeks, in some instances.)

Yeah, I figured that opting back in wouldn't be instantaneous. There was a long lag before opting out actually took hold. But then again, maybe the CRAs would be eager to sell my info to the CCCs as soon as they get the opt-in notification, and the CCCs might be eager to try to get me to break my 2010 no-new-credit-accounts resolution!

Re: Capital One's pre-qualification tool - any predictive value?

Lel — Wed, 20 Jan 2010 06:27:40 GMT

Interesting. Today I received an invitation from Cap One to apply for their miles card. This was the card that I expressed interest in when I used their pre-qual thingy. It wasn't a pre-approval, just an invitation. Coincidence, perhaps, but I haven't received solicitations from them since before I opted out a while ago.