topic Re: credit pre-approvals; what's the difference? in General Credit Topics

credit pre-approvals; what's the difference?

ktl55 — Mon, 28 May 2007 03:09:11 GMT

I keep reading that people are getting slammed with credit card pre-approvals once their credit scores got better. Well, when my credit was at it's worse I was still getting them. Not a lot but they did come. I got the Chase (it was initially BNY until Chase took over) card when my credit was at it's worse (although I really think I got this card by accident if there is such a thing). So, what is the difference between the pre-approvals I got then to the ones I may get now that my CR/CS is much cleaner?

Re: credit pre-approvals; what's the difference?

Anonymous — Mon, 28 May 2007 04:34:26 GMT

Pre-Approvals are generally just ads to catch your attention. It caught on as more people responded to these types of sales ads. If they said, Please sign up. People toss them out. But Pre-approved.. People are tricked in to thinking they are excepted. My pet got a pre-approval many times from Cap1 card. I used my pets name on a web site some time ago and they sold out the name and address. hehe. It is possible that there are still reall pre-approvals out there. I think American Express sends out real ones. But who knows.

Re: credit pre-approvals; what's the difference?

Anonymous — Mon, 28 May 2007 04:38:49 GMT

The CRAs also sell out your information. People that gain points probably are more likely to have fewer cards, therefore wanted by banks. Fewer cards, more likely to use what they get. These people also want the cards. So it is a good relationship. It is not perfect. Once you are on a mailing list you stay on it. Even if you declare bankruptcy, you will still get pre-approvals. Just that your information is not being sold so it slows down. When you start carrying large balances, your info is sold to Cap1 and Wamu who charge higher interest rates. The ones controlling it are mostly the CRAs. These are the soft pulls for "PRMs".

Re: credit pre-approvals; what's the difference?

Anonymous — Mon, 28 May 2007 04:41:03 GMT

pre-app and pre-qual, same thing different wording.

Re: credit pre-approvals; what's the difference?

Tuscani — Mon, 28 May 2007 13:10:04 GMT

I think mortgages are the exception..

To pre-qualify means only income and monthly obligations (debts) are considered without verification of that information or the review of their credit history. A seller will be less inclined to accept since there is no guarantee that this offer can secure adequate funding.

A pre-approved buyer has completed a application, documented their financial situation and reviewed their credit report. They have a commitment letter from their lender stating that they are pre-approved for a mortgage up to a certain amount based on the property appraising at the asking price or higher.