I'm familiar with the method since I applied for the Apple card myself and was approved. It seems very useful for the consumer to gauge the outcome of an application but it also makes it easier to "game the system". If people try these preapproval or prequalification links very often and get a lot of soft pulls on their account, their score won't change but the point of FICO scoring is to reduce when you request new credit. I agree that it would be cool if that could roll out to every issuer but I understand why it doesn't since that type of application doesn't affect your score like it should. Theoretically, whenever you ask for new credit, whether you are accepted or not, your score should change (even if it's a denial).
But seeing potential credit limit and interest rates for the apple card if I just agree to accept it and give them permission to do a hard pull is pretty tempting.
@Mones wrote:I'm familiar with the method since I applied for the Apple card myself and was approved. It seems very useful for the consumer to gauge the outcome of an application but it also makes it easier to "game the system". If people try these preapproval or prequalification links very often and get a lot of soft pulls on their account, their score won't change but the point of FICO scoring is to reduce when you request new credit. I agree that it would be cool if that could roll out to every issuer but I understand why it doesn't since that type of application doesn't affect your score like it should. Theoretically, whenever you ask for new credit, whether you are accepted or not, your score should change (even if it's a denial).
But seeing potential credit limit and interest rates for the apple card if I just agree to accept it and give them permission to do a hard pull is pretty tempting.
HPs don't always lead to score reductions, nor should they. The score losses are more associated with the new account being reported, the loss of AAoA, and the resetting of AoYA.
Good question! I found the process refreshing.. just to 'know'. Otherwise it's a stressful game, and you pay the price for playing (if denied). Wish more companies would do it this way.
@FinStar wrote:
@bergmi wrote:I am also a fan of this process. Nothing more frustrating when you get pre-approval offer in the mail (or by other means), you then apply and then are rejected. I may or may not have experienced this! ;-)
Chase, are you listening?
@bergmi Chase already does this with several of their green star ribbon pre-approved offers for targeted customers. With such offers, it will explicitly state "You're approved" followed by the limit and APR. So, Chase is already onboard on some targeted offers. If you look around the forums, you'll find countless examples.
Appreciate your input... Yeah, I've seen those posts (I'm a power-lurker!), but I've never seen the offers in my Chase app. I do have a nearly 2 year old Freedom card with a $500 limit that hasn't grown in that time (denial, recon to get it, no luck on 2 separate CLI requests). They simply don't like my profile, which I think is pretty good - scores in the upper 700's, but heavy with hard inquiries and lots of new loans (vehicles, PLUS, mortgage refi) - only baddies are two late payments in 2016. It is a bit frustrating and what is it about wanting the things you cannot have!?! I'll stop whining now... :-)
"Is there any way to know what the impact would be" @Learning_Tee0225
Impact would be a Hard INQ to Transunion (point drop for new INQ),
or at least that's what it was for me. Hope it helps!
