Does preapproved really mean preapproved?

[gagirl82]

Hi everyone,

I recieved a Fingerhut book in the mail with a $400 preapproval notice on it.  Does preapproved really mean preapproved? I dont want to apply if I stand the chance of getting denied.  I am still interested in opening another tl to help increase my scores.  Does anyone know if Fingerhut reports to all three credit agencies? Also, does a preapproval offer result in a hard pull once you apply?

[policebox]

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@gagirl82 wrote:

Hi everyone,

I recieved a Fingerhut book in the mail with a $400 preapproval notice on it.  Does preapproved really mean preapproved?

It means at the time they looked at your credit, you met the criteria. Since your credit changes on a daily basis, if there have been any major changes that affected your score between the time they looked at your credit and the time you apply, then it's possible your application could be denied.

I dont want to apply if I stand the chance of getting denied.  I am still interested in opening another tl to help increase my scores.  Does anyone know if Fingerhut reports to all three credit agencies?

Yes, they report to all three credit agencies as Webbank/Fingerhut.

Also, does a preapproval offer result in a hard pull once you apply?

It may or it may not. Always expect there to be a hard pull, never count on it being soft.

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[gagirl82]

Thank you so much for answering!

[Whitneyy]

Fingerhut is good whether it pulls hard or not in my opinon because it turns into a revolving tradeline if taken care of. 

[gagirl82]

For anyone who may be interested I went ahead and applied online. I got a pending message but when I called the number the rep said I was approved for $300! I will take it! Anything to help build. Thanks for your input everyone.

[Whitneyy]

Thats good! Are you apart of the freshstart program?

[RobertEG]

It depends upon whether the creditor sent the offer based on having obtained your name from a CRA in response to a promitional inquiry.

Creditors can send offers to anyone, and what "pre-approval" means depends upon the terms stated in their offer.

However, many creditors dont want to waste time and effort in sending out thousands of offers to consumers who will clearly not meet their basis criteria.

They are permitted to submit criteria to the CRA, and obtain benefit of the CRA screeing of their credit files, and identification of only those consumers who meet the stated critria.

If a credtior takes advantage of that pre-screenig process by a CRA to obtain a listing of consumers, they are then required to make a "firm offer for credit" to all on that listing, and if the consuer then applies as is found, upon a full review of their current credit report, to meet those criteria, they must honor the firm offer.

.

They are required, in their offer, to notify you if their offer is being made as a result of having obtained your name from a listing provided tby the CRA.

Such an offer thus does have specific meaning.

If you bite on the offer, you then have initiated a request for credit, and they are entitled to pull your entire credit report, and code that inquiry as hard.

Whether code as sott is entirrely at their discretion.

[gagirl82]

Hi Whitneyy,

No I am not apart of the freshstart program.  Its just the regular Fingerhut credit program.

[gagirl82]

Thank you for the detail information RobertEG! That is very helpful to know going forward.