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Key takeaways
- Prequalified card offers can help you scope out how likely you are to qualify for a credit card, and the issuer typically only does a soft credit inquiry that will not impact your credit score.
- If you improve your credit score by practicing habits, such as paying on time and keeping your card balances low in relation to your total available credit, it’s more likely that you’ll prequalify.
- A variety of major card issuers allow you to check if you’re eligible for prequalified offers on their websites.
Applying for a new credit card can be intimidating. That’s due in no small part to nearly all credit card applications triggering a hard credit inquiry, which temporarily drops your credit score and stays on your credit report for two years. What’s worse, there’s no guarantee of approval, so you could end up hurting your score with no new card to show for it.
The good news is that most credit card issuers allow potential cardholders to see if they’ve prequalified for a certain credit card before they apply. Prequalification tends to refer to a less intensive screening that looks at your basic credit history and other personal information. It can help you take a lot of guesswork out of the application process and allow you to get a sense of where you stand before you apply.
However, each issuer handles prequalification a bit differently. Here, we explore how prequalified offers work, how to improve your odds of getting a prequalified offer and how different issuers handle prequalification for their cards.
Prequalification vs. preapproval
The difference between credit card preapproval and credit card prequalification can be tough to pin down, even for credit experts. Not only do card issuers use the terms differently, some even use the two interchangeably.
As a rule of thumb, prequalification is a less intensive — and thus less reliable — determination of your approval odds. Preapproval, on the other hand, typically results from a formal prescreening on the issuer’s side and could signal the highest approval odds an issuer can offer without pulling your credit.
Keep in mind:
Neither process will affect your credit score, nor will they guarantee approval.
Credit card prequalification explained
Typically, prequalification happens when you give a credit card issuer your credit information to check if you’re likely to qualify for a card. To see if you’re prequalified, issuers usually ask for basic personal and financial information like:
- Your income
- Your monthly housing payment
- Social Security number
They will then check your credit via a “soft pull” and let you know whether your credit profile meets their basic qualification criteria. If you’re wondering whether obtaining prequalification makes sense for you, we’ve broken down the general pros and cons to help you decide:
Pros
- Doesn’t affect your credit score
- Gain a better understanding of your approval chances
- Potential for higher welcome bonuses and exclusive offers that aren’t publicly available
- A prescreened preapproval offer signals a firm offer of credit in compliance with the FCRA
Cons
- Doesn’t guarantee approval
- Could feel obligated to take on more credit cards than you can manage
- Hard credit inquiry if you formally apply
Bankrate tip
Some credit card issuers also mail out invitations to apply to consumers who meet their criteria. But unless the mailer is explicitly labeled a “prescreened” offer of credit, this could be little more than marketing material. Check the fine print of any preapproved or prequalified offers you receive for a formal prescreen and opt-out notice to be sure it’s a true prescreened offer.
Credit card preapproval explained
Preapproval often sees issuers partnering with credit bureaus to pull together a list of consumers likely to qualify for a given card — but the data they request is much more detailed. This is costlier for the issuer, but it helps them narrow the list of people to whom it would like to extend credit. It can also mean that you’ll get access to exclusive sign-up bonuses or welcome offers.
From a customer’s point of view, preapproval based on this sort of prescreening is a much stronger signal that your application will be approved if you choose to apply. That’s because the Fair Credit Reporting Act requires that card offers that result from prescreening constitute a firm offer of credit. So, while you’ll notice many of the same advantages as prequalification, you may have slightly higher approval odds if you receive a preapproval.
3 ways to see if you prequalify for a credit card
You can typically find out if you prequalify for a credit card when you:
- Check your mail for prescreened offers. Prescreened offers show up in both your email inbox and your actual mailbox because lenders are working to identify consumers who qualify for certain credit products. If you choose to apply for a credit card offer after receiving a prescreened offer in the mail, you’re likely to get approved — however, it is not guaranteed.
- See if you are prequalified through third-party sources. A few third-party sources offer online tools for consumers to check to see whether they prequalify for any offers from the site’s partners. Once again, there is no guarantee you will be approved once you formally apply.
- Contact the issuer directly. If you already have an idea of what issuer you want a card from, go directly to the source. Many of the mainstream credit card issuers offer prequalification tools on their sites.
Prequalified credit card offers by issuer
Each issuer approaches prequalification in its own way, with some giving applicants an easy way to check for prequalified offers across cards and others only featuring this option on select cards or via prescreened offers they put together themselves.
Prequalification tools typically ask for basic information such as your name, Social Security number, income and employment status to determine your eligibility. Here’s a look at how some major issuers handle prequalification:
| Card Issuer | Do they prequalify? | Required information | General or Card-specific? |
|---|---|---|---|
| Wells Fargo | Yes | Name, Address, Last 4 of SSN | Shows which cards you’re prequalified for. |
| Discover | Yes | Name, Address, Date of birth, Student status, Housing payment, Annual gross income, Email address | Provides up to three credit card offers plus your standard APR. You may also have welcome offers. |
| Capital One | Yes | Name, Phone, Email Address, Education level, Employment status, Gross income, Monthly housing payment, SSN, Date of birth | Shows which cards you prequalify for, standard purchase APR and available welcome offers. |
| Chase | Yes | Name, Address, Last 4 of SSN, Gross income | Shows which cards you’re approved for, welcome offers and an APR range. |
| Bank of America | Yes | Name, Last 4 of SSN, Date of birth, Address, Card preference | Shows which cards you’re approved for, welcome offers and an APR range. |
| American Express | Yes | Name, Address, Last 4 of SSN, Annual income | When prequalifying for a specific card, you’ll see your potential credit limit, special welcome offers and APR through the “Apply with Confidence” feature. A general prequalification will only provide you with recommended cards. |
| Citi | Yes | Name, Address, Last 4 of SSN, Annual income | Shows special welcome offers only available through their tool. Also shows your purchase APR. |
| Apple Card | Yes | Apple ID, Address, Email address, Name, Phone, Last 4 of SSN | Shows your credit limit and APR. |
| TD Bank | Yes | Name, Full SSN, Address | Which cards you qualify for, special offers and APR range |
| US Bank | No | ||
| PNC Bank | Limited basis | Your PNC online banking login |
How to boost your chances of scoring a prequalified credit card offer
Issuers typically consider factors like your credit score, credit history, income and debt obligations when screening customers for prequalified offers. Many issuers also offer an array of products for different types of customers and stages of credit building.
And while each issuer — each individual card, even — has its own approval requirements, there are a few basic steps you can take to improve your odds of getting a prequalified offer:
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One of the first and most important steps you can take to improve your credit profile and approval odds is to keep up with payments on your existing accounts. Payment history makes up a whopping 35 percent of your FICO Score, so if you have any outstanding payments, be sure to pay on time, every time, going forward.
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Another key step is to pay down as much of your existing card balances as you can — and to pay them off completely if possible. That’s because credit utilization — the amount of money you’ve borrowed relative to your total available credit — is one of the biggest credit scoring factors, accounting for 30 percent of your FICO credit score.
Additionally, high credit utilization that’s negatively affecting your score can be resolved within just a few weeks, while the credit impact of missteps like late payments or bankruptcy can take years to fade.
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If you aren’t getting a prequalified offer on the card of your dreams, it’s worth requesting a free copy of your credit report from AnnualCreditReport.com and reviewing it to get a better sense of where you stand. Not only will this allow you to see any negative items on your report that may be holding you back and better focus your credit repair efforts, but you may also come across credit reporting errors that need to be disputed. Credit reporting errors are all too common, and you may even find you’ve been a victim of identity fraud.
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If your credit score is in rough shape, or you have a limited credit history, many of the prequalified offers you’ll receive will carry harsh terms and high fees. These so-called “fee-harvester” cards often do more harm than good.
Instead of going with whatever issuer will have you, it’s wise to take your time to build or rebuild your credit with a safer option, like a no-annual-fee secured credit card or a credit-builder loan. These options are typically easy to qualify for, relatively low cost and, in the case of secured cards, sometimes offer you a chance to upgrade to an unsecured product after you’ve demonstrated responsible use.
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While income is not included in your credit report, it can still be a factor when it comes to getting prequalified card offers. Card applications almost always ask for your income when you apply, but you can also update your income with card issuers voluntarily once you become a customer. If your income has increased since you first became a customer of your current card issuer, updating it may get you more prequalified offers for higher-tier cards.
The bottom line
Finding out whether you’re prequalified or preapproved for a credit card is always a smart move to make before you apply. Doing so can save you from wasting a hard inquiry on your credit report on a card you might not even be able to get. It’s also a great way to see what kinds of offers are available to you as you shop around for the best credit card for your financial situation and lifestyle.
Just keep in mind that not all card issuers allow you to check your prequalification status, and even if you do prequalify, you’re still not guaranteed to get the card you want. Maintaining as high of a credit score as possible, as well as a low credit utilization ratio, will improve your application’s odds of success.
Frequently asked questions about prequalified offers
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On the surface, neither offer reigns supreme. In either case, a hard credit inquiry still applies to your credit history when you formally apply. If your financial status suffers a dramatic change, a preapproval offer can be dropped, cementing the point that nothing is guaranteed. While both offer an insight into what type of credit card you may be eligible for, take these tools with a grain of salt.
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Yes, you can still get denied for a preapproved credit card. The credit card company may have extended a firm offer of credit after a basic review of your credit profile, but if there’s new negative information presented during your formal application, you could get a denial. This can also be the case if there’s been a drastic change in your financial status, like going from employed to unemployed or taking a sharp pay cut.
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Even if you haven’t been preapproved for a credit card, you can still get approved if you meet the lender’s qualifications once you formally apply. A preapproval simply means the issuer is letting you know that, based on an initial look, you meet their approval requirements. But if you’re confident that your credit score and income meet the requirements for that credit card, then you might not need to take the extra step of getting preapproved or prequalified.
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