Wait!!! Before you hit the submit the button on that credit application, READ THIS!
Pre-Approval Vs Pre-Qualified Vs Pre-Selected
Pre-Approval – Is the stage before something is officially approved. This means that you’re conditionally approved for the credit card. There is no guarantee that you will be approved. You have received such offers because the bank/lender has soft pulled your credit report and identified your credit file to have met their credit requirements.
The time from when you were soft pulled to the time you actually received the offer varies. Sometimes by 3-5 months.
At the time of the soft pull, your credit report met their requirements. But if you get the offer 4 months later, there is a chance that your credit report may have changed and possible that you may no longer qualify for this offer once you submit your application. .
You must meet the current underwriting criteria at the time you submit your application. You can have a high score, but open collections, lates or high utilization could cause you to be declined even though pre-approved.
The “Best” way to recognize a firm “Offer” is to look for the APR. If the APR is a “Set APR” (13.24%) then this is the rate they are promising you upon approval. If the rate is a “APR Range” (13.24% – 23.74%) then this is NOT a firm offer.
Pre-Qualified – Being prequalified is just about the same as being pre-approved (credit card wise) This can be treated as a pre-approval. Again, make sure to check the APR offer. If a “Set APR” then it’s a solid offer.
Pre-Selected – Means that the bank/lender has obtained a marketing list, most likely from the credit bureaus, of individuals who meet certain credit criteria. The bank/lender does NOT know the details of your credit report until you actually apply.
To quickly determine if this is marketing, look at the pricing details to see if it has a APR range.(13.24% – 23.74%) If so, this is pure marketing and NOT a pre-approval.