Pre-qualifying can help you better understand what credit card offers you may be eligible for based on your credit profile. But does it affect your credit score? Typically, it doesn't. Pre-qualification involves a soft credit inquiry, which does not impact your score. Applying for a credit card, on the other hand, triggers a hard inquiry, which can temporarily lower your score by a few points. Learn more about pre-qualifying for credit cards below.
What does it mean to pre-qualify for a credit card?
Pre-qualification is a process that helps lenders evaluate your eligibility for credit cards.
You can pre-qualify for credit cards using free online pre-qualification forms on issuers’ websites. This can be a great way to see what cards you might be qualified for before committing to an application. You may also receive promotional emails or mail directly from your lender, letting you know you’ve pre-qualified for certain credit cards.
Note that pre-qualification indicates likelihood of eligibility but does not guarantee application approval. A lender can reject your credit card application even if you’ve successfully pre-qualified.
How does pre-qualification work?
When you submit your personal details, the card issuer performs a soft credit check to review your credit report and determine your creditworthiness. A soft credit inquiry lets lenders gauge the risk of lending to you without impacting your credit score.
While some lenders use the terms pre-qualify and pre-approve interchangeably when referring to credit cards, they don't always mean the same thing. Pre-qualification may be a fast and basic assessment, and pre-approval may require a more in-depth review of your finances. Some lenders use pre-qualify to refer to when you fill out a form to check your offers and pre-approved for offers they send to you over mail or email.
What is a soft inquiry?
Soft inquiries can appear on your credit report, but they do not affect your credit score. When you check to see what credit cards you pre-qualify for, the issuer will likely run a soft inquiry. You can check to see which cards you pre-qualify for multiple times in a short time span without worrying about a dip in your credit score.
Soft inquiries usually occur when you check your own credit or receive pre-approved offers. A hard inquiry generally only takes place when you apply for a loan or credit card. A hard inquiry can lower your credit score by a few points for about a year, and many hard inquiries in a short period can signal risk to lenders.
How to see if you’re pre-qualified
You can pre-qualify for credit cards in two ways:
- Direct offers from lenders: Credit card issuers may send pre-screened credit card offers based on your credit profile. Check your email and physical mail for offers.
- Pre-qualification tools: Card issuers often have pre-screening tools on their sites that let you see which cards you qualify for. You may also be able to see what cards you qualify for by calling a card issuer or by visiting a bank branch and talking to a representative.
Use the Citi pre-screening tool to check your credit card eligibility. Simply enter a few personal details, including your name, address and last four digits of your Social Security number (SSN), to get personalized offers.
Pre-qualification can be a great way to compare different credit cards before you choose your best fit.
Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
