Finding the right credit card for you can be tricky. If you want to compare credit card offers without affecting your credit score, pre-qualification could be the answer.
Pre-qualifying lets you know what cards you might be approved for without impacting your credit score. Lenders may use soft credit inquiries to access your credit report and make personalized offers based on your credit profile.
Note that pre-qualification doesn't guarantee approval, but it can indicate higher approval odds.
Pre-qualified vs. pre-approved
Many card issuers use the terms pre-qualified and pre-approved interchangeably. Depending on the lender, there may be small differences. Generally, pre-qualification requires a relatively basic review of your credit report to determine if you're likely to qualify for a credit card. Pre-approval may require a more thorough review.
What is pre-qualification?
Pre-qualification is an initial check that lets you know if you might be eligible for a credit card. Typically, consumers pre-qualify using online pre-qualification tools provided by different lenders. You may be asked for a few personal details, like your name, address, income, Social Security number and your monthly rent or mortgage payment. Lenders evaluate your eligibility based on these factors and the information in your credit report. Here’s what to expect from pre-qualification:
- Involves a soft credit inquiry that does not impact your credit score
- Based on basic information, such as your income and credit profile
- Not a guarantee of approval
- Useful for comparing offers without affecting your credit
- Can help you narrow down your options
What is pre-approval?
Some lenders use existing consumer data to conduct soft credit inquiries and send out promotional offers, letting consumers know they are pre-approved for a credit card. Pre-approval more often refers to offers sent by mail or email that customers are selected for. It may also involve a more rigorous process and may be a stronger indication that you meet a lender’s criteria for a credit card. Here’s what to know about pre-approval:
- Often involves a more detailed review of your credit profile
- Uses a soft credit inquiry, so there’s no impact on your score
- May indicate a higher chance of approval, but still not guaranteed
- Can give you a good idea of what cards may be available to you
How to see if you’re pre-qualified for a credit card
Here are two ways to see if you pre-qualify:
- Mail or email offers: Check any promotional communication from your lender or credit card issuer. If a bank has reviewed your credit profile and thinks you might qualify, they may send you a pre-approved offer.
- Online pre-qualification tools: Many credit card issuers allow you to check for pre-qualified offers on their websites at no cost. You’ll need to provide basic details like your name, address and income.
