Getting pre-approved for a credit card can be a beneficial move, especially when you are in the process of building or rebuilding your credit score. Also, preapproval can increase the chances of getting approved for a credit card. It provides reassurance that you are likely to be eligible for the credit card you desire before you complete the full application process. Below are the seven essential steps to obtain preapproval for a credit card.
1. Understand what Preapproval Means
Preapproval is an early step in the credit card application process where a credit card issuer checks whether you meet their initial criteria by reviewing your credit report. This doesn’t mean you have been approved already; however, it’s a positive indication that your application might be approved if you decide to apply.
2. Check your Credit Score
Before starting the preapproval process, it’s crucial to know and understand your credit score. Most credit card offers require you to have a good to excellent credit score. You can request a free credit report from each of the three major credit bureaus once annually. By reviewing your credit report, you can see your credit standing and gauge the type of credit card offers you might be eligible for.
3. Research Credit Card Offers
It is essential to spend time researching various credit card offers available to identify the one that suits your needs best. Consider factors like annual fees, cash back, travel rewards, and the rate of interest. Comparative shopping can help you find better card deals. Remember, preapproval doesn’t mean you have to accept the offer. So make sure to select a credit card that aligns with your lifestyle and spending habits.
4. Contact the Credit Card Issuer
After identifying the suitable credit card, the next step is to contact the credit card issuer to request preapproval. Some issuers let you check for prequalification on their websites by entering basic information such as your name, address, and Social Security number. This process often involves a soft credit pull, which does not affect your credit score. If you prequalify, it means you have a higher chance of approval, but it is not a guarantee.
5. Understand the Terms and Conditions
Before applying for preapproval, ensure you understand the terms and conditions attached to the card offer. These details may include credit limits, interest rates, fees, and penalties, and how rewards points can be earned and redeemed. It’s crucial to read all the small print so that you don’t face any surprises later.
6. Apply for Preapproval
After understanding all the credit card details, you can proceed to apply for preapproval. The application process is often straightforward – you need to provide your personal information, financial details, and possibly, your social security number. Some platforms allow instant preapprovals, and if you qualify, you will receive a prompt notifying you about the same.
7. Await Preapproval Outcome.
After applying for preapproval, you have to wait for an outcome. If you’re preapproved, the credit card issuer will send you a firm credit card offer. It’s also essential to be patient because banks sometimes take a week or two to mail the preapproval letters. Understanding that being preapproved does not guarantee an approval, you must manage your expectations well.
Conclusion
In conclusion, getting preapproved can, indeed, be a good starting point for getting your desired credit card. However, be conscious of how many cards you apply for preapproval. Every credit inquiry, more than normal, could potentially harm your credit score. Treat a preapproval for a credit card as an important financial decision – because it is! That means doing your homework and taking your time to choose the right offer for you. Happy hunting!
