Is there a way to see if you qualify for a credit card without officially applying for it? In fact, it is easy to know if you would qualify for a credit card with pre-approval or pre-qualification. This is simply a process in which a card issuer evaluates an applicant's creditworthiness and gives an estimate of whether or not they would be approved for a card.
A successful credit card pre-qualification, on the other hand, does not imply that a card will be issued; rather, it indicates that at that moment, the necessary requirements have been met. If you apply for a credit card
after pre-qualification, your credit report will be reviewed again and your full credit history will be reviewed, as well as additional factors such as income. Nonetheless, a pre-qualification is a strong indication that you would qualify for a card.
How Pre-qualifying for a Credit Card Works
Pre-qualifying for a credit card is not the same as applying for a credit card. Furthermore, not all credit card companies provide pre-qualification.
Typically, in order to obtain pre-qualification, you must first visit the website of the card issuer from which you wish to obtain a credit card. You will be asked to fill out some basic information on the website, which will be used to find you suitable offers.
Certain factors, such as income, employment status, or monthly housing payment, that are normally checked during formal application for a card, are not taken into account by some credit card issuers in their pre-qualification process.
What Is the Minimum Credit Score Required to Pre-qualify for A Credit Card?
There is no set credit score requirement for pre-qualification. There are credit cards designed for people with every credit score. If you find that you are being rejected for pre-qualifications
Some credit card companies consider income when evaluating applications for pre-qualification. This is part of your debt-to-income ratio.
How Do I Find Out If I’m Pre-qualified for a Credit Card?
After successfully submitting an application for pre-qualification, the next step is to determine its status. The first method is to use a tool on the company's website to see if you are pre-qualified for a credit card. You will be asked for some information, including the last four digits of your social security number. Usually in this case, pre-qualification approvals or rejections are instant.
Another method is to check your mail and email for pre-qualifications. Rather than automatically throwing them in the bin, take a look at the offers you are already receiving.
Benefits of Pre-qualifying for a Credit Card Before Submitting a Formal Application
Pre-qualification has no effect on your credit score because it only obtains an individual's credit information through a soft credit inquiry. However, if you apply for a credit card formally, your credit scores will suffer a minor drop as a result of a hard credit inquiry.
If your creditworthiness hasn't changed during your pre-qualification for a credit card, you'll have a better chance of getting approved for the card.
Another advantage of pre-qualifying for a credit card is the ability to compare credit card options available to an individual without the hard credit inquiry that comes from applying. This allows for the selection of a card that you would likely qualify for and that suits your needs.