What Does Pre-Approved Mean for a Credit Card?

If you receive pre-approved or pre-qualified offers for credit cards you may think it means you’re automatically approved. But that’s not the case. Both pre-approved and pre-qualified refer to a screening process that checks whether you’re likely to be approved when you apply for a credit card. When you’re looking for your next credit card, consider what it means to be pre-approved vs. pre-qualified, and how the prescreening process works.

Pre-approved credit card offers

When you receive pre-approved credit card offers, it typically means the card issuer has determined that you meet certain criteria after they run a soft credit check, which does not impact your credit. If you continue to meet the issuer’s credit standards and have sufficient income when you apply, among other requirements, your chances of getting approved could be higher (but are not guaranteed).

How do pre-approved credit card offers work?

Pre-approved means that the credit card issuer believes you’re likely to be approved, but approval is not guaranteed. You’ll still have to submit an application, and the credit card company will then do what’s known as a hard credit inquiry, or “hard pull,” of your credit report. After reviewing your credit score and report, along with evaluating your income, expenses and other information, the credit card issuer will make the final decision on whether you qualify for the card, and the credit limit you might have.

Pre-approved credit cards vs. pre-qualified credit cards

Some credit card issuers use pre-qualified and pre-approved interchangeably, but they are not always the same thing. In some cases, pre-qualified has less strict criteria, while pre-approved may mean you’ve been screened more carefully. For example, some card issuers may use only the information you provide when considering whether you’re pre-qualified. For pre-approval, the issuer may also check information contained in your credit report.

Pre-qualified might also mean your credit score simply falls into a selected range. To be pre-approved, the same issuer might require that specific components of your credit history meet minimum requirements, such as having no late payments. In that case, two people with the same credit score might be pre-qualified, but one might be pre-approved while the other is not.

Other credit card companies may have different definitions for pre-approval and pre-qualification.

Can I get a credit card if I’m not pre-approved or pre-qualified for a credit card?

If you don’t pre-qualify for one credit card, you may pre-qualify for another card with different requirements. Since checking for pre-approval and pre-qualification offers may not impact your credit score, you can check more than one credit card to see if you pre-qualify. This can help you find the right credit card for your needs.

How to get pre-approved or pre-qualified credit card offers

You may receive a pre-approved or pre-qualified credit card offer in the mail, or you may be able to apply online to be pre-approved or pre-qualified. The online form provides credit card issuers with some basic personal and financial information.

Pre-approved or pre-qualified credit card offers in the mail

One way to be pre-approved for a credit card is by applying for an offer received in the mail. You may receive offers in the mail because a credit card issuer obtained a list of consumers who met the credit card’s initial credit criteria from the credit bureaus.

What are the benefits? The benefit of receiving pre-approved or pre-qualified credit card offers in the mail is that you can sometimes get very competitive introductory APRs. This is also a great way to learn more about various credit card offers from different issuers and weigh the benefits of each one. You could learn more about a reward program or member benefits associated with each card and select the one that best fits your particular lifestyle and financial needs.

Pre-approved or pre-qualified credit card offers online

An online approval tool like Discover’s pre-approval form involves filling out a short online form where you provide basic personal and financial information as well as providing your consent to pull your credit report. From there, you may be shown a credit card offer that the issuer feels best fits your financial needs if you meet the credit card’s criteria.

Filling out Discover’s credit card pre-approval form will have no impact on your credit to check for offers because there is no hard inquiry on your credit report until you choose to apply for an offer. Furthermore, since you are giving the issuer information about yourself, your offers will be personalized.

Another benefit of getting pre-approved or pre-qualified online is to help with your research. You can see what credit cards you might qualify for prior to applying and consider the benefits of each one, like what type of rewards credit cards are offered, what the interest rate might be, or if there is an annual fee on the card.

With Discover, if you decide to apply for the pre-approved offer, the application will autofill with the information that you already provided, making the process that much simpler. All you’ll have to fill out is a few additional fields to complete your application.

Does pre-approval and pre-qualifying for credit cards mean I’m approved for a credit card?

Keep in mind that even if you receive a pre-approved credit card offer, you will still have to apply for the card once the pre-approved offer is presented. It is important to understand that even if you have been pre-approved, you are not guaranteed to be approved once you complete an official application. For example, depending on whether the information in your credit report changed from the time you were pre-approved, you may be denied for a pre-approved offer. If you are declined, you will receive a letter explaining the reason(s) why you were not approved, and you will also be entitled to a free copy of your credit report.

Should I still apply if I’m not pre-approved or pre-qualified for a credit card?

If you request a pre-approved offer online but you’re not provided with an offer, it means there’s something in your credit history or other information you’ve provided on the pre-approval request that is keeping you from meeting the qualifications for pre-approval. You may wish to obtain a copy of your credit report to review and address any issues before applying for the credit card. If there are errors on your credit report that are keeping you from being pre-qualified for a credit card, you can dispute them with the credit bureau.

Does pre-approval or pre-qualification affect your credit score?

Pre-approved and pre-qualified credit card offers typically do not affect your credit score. Credit card issuers often do a soft inquiry for pre-approval, so it will not impact your score. But if you decide to apply for the pre-approved offer, a hard inquiry will be placed on your credit report, which will likely impact your score.

How can I improve my chances of being pre-approved or pre-qualified?

If you don’t pre-qualify for a credit card, you can take steps to improve your credit score so that you may be eligible for pre-approval offers down the road. One important factor in credit scores is to pay your bills on time each month. If you missed or have late payments, that can bring your credit score down and hurt your chances of pre-qualifying for a credit card. Also, using too much of your available credit can lower your score, so it’s a good idea to keep your balances low.

Following these and other good credit habits can be a helpful way to maintain a healthy credit score and may help you receive pre-approved credit card offers.