Credit Card Pre-Approval: What It Is & Best Offers
When you start looking at your financial situation with a more discerning eye, you’ll realize that there are some expenses which can be reduced or eliminated completely. Credit card pre-approval is exactly that, a process through which you can ascertain whether you qualify before actually applying for it. On pre-approval, the bank checks whether you meet their eligibility criteria and also evaluates your ability to repay a loan in the near future.
If you satisfy all their conditions and their risk assessment, they will give you an offer that is conditional on meeting all predetermined conditions within a specific time frame. Let’s take a look at what exactly this procedure entails.
Best Credit Cards that Offer Pre-Approval
If you’re trying to get a loan or credit card, pre-approval is almost as good as getting the real thing. Pre-approval means that you’ve successfully demonstrated that you are likely to qualify for an offer of credit based on certain criteria. This is advantageous because many lenders will not give you an official offer until they have confirmed that you meet their standards. So what credit card should you get?
If you are considering taking action based on a pre-approval letter from a lender, it is important to understand how it works and what it means for your future applications for credit. Here are some of the most useful tips regarding the best credit cards that offer pre-approval.
OpenSky® Secured Visa® Credit Card
The Sky’s the limit with Secured Visa. You can qualify for this secured card without a bank account or a credit check. This pre approved secured card works well for people who lack a bank account or have poor credit and would like to establish or improve their credit. Secured Visa isn’t maxed out with rewards, but it does offer a competitive interest rate (18.89%), and a flexible payment schedule.
There is an annual fee of $35, but because they report to all three major credit bureaus, there is a good chance to improve your FICO score. One thing to note is that this card requires collateral as part of the balance limit. And if you don’t pay your bill, this deposit is held as collateral by the lender.
AvantCard Credit Card
AvantCard credit card offers quite a high APR (28.24%) and a $39 annual fee. But, customers with poor credit will likely still qualify for pre approved offers. There aren’t any rewards with this issuer, as it is aimed towards borrowers just starting out. It’s perfect when traveling though because there are no foreign transaction fees or penalty APR.
Limited credit may make this an option, but it isn’t necessarily the best choice. You can earn rewards and avoid an annual fee with similar cards. But, if you are trying to build credit, have a low income or poor credit, this is an ideal option.
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
The Petal® 2 “Cash Back, No Fees” Visa® is one of the best for building credit. The pre-approval process comes with a decent rewards program and doesn’t require a financial background check in order to be approved for credit limits starting at $300 to $10,000 The Petal has no annual fee that provides you with cash back rewards on every purchase, at 15.24% – 29.24% APR.
It also offers easy access to a range of benefits and services, including roadside assistance, travel insurance, extended warranty protection, and free identity theft monitoring.
Capital One QuicksilverOne Cash Rewards Credit Card
With its cash-back rewards and pre-qualification, Capital One QuicksilverOne is a solid choice for those with fair credit. After just six months of card membership, you can get a higher credit limit, even though it has an annual fee of $39 and offers unlimited 1.5% cash back on every purchase.
A few fair credit cards don’t offer rewards. In contrast, Capital One provides flat-rate benefits that are comparable to industry averages. And while the APR is slightly above average (28.49%), it’s in line with pre-approved cards for fair credit.
BlockFi Rewards Visa® Signature Credit Card
One of the first cryptocurrency rewards cards to hit the market, the BlockFi Rewards Visa® Signature isn’t the best. For every eligible trade, it earns 0.25% back in crypto. For every purchase, it earns 1.5% back in crypto. After $30,000 of annual spending, it earns 2% back in crypto. One drawback to this is that rewards are not earned in real time, which can reduce the value of points.
The pre-approval offer notifies you of your credit limit, and typical card features. Things like APR (11.74%-21.74%) will be based on your pre qualification FICO score. An invitation code will then be sent to you so you can decide whether to accept the offer.
Deserve® EDU Mastercard for Students
This card is ideal for college students who want a low-rate pre-approved card with no fees. There are no prerequisites to get this card: it’s open to everyone, regardless of age, income, or financial history. As long as you pre-qualify, the Dare EDU Mastercard can be yours. This card has no annual fee or foreign transaction fee, making it an excellent choice for anyone who wants to save money on everyday expenses or build a savings account while going to school.
The DARE® EDU Mastercard for Students has no activation, maintenance or late payment fees. Although the APR is quite high at a fixed 20.99%, unlimited 1% cash back, and guaranteed pre-approved offer more than make up for it.
Capital One Platinum Credit Card
If you are looking to establish or build credit, Capital One Platinum pre-approval offers are worth considering. Having average credit makes this an appealing option. One of its most noteworthy advantages is that it offers the possibility of achieving a higher balance after six months of on-time payments. Capital One Platinum also has an $0 late fee. There’s no annual fee, but 3% or 5% on balance transfers, whichever is greater.
Other notable features include chip-and-signature technology for enhanced security and fraud protection, automatic identity theft resolution services, 24/7 customer service, and lost card replacement through the Capital One Lost Wallet Service.
Upgrade Cash Rewards Visa®
This pre-approved product provides a lot of flexibility and gives you more repayment options. For someone who wants to improve their credit habits, this card offers a lot of structure, but if you’re looking for something flexible, it could be a problem. Upgrade lets customers extend their balance, which means payments can be made in recurring monthly payments. People who need a little push towards responsible payment behavior may benefit from this.
Those who require more leeway in paying the bill, however, may feel restricted by the payment plan. Because in order for it to work, consistent payments need to be made. In terms of pre-approval rewards, Upgrade comes with a 1.5% cash back rate, so you can earn money back on all of your purchases. Plus, there are no fees associated with this card, so you don’t have to worry about paying anything out of pocket.
What Are Pre-Approval Credit Cards?
Pre-approval is a way to get a head start on the process of selecting which card benefit you want the most. If you have a less-than-perfect credit score, you may be able to qualify for this loan. It’s not a guarantee that you will be pre-approved, but it’s an opportunity to show lenders that you’re serious about taking care of your financial situation.
Pre-approval offers typically come from a financial institution that doesn’t favor excellent credit. They can include things like a credit check and report analysis, as well as an in-person interview.
How Do I Get a Pre-Approved Credit Card Offer?
It’s not easy to get a pre-approved offer. If you don’t meet all the requirements, you might not get an offer at all. There are some things you can do to increase your chances, though. When you want to qualify for pre-approved offers, always include information about your credit score. These are calculated from your credit report. They show how much risk you pose to the lender. If you want a good pre-approved deal on that new car, show the dealer that you’re worthy of it by boosting your credit score.
Another thing you can do is pay off old debts so that there are no open accounts on your record. Closing old accounts also helps boost your credit score because it shows lenders that you are capable of managing debt responsibly. This way, you are more likely to qualify for pre-approval. Anyway, you should understand that taking a lot of credit cards isn’t the best decision, it’ll be hard to repay them, but if so, you can apply for credit card consolidation.
Does Credit Card Pre-Approvement Hurt Your Credit?
During an approval process, the credit card issuer reviews your creditworthiness beforehand and then decides whether or not to approve you for the card. It’s designed to give you some peace of mind and allow you to build your financial history before applying for a new card. Your credit score is not affected by a pre-approval offer.
The reason for this is that creditors only pull your report with a “soft pull” to determine your eligibility. The only way you will see an impact is if you accept the offer.
What Credit Cards Can You Pre-Qualify For?
There are plenty of credit cards out there to choose from, but some are better than others. Before making a decision, find out what kind of credit card you can pre qualify for and how much you can get. Some of the lenders you can get pre approved offers with are:
- OpenSky® Secured Visa®
- Petal® 2 “Cash Back, No Fees” Visa®
- Capital One QuicksilverOne Cash Rewards
- BlockFi Rewards Visa® Signature
- Deserve® EDU Mastercard for Students
- Capital One Platinum
- Upgrade Cash Rewards Visa®
Pre-Qualified vs. Pre-Approved Credit Card
During the application process, things can get confusing with the lending jargon. There are two types of application process: pre qualification and pre approved.
Pre qualification means a consumer has been determined to be low risk by the lender. Generally speaking, if you pre-qualify, you’ll have a higher chance of approval than someone who’s pre-approved for a card. Essentially, pre-qualification applicants can be approved immediately.
This means the applicant has been evaluated by the card company based on their credit history and income level. It is more likely that pre-approved applicants will be denied than those who qualify.
Pre-approval offers typically come from a lender who doesn’t favor those with good credit. They can include things like a credit check and report analysis, as well as an in-person interview. It’s important to note that pre-approved offers are not loans. They are simply an opportunity for you to apply for a card before you’re accepted for one. They help lenders determine whether you’re likely to repay them on time and in full.
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What credit cards can I be preapproved for?
Some of the lenders you can get pre approved offers with are: OpenSky® Secured Visa® credit card, AvantCard, Petal® 2 “Cash Back, No Fees” Visa®, Capital One QuicksilverOne Cash Rewards, BlockFi Rewards Visa® Signature, Deserve® EDU Mastercard for Students, Capital One Platinum, Upgrade Cash Rewards Visa®
Which credit card has the fastest approval?
Almost all lenders these days provide the option to apply online. As long as borrowers provide the necessary information such as mailing address, bank accounts, and employment status, financial institutions typically send a pre approval offer straight away – provided their requirements are met.
Is preapproved better than prequalified?
Generally speaking, if you’re pre-qualified for a credit card, you’ll have a higher chance of approval than someone who’s pre-approved for a card. However, if you’re looking for a good deal on an offer that requires approval from an issuer, then consider applying for it as soon as possible to get a pre qualified credit card.
How long is preapproval good for?
Pre approval offers typically last 60 to 90 days. As soon as they expire, you will need to contact your lender again and request a new application. Since most of your information is already on file, this usually doesn’t take too long.
What is the best credit card company?
There are 149.3 million Chase credit cards in circulation, making it the top issuer in terms of both purchase volume and card volume in the U.S. For purchases, Chase holds the largest share, and for cards, it ranks second.
Can I get a pre-approval without a credit check?
Without your credit report, your lender cannot give you an accurate estimate. You won’t have to disclose as much financial information when you pre qualify. But pre approval is how lenders decide interest rates and loan amounts, and they can’t do this without checking your credit.