Have you ever received a pre-qualified credit card offer in the mail? If you’re looking for a new credit card, the offers may be helpful, otherwise they might be annoying. But do you know why you’re receiving them? We’ve got the info about why you’re receiving these offers and how to either utilize the offers or opt out of receiving them.
How do you get pre-qualified or pre-approved?
Pre-qualification and pre-approvals are terms that are often be used interchangeably, especially when it comes to credit card offers. However, it's good to remember that a pre-qualification is an estimate of what you will qualify for, while a pre-approval is a more definite approval for a specified amount.
Many credit card companies will work with the consumer credit bureaus to put together a list of people to send offers to. Here's how it works: the consumer credit bureaus, like Equifax, Experian, and TransUnion, are able to provide information to these credit card companies about people based on their credit history. The credit card companies will provide the bureaus with a list of specific credit criteria that they’re looking for and then the bureaus will provide a list of people who meet those criteria requirements.
Typically, the lists requested by the companies are used to find borrowers with a specific credit history so that the company can either market to people more likely to be approved on their products or appeal to people who may be in need of credit card due to negative history. The pre-qualification and pre-approval offers are then sent out via mail.
Benefits of These Offers
There’s actually the option to request these offers from many credit card companies as these offers can help you access the specific benefits to being pre-qualified. For example, pre-qualification offers don’t require a credit check, so it can enable you to browse credit card offers without hurting your credit.
Additionally, these offers can sometimes provide special promotions that are exclusively available through pre-qualification. Companies can provide incentives that are specific to borrowers with a good lending history. This can be a great way to get better terms or extra rewards on your credit cards. Just make sure that you understand how credit cards work and how to use them wisely before jumping into applying.
If you’re not in the market for a new credit card or for any pre-qualifications, these offers can be an annoyance. If you would like to opt out of these offers, look at the offer and see if you can find an opt out notice. Once you’ve found that, you can simply follow the directions provided to opt out of any future offers. If you don’t see an opt out notice, the offer you’ve received is most like a generic offer and is not based on your specific history.
Whether you're looking to opt out or to take advantage of special credit card offers, understanding these pre-qualified credit card applications can help you make informed decisions about how to manage them. If you are looking for a new credit card with great benefits and good rates, be sure to check out these credit card options from Wasatch Peaks.