Like many people, you probably end up with a series of different letters from banks, whether they reach to your email or actual mailbox. Most people hunt the mail directed to them, bills and notifications. They also pay attention to fashion and sports magazines, but this is pretty much it. Unsolicited mail tends to go straight to the junk bin. You get all kinds of ads, coupons and catalogs. However, there is also a middle aspect between solicited and unsolicited mail – pre qualified credit cards offers. What are these offers about? Plenty of people have seen these things, yet they have a series of questions about them. They do open those letters because they expect to see some bills or perhaps some special offers. However, the offers are different. Understanding how they work and what they do can help you make wiser options.
Understanding why you got an offer for pre qualified credit cards
Keep in mind that credit card issuers do not offer pre approved cards randomly. They do want customers, indeed. But then, they also do their homework before dropping a letter. These special offers go in two different directions.
- Some creditors set the minimum limit for the credit score and ask a consumer reporting form for some lists. The search criteria include this minimum score, so the issuer inevitably finds a list of potential customers. Most of them get credit card offers.
- Other creditors gain the lists, but they have no clue about the credit scores. Therefore, they submit the list instead. They ask for a list with those who actually pass the selection criteria. This is the category of people whose mailboxes will be filled with letters.
In other words, you get pre approved without even demanding these offers. Getting offers for pre approved cards means that you are an excellent candidate. However, remember that being pre approved does not always mean that your request will be accepted. There are more criteria to be checked later on. These offers come in handy if you are actually looking for a credit card. Otherwise, they might look irrelevant, yet it still pays off to research the each letter yourself.
Effects of pre qualified credit cards over your credit
Pre qualified credit cards might look challenging at first. You probably know already that credit inquiries show up, while too many of them will affect the credit score. There is nothing to worry about though. Credit inquiries come in two different forms. Soft inquiries are less detailed and only demand the score. No other details are needed. This is exactly why issuers conduct more research once you decide to take their offers.
On the other hand, hard inquiries show up on the report. These hard inquiries are done when you actually apply yourself. Therefore, getting a million offers for pre qualified credit cards will not affect the score, but applying to one of them will show up. Sure, there are plenty of misconceptions regarding this aspect, yet there is simply nothing to worry about.