Why People Should Keep Tabs On Prequalify Credit Card Offers

iQuanti: You’ve probably received emails or post from banks saying that you are entitled to certain credit cards. A lot of people just throw them out, but even if you don’t want a credit card right now, they’re worth keeping.
If a card issuer has sent you one of these ‘prequalified offers’, it basically means that if you formally apply for it, you’re likely to be approved. More thorough checks would be required so it is by no means a guarantee, but you’ve met their initial criteria for approval. Even if you haven’t received any offers from card issuers, you can go their website and check for prequalified offers yourself.
Let’s take a look at why prequalified offers may be beneficial for you.
Applying for a credit card
Jumping straight into a credit card application can be intimidating. Formally applying for a credit card triggers a ‘hard enquiry’ into your credit report which temporarily drops your credit score and remains in the report for two years.
Worse than this, however, is that there’s no guarantee you’ll even be approved, so you may end up empty handed with a worse credit score. In this situation, you still wouldn’t have the credit card you’re looking for and you’d have to wait for your credit score to improve, or be forced to make further applications with a lower score – all of which is far from ideal.
How prequalified offers can help you
Prequalified credit card offers remove a lot of the guesswork from the application process, giving you a clearer idea of where you stand before applying. You can enjoy peace of mind knowing that your application will in all likelihood be approved and get a better sense of the kind of cards you’re entitled to in the process. You can do all of this without affecting your credit score because prequalified offers only trigger a ‘soft enquiry’ into your report.
Of course, if you do pursue a prequalified offer with an official application, the hard enquiry will be triggered, and your credit score will take a brief hit. This is unavoidable, but it’s comforting to know that it’ll probably be approved, and you’ll end up with a credit card at the end of the process.
Prequalifying is also helpful with just deciding whether or not to get a credit card. For example, you may be drawn in by attractive rates and terms but discover that realistically, you would only be approved with worse terms. After discovering this by seeing which cards and rates you prequalify for, you may decide that a credit card isn’t the best path for you at this moment.
If possible, aim to prequalify for a new credit card before applying. It’s can be very easy to do, it’s free and your credit score remains untouched. You’ll know how good your chances are of getting the card you’re applying for, and the entire process will be smoother and less stressful than it needs to be.
Source: iQuanti, Inc.