What Does Pre Approved Mean Exactly?

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Michael
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What Does Pre Approved Mean Exactly?

Postby Michael » Wed Oct 30, 2013 10:50 am

I was just 'pre-approved' for the new 'Fuel Rewards Mastercard,' issued by Comerica Bank.

I have not accepted yet.

What exactly does it mean when you're 'pre-approved' for a credit card?


Vandalized2
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Postby Vandalized2 » Wed Oct 30, 2013 11:27 am

In my opinion I feel "pre-approved" means you meet their general guidelines for acceptance according to what the credit bureaus provide to the issuers. Then when you apply they look at your overall situation and determine if they in fact want to lend to you.

Michael
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Postby Michael » Wed Oct 30, 2013 11:30 am

So it's a 'hard hit'?

Vandalized2
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Postby Vandalized2 » Wed Oct 30, 2013 11:34 am

To my knowledge any application is a "hard hit." Pre-approved to me feels like an invite to a party but when you get their you still have prove you bring something to the party then the bouncer will let you in.

Michael
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Postby Michael » Wed Oct 30, 2013 11:57 am

Good analogy.

Thank you !!

MemberSince99
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Postby MemberSince99 » Wed Oct 30, 2013 12:33 pm

Honestly, it all depends. From what I've seen if you get a pre-approval from FNBO, you're 98% likely to get approved if you apply. With others it's a crapshoot.

Basically like they said it means they looked at some parts of your credit. and you met whatever criteria they were looking for that says you might be qualified for their card and interested. It's mostly advertising though I believe by law if they tell you that you are pre-approved it's supposed to mean that they approve a certain percent of those who apply. But you can be pre-approved and be declined - I've had that happen to me.

Obi-dan
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Postby Obi-dan » Thu Oct 31, 2013 10:40 am

When I worked for Wells Fargo we were told that a pre-qualified offer meant that the client profile suggested a client would likely be approved but credit had not been looked at yet so there were still lots of unknowns and a chance client would not be approved.

Pre-approved meant they not only met the profile from the bank side but that there had also been a soft pull and that unless something changed between then and when the hard pull was done upon acceptance of the offer, they would be approved.
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tigerowl06
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Postby tigerowl06 » Fri Nov 01, 2013 12:18 am

I think often it means they have done a soft pull on your credit report and think they're interested. But that soft pull isn't going to give them info like annual income.
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