No, a preapproved credit card offer does not guarantee that you will get approved for the credit card, but your odds of approval are very high – around 80-90%. Being preapproved for a credit card means the issuer has determined you meet the general eligibility requirements for the card based on your credit history. However, you will still need to apply for the credit card to get a final approval decision.
We will discuss these nuances and more in further detail below.
Why Preapproval Doesn’t Guarantee Actual Approval
Receiving a preapproved credit card offer merely indicates that you meet the general criteria for approval based on credit report data. You will still need to apply, provide additional information about your finances, and allow the issuer to thoroughly vet your suitability for the product in question.
Issuers must evaluate an applicant’s ability to pay. The Credit CARD Act of 2009 requires issuers to evaluate an applicant’s ability to pay prior to granting a new line of credit. Issuers cannot obtain that information from your credit reports alone. You must fill in the blanks for them with details on your credit card application.
Issuers need permission from applicants. Credit card companies can estimate your likelihood of approval for a particular card. However, they can’t confirm your approval without your go-ahead (which is what an application serves as) or you filling in some of the blanks (such as income information).
Soft pulls don’t give the full picture. Even though issuers will see your complete credit report when they do a soft pull to evaluate your basic eligibility for preapproval, issuers will still need updated information about your income and employment status to determine whether you’re actually approved.
How Do You Get a Preapproved Credit Card Offer?
Credit card companies use basic underwriting data from the major credit bureaus to determine which credit card offers to mail different types of consumers. This is more effective than sending the same offer to everyone en masse because inevitably a large portion of the market either won’t qualify or would never apply since their credit standing and income merit something better. You’re simply more likely to seriously consider an offer if it represents a feasible upgrade over what’s currently in your wallet.
While preapproved credit card offers are typically conveyed to consumers through traditional mail, credit card companies are increasingly allowing people to visit their websites and input their name, date of birth, and Social Security number to automatically determine which cards they are preapproved for. When someone checks their own preapproval odds by inputting their information, this is technically called pre-qualifying.
Learn more about how to pre-qualify for a credit card.
Compare Different Types of Credit Card Offers
While most people consider the terms to be interchangeable, there are actually three distinct types of targeted credit card offers: 1) preapproved offers; 2) preselected offers; and 3) invitations to apply. Each one is based on different information and indicates a different level of approval likelihood.
Term | What It Means | Info Used to Target | Acceptance Rate |
Preapproved | Your credit track record indicates that you are the type of consumer the card issuer wants using its product, and you are almost assured of getting the card should you apply. | Depending on the issuer, credit data from 1-3 major credit bureaus and, potentially, credit scores as well. | 80% - 90% |
Preselected | You fall within the issuer’s general underwriting criteria, but more information is needed to verify your suitability for the card in question. | Same as with preapproved offers, but discrepancies between reports or thin files may reduce issuer certainty. | 70% |
Invitation to Apply | The issuer believes that you might be interested in submitting an application for the card given your interests and/or demographic information. However, the issuer is making no assurances about the suitability of your credit standing. | Non-credit data such as your ZIP code and housing situation. | 10% - 40% |
Learn more about the difference between preapproved and prequalified offers.
How to Increase Your Credit Card Approval Odds
- Increase your credit score. The higher your credit score is, the more likely you are to get approved for a credit card. WalletHub has some tips on how to improve your credit score, and you can also get personalized recommendations with a free account.
- Check your credit report for errors. Errors on your credit report can negatively impact your credit score and reduce your chances of getting a credit card. Checking your report often can help you spot and fix errors quickly, as can signing up for free credit monitoring. If you do find an error, you can file a credit report dispute online, by phone, or by mail with the major credit bureaus.
- Pay your bills on time. Payment history is the most important factor in determining your credit score, so late or missed payments drop your credit score and lower your chances of getting approved for a new credit card.
- Show proof of income. Having more than enough income to afford minimum monthly payments can increase your likelihood of getting approved. Income can include wages that you get from work, or income you get from a rental property, investment accounts and more.
- Don’t apply for new cards too often. Applying for new credit cards too often or in bulk doesn’t actually increase your chances of getting approved for a card. In fact, it can do the opposite by signaling to creditors you are desperate to borrow funds. It’s best to wait at least 6 months between credit card applications.
- Apply for a secured credit card. If your credit score is low or you are having a difficult time getting approved for an unsecured card, a secured credit card is probably your best bet. Since secured cards require a security deposit, your approval odds are high. Plus, keeping your account in good standing with on-time payments can build up your credit and eventually help you graduate to an unsecured card.
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