Pre-Approval Credit Scores – Episode #102

Pre-Approval Credit Scores

Have you ever wondered how you get pre-approved for a credit card?  Or, why do you sometimes get pre-approved only to be declined in the application?

This is because your credit scores are pulled at different times, for different reasons. Your credit score is pulled by the card issuers to determine the likelihood of your approval for a credit card, and it might be one factor among others that’s used to determine whether or not you receive a pre-approved offer. But, as you might guess, your credit score is just one factor in the overall decision for actual approval. Your income is going to play a role, your length at a job may be a factor as well.

Annoyed that your credit score is checked without your consent?   We can’t offer much advice here as the companies are legally allowed to do check your FICO credit scores when they decide whether to solicit you for credit card applications. We can give you advice on how to cut down on the number of printed paper pre-approvals you get, but we can’t control the number of times your credit score is checked. At least you need not worry that these checks will impact your score. Only an inquiry from a consumer to a credit lender impacts your credit score.

Have you noticed that the number of pre-approval letters has really dropped in the last several months? That’s because the credit issuers are focused on getting their portfolios cleaned up. The number of direct mail offers has decreased by 40+% and email offers have decreased by 67%. They aren’t looking to expand into new customers, and instead are trying to figure out to decrease their credit default exposure risk by lowering credit limits on their risky card holders.

Want some good news? Think of all those credit card offers that have stopped — nearly 300 million pieces a month — that aren’t ending up in landfills.

Similar Posts:

• Pre-Approval Credit Scores – Episode #102
• Manage Your FICO Credit Score for a Refinance – Episode #52
• Credit Score Impact On Student Loan Applications – Episode #65
• Do Consumers Really Understand Credit Scores? – Episode #48
• What is a Virtual Credit Card? – Episode #32
• Annoying Myth: Paying off Full Each Month Doesn’t Build Credit Scores – Episode #106