Credit Card Pre-Approvals: Debunking the Myth of Credit Score Damage.
Concerned a credit card pre-approval will hurt your credit? Fear not. Pre-approvals typically don’t impact your credit score, as long as you’re using the right tools.
So, go ahead. Check your card eligibility with Quick Check® from Capital One and rest assured your credit score shouldn’t be impacted by the pre-approval process.
How do credit card pre-approvals work?
Credit card pre-approvals can come in many different formats, and sometimes they show up as an option when looking at cards online. When you receive a pre-approved credit card offer, it usually means your credit reports have been reviewed using criteria such as your credit history and financial information.
Most credit card pre-approvals are an example of a soft credit inquiry – they don’t often affect your credit score. They’re just a way for lenders or yourself to determine if you may qualify for a credit card offer.
What is a soft credit inquiry?
Also known as a ‘soft pull’ or ‘soft check’, soft credit inquiries occur when you check your own credit scores or when you get pre-qualified or pre-approved for a credit card.
However, the whole credit card application process is kind of backwards. Many credit card companies will let you apply for a card (and potentially damage your score) without letting you know first if you'll be approved. Quick Check lets you know before you apply (without impacting your score) which card(s) you'll be approved for.
What is a hard credit inquiry?
Also referred to as a ‘hard check’ or ‘hard pull’, hard credit inquiries are typically tied to a specific credit application–like when you apply for a credit card or auto loan.
Hard credit inquiries can decrease credit scores because credit-scoring models look at how recently, and how often, you’ve applied for credit. If you apply for many credit products in a short period of time, lenders may view this as an indication that you may be a greater risk than other borrowers.
While one or two inquiries may not cause a red flag, having several on your credit report can have a negative impact on your credit score.
What are the benefits of credit card pre-approval?
By knowing what credit card you’re likely to be approved for, you can avoid unnecessary hard inquiries that could negatively impact your credit score. With Quick Check – our free online credit card eligibility checker – you’ll know which Capital One cards you’ll be pre-approved for, so you can apply with confidence.
How to evaluate credit card pre-approval offers
Choosing the right credit card depends on a combination of your credit history, how you plan to use your credit and your own personal preference and goals.
Need a card to help build your credit with low or no annual fees? Or perhaps you’re looking for travel rewards, cash back or a card that celebrates and rewards you for payments you make towards your balance? We got you! Capital One offer cards that meet you where you're at and help you work towards your goals.
When evaluating credit card pre-approval offers, pay extra attention to the terms and conditions and try to choose an option that best fits your lifestyle and your needs.
How to increase your chances of getting pre-approved
Boosting your credit score can help you attract better pre-approved credit card offers. To increase your credit scores, and subsequently, your odds of getting pre-approved, follow these steps:
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Use credit responsibly. Build good credit by making on-time payments, staying within your credit limits and not opening too many accounts at once.
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Stay under your credit limit. Experts recommend keeping your credit utilization ratio, or the amount of available credit you’re using across all your revolving credit accounts, below 30 per cent.
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Monitor your credit activity.You don’t want inaccurate information harming your credit. If you find errors on your credit reports, dispute them with the credit bureau. Monitoring your credit with a free tool like Credit Keeper from Capital One can also help you understand what else you can do to improve your score.
While credit card pre-approvals can be confusing, they’re certainly nothing to fear. With the knowledge that these “soft” inquiries have no impact on your credit score, you’re free to explore pre-approval offers with tools like Quick Check and find the best credit card for you and your unique life circumstances.
* If Quick Check pre-approves a card, you can be sure we’ll approve your application, except in limited circumstances. Some of the reasons we may not approve your application, among others, include:
a. There’s been a change in your credit file information, personal information or financial status from the time you receive your Quick Check results to the time you apply for one of our credit cards.
b. You’re not at least the age of majority in the province or territory you live in.
c. Your application is flagged for fraud prevention.
d. You have an existing Capital One account.
e. You’ve applied for a Capital One account in the last 30 days or had an account with us that was not in good standing in the last year. In good standing means not past due, over limit, fraudulent, restricted, or part of a consumer credit counselling program or bankruptcy.
In some cases, we may not be able to open an account for you even though your application was approved. This can happen if we’re unable to verify your identity, or you don’t provide the required security funds if you’re approved for a Secured Mastercard®.