- 1 Pre-Approved Credit Cards And Bad Credit6411643
- 2 pre approved offers
- 3 Pre-Approved Credit Card Offers Are Utter Nonsense
- 4 How to Get Pre-Approved for a Mortgage
Pre-Approved Credit Cards And Bad Credit6411643
Virtually every time you guaranteed car finance visit your mail box, there it's another letter saying you're pre-approved. Should it is taken by you? Have you been really pre-approved? Or could it be just only the conventional spam? Well, it may be the above. They've quite a good concept of your credit rating, before many businesses send a letter to you through the postal service.
Generally speaking, you've completed some kind previously, was rejected maybe, if not authorized, and the organization has understanding of this. Ergo, the supply for pre-approved charge cards begin coming. You might still be eligible for these pre-approved credit cards, even when you've significantly less than ideal credit. The pre-approved credit cards provide you with get is determined by your credit. These offers might be secured or unsecured.
It's probably your pre-approved credit cards is going to be guaranteed, when you yourself have poor credit. This can mean to be able to have any kind of credit line you've to pay for a deposit. More over, your credit line won't ever be much more than your deposit volume. The quantities you are able to deposit is going to be said in your pre-approved charge cards provide, usually between $250 and $1,500. These pre-approved charge cards may have little to number benefits and high rates of interest to talk about.
If you've good to master credit, your pre-approved credit card offers is going to be unprotected, meaning no deposit is usually required and you might take advantage of a broad number of returns, good attention subjects, and benefits.
In either case you get, instead you've good or poor credit; you can still get offers for pre-approved charge cards from creditors. For all those with poor credit, you've the chance to focus on repairing your credit and increasing your credit score with the secured pre-approved credit cards.
Before you take any pre-approved offers, you browse the company, its status, and make sure it a valid offer, from the company make sure. Never offer up your individual data without first looking at the qualifications of the organization, otherwise you can go in to a bogus offer.
pre approved offers
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Pre-Approved Credit Card Offers Are Utter Nonsense
So you got a letter in the mail saying you were “pre-approved for a credit card.” Or an e-mail inviting you to apply for the latest credit card.
You jump at the chance to get approved for a credit card and apply immediately assuming you’ll be given the thumbs up in a matter of seconds. But after filling out the online application form you see the dreaded “Thanks, we’ll let you know…” page.
What went wrong? After all, you were pre-approved and “invited,” so there’s no reason you shouldn’t be instantly approved, right?
Why do they need more time? They already said you were approved so what gives?
Pre-Approved Does Not Equal Approved
Well, the truth is, pre-approved does not mean approved. Otherwise it would just say approved wouldn’t it?
What credit card issuers mean by “pre-approved” is that based on the information they have at the time of sending you the invitation, you should be approved for their credit card.
Unfortunately, the information they have may not be all-encompassing or totally current, especially depending on when they got the info and when you subsequently apply.
A credit score (and credit report) is a moving target that can change from day to day based on all sorts of stuff.
Once you apply for the credit card in question, the card issuer will still pull your credit and it will result in a hard inquiry.
From there they’ll be able to see if you still have the excellent credit they were expecting you to have, or the excellent credit you had when they bought your info from the credit reporting bureaus.
If you don’t for any reason, you might not actually get approved. You’re still pre-approved though…if that’s any consolation…it’s not, I just felt like being cheeky.
Well, there are a number of things that can happen between the time credit card issuers get your info and you apply for one of their offers.
Perhaps you missed a credit card payment or ran up a bunch of debt. Or, maybe you applied for too many credit cards in a short span of time. That new 5/24 rule from Chase is a perfect example of how pre-approved can be utter nonsense.
I will use my own personal story to illustrate. I recently applied for the Chase Sapphire Preferred after receiving an e-mail from Chase inviting me to apply.
I knew I had opened 5+ credit cards in the past 24 months, so I assumed I’d get rejected. But I wanted to test it just to be sure. I don’t really care about the inquiry. My credit scores are just fine.
Unsurprisingly, I was rejected. I got that annoying screen saying they’d let me know, and an equally annoying e-mail from Chase thanking me for submitting an application. Way to let me down easy…
Ultimately I knew my application was DOA because of their new rule regarding too many accounts opened in recent history.
To test the rule even further, I went to a Chase branch and spoke to a banker I know fairly well there. She tried to push my application through using a special consideration form .
This form basically highlights your other accounts with Chase in hope of garnering approval as an existing, valued customer.
I knew it was a shot in the dark and it did turn out to be a waste of time, other than creating content for this post. I essentially got rejected a second time in-person and was put on the phone with a Chase rep who wanted to tell me so a third time.
I asked why I was rejected (I knew, but I still love to ask) and was told I had opened too many accounts. I prodded further, asking how many was too many.
There was a moment of silence, then the rep asked if he could put me on hold. I said something to the effect of, “Why do you need to put me on hold? How many is too many?”
He hesitated, then reluctantly (but quickly) told me five was probably the magic number. I already knew this, but it’s always nice to hear it uttered.
I followed with something like, “But you guys sent me an e-mail telling me to apply.” And he said something like, “Yes, but we didn’t know the contents of your credit report. And now that we do, we can’t approve your application.”
So there you have it folks. Even if you are “pre-approved” you may well get rejected. Don’t be surprised if you do.
To avoid such surprises, check your credit report before applying (you can do this for free now using services like Credit Karma or Credit Sesame).
I believe in August a couple of credit cards will be older than 24 months and I should get approved for Chase Sapphire Preferred. Looking forward to trying again…
Colin created this blog after spending several years in a job that required him to scour credit reports on a daily basis. His goal is to help individuals better understand their credit and get the most out of credit cards. View all posts by Colin Robertson
How to Get Pre-Approved for a Mortgage
In this article:
When you are pre-approved for a mortgage, it means a lender has determined how much you can borrow, the loan programs that you may qualify for, as well as the interest rate you qualify for. This assessment is based on things like credit score, income, debts, and employment history.
You’ll generally get a written statement from a lender stating this information, which can be used to give sellers confidence that you’ll be approved for a loan after they accept your offer. Most pre-approval letters are good for 60 to 90 days.
How Do You Find a Lender to Get Pre-Approved?
Zillow has an online tool you can use to find a local lender in minutes who can help you get pre-approved. The lender will conduct a preliminary review to determine your loan qualifications based on their guidelines.
Does Pre-Approval Guarantee a Loan?
No. Even if you receive a pre-approval letter from a lender you connected with on Zillow, you may not get a loan from a lender and you are not guaranteed a specific rate or loan term. Regardless of pre-approval, a lender may require additional income and asset verification, as well as the satisfaction of other conditions, before extending you a loan. Pre-approval letters are subject to modification or cancellation if your financial situation or other conditions change. A pre-approval letter is not an offer to lend, a commitment to make a loan, or a guarantee of specific rates or terms. It is is not an application for credit. Also, having a pre-approval letter does not guarantee that an offer you make on a home will be accepted by a seller.
Get pre-approved and see how much you can afford
There are many reasons why you should get pre-approved. The most important reason is that you will get an accurate idea of how much home you can afford. This can help to target your home search and ensure you only look at houses that are truly in your price range. A pre-approval letter also helps you prove to real estate agents and sellers that you’re a credible buyer and able to act fast when you find the home you want to buy. Some sellers might even require buyers to submit a pre-approval letter with their offers, though having a pre-approval letter does not guarantee that your offer will be accepted by a seller. A pre-approval letter can make you stand out in a competitive real estate market. If you make an offer on a house without a pre-approval, your offer may not be taken as seriously as an offer from another person with a pre-approval.
What Details Are Required in the Pre-Approval Process?
A lender will generally start by asking for some basic information about you and your financial history. If you have a co-borrower, the lender will also need this information about them. Generally, a lender will then request your Social Security number and permission to pull your required credit report (and your co-borrower’s, if you have one). If the information you provide and the information obtained from your credit report satisfies the lender’s guidelines, the lender will make a preliminary determination in writing stating that you would qualify for a particular loan amount subject to the conditions outlined in your pre-approval letter. Please note that each lender has its own standards and processes for determining whether to grant a pre-approval letter.
Not everyone will get pre-approved for a mortgage, but there are a few things you can do to get better prepared for the financial responsibility of homeownership:
- Work to improve your credit score. Your credit score is impacted by payment history, outstanding debt, the length of your credit history, recent new credit inquiries, types of credit used, and more. Generally a score of 720 and higher will get you the most favorable mortgage rates.
- Correct any errors on your credit report, which could help to raise your credit score. The lender will analyze your credit report for any red flags, such as late or missed payments or charged-off debt. Even if you are deemed to have bad credit, there are ways to still get pre-approved for a mortgage.
- Decrease your overall debt and improve your debt-to-income ratio. In general, a debt-to-income ratio of 36 percent or less is preferable; 43 percent is the maximum ratio allowed. Use our debt-to-income calculator to determine your debt-to-income ratio.
- Increase your down payment amount in order to qualify for a larger loan. Learn more about down payments.
Be sure to ask your lender for tips on how you can improve your chances of qualifying for a loan.