- 1 pre approved store credit
- 2 Way to get pre-approved store credit cards no credit check and rebuild credit
- 3 How to Get Pre-Approved Credit Card Offers
- 4 Instant Approval Store Credit Cards
pre approved store credit
sgb2/L6 Credit and Credit Cards.pdf·
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Way to get pre-approved store credit cards no credit check and rebuild credit
Chadwicks of Boston
Crate and Barrel
Goody's Family Clothing
Lerner New York
New York & Company
The Company Store
Since these are preapprovals by soft inquiries, your credit report does not get hit with a hard inquiry, therefore your credit score is not affected and other creditors do not see soft inquiries, only hard inquiries.
If you are rebuilding, you may want to add positive accounts now so that 6 months, a year or two down the road these accounts have aged and helped improve your scores.
These lines would help your credit mix and add to your total credit line. They may be small at first, so to help your score you could either pay in full each bill or only use a small amount. Yes, keep in mind I have heard 35% of your credit line used is ok, but 10% utilization is golden to your FICO scores.
Let’s say you have a $500 credit limit. If you use 35% of that, it is $175 the most you can use. 10% of $500 would be $50, the most you could use.
If you are rebuilding and do not see a preapproval offer, I would not apply for the credit b/c then you will have a hard inquiry and we all know hard inquiries do hurt your score, especially after 5 in the last 6 months.
These companies normally give out credit line increases in 9 months provided you have a good credit limit, etc. at the time. I haven’t had mine that long to say if it is true.
You want to build credit so that lenders can see an excellent credit history. Getting cards and charging them up to the max can hurt your score really bad.
How to Get Pre-Approved Credit Card Offers
People do not write personal letters as they did in the past. Opening your mailbox is not as fun anymore. Now, all we get are bills and untargeted direct mail. Getting pre-approved credit card offers in the mail is actually exciting by comparison! The offers open a world of opportunity – if you get them.
Which prompts people to wonder how to receive pre-approved credit card offers in the mail. People with moderate risk profiles get most preapproved offers. There are three reasons why this is true.
- Demonstrate that you will not cause losses
- Show that you will generate revenues
- Indicate that you will respond
Preapproved Card Offers for Moderate Risks
The first factor in getting more pre-approved credit card offers in the mail is maintaining a moderate risk profile. Your generic risk score should be good but does not have to be great.
Banks will not send offers to people who are likely to borrow money and never pay it back. People with low-risk scores and delinquent histories are far more likely to become seriously delinquent, or default on new loans.
View Your Credit Score and Report. Unlimited Access. Just $9.95/Month with TransUnion! Examine your consumer report, and look for soft inquiries that you did not initiate. If you do not have an existing relationship, then they probably indicate you met a bank’s prescreening criteria. They must make a firm offer of credit to you.
It costs banks money to send offers in the mail. There is the cost of paper, envelopes, printing, and postage. Banks will always check your consumer report prior to approving you for any loan. The preapproval process works by applying the banks underwriting criteria to your consumer report before sending out the offers.
The banks weed out people with poor histories at the consumer-reporting agency. The bank saves money by not mailing offers to people they know they will never approve for a loan.
Preapproved Card Offers for Revenue Generators
The second factor in receiving more preapproved credit card offers in the mail is showing that you will generate revenues. The banks are in business to generate profits by lending money.
They earn profits when their lending revenues exceed customer acquisition costs and loan losses. Credit card lending revenues come from three primary sources: interest charges, interchange fees, and late fees.
Banks send preapproved credit cards offers to likely revolvers. Customers who revolve their balance pay interest, and generate revenues for the bank. However, the consumer reporting agencies cannot distinguish between revolvers and transactional users. Transactional users pay the balance in full every month and pay no interest. The banks simply report the balance and the account limit at the end of every billing cycle.
Banks utilize revenue models to predict which prospective cardholders are most likely to revolve a balance, and pay interest. Those tending to score highest on these models are people with large card balances and high utilization ratios. Keep in mind these factors tend to suppress your risk score. That is the second reason why people with moderate risk scores get the most preapproved offers.
The banks also earn revenues every time an account holder charges a purchase. The merchant pays an interchange fee that is split between the company approving the transaction, the card association (Visa, MasterCard, etc.), and the issuing bank. People, who charge more on their card, generate higher interchange revenues.
Once again, the consumer reporting agencies cannot determine the level of spending on cards. They have visibility to only the balance at the end of the billing period, and the limit.
People who are active members of frequent traveler programs tend to charge more on their cards. Travelers often use their cards to book flights, hotels, and rental cards. Rewards members with high utilization tend to receive more preapproved credit card offers in the mail because of the projected spending.
Late fees are the third way that banks generate revenues. A prospective customer who is occasionally thirty days late may generate late fee revenues while still having a low risk of charge off.
Frequent travelers often exhibit this behavior, as bill paying is more difficult while on the road. A person with a history of being thirty days late, but never worse, may receive more offers. Of course, this only holds if their risk scores stay in the moderate range.
Likely Responders Get More Preapproved Offers
Response rates for preapproved credit card offers are very low. The average mailing yields a response rate of about one percent. That means that ninety-nine percent of the offers are wasted. The banks paid for envelopes, paper, printing, and postage, and ninety-nine percent of the investment yielded nothing.
Banks rely heavily on response models to predict which population segments will respond best to certain offers, and increase the number of responders per thousand mailed. They target those segments most likely to respond, provided they meet the risk criteria as well. The same consumer reporting agency data used to weed out people with poor risk profiles are also used to as input to the response scores.
People with very good or excellent risk profiles rarely respond to offers for new loans. They tend to rank at the bottom of the response model scores. Most banks will mail offers to people in the top twenty percent of the response scores.
The factors driving top response scores are the number of inquiries, the number of newly opened accounts, total revolving balances, and utilization percentages. These factors also tend to lower risk scores, which is the third reason why people with moderate risk profiles receive more preapproved credit card offers in the mail.
Direct mail responsiveness it the final factor determining who get preapproved credit card offers. Many consumers like getting offers in the mail, and respond regularly. Others dislike the offers, toss them immediately in the trash, and may opt out of direct mail altogether. Banks want to market through channels that prospects prefer.
Many data mining companies compile direct mail responsiveness profiles for individuals and households. For example, people who regularly order from print catalogs are tagged as direct mail responsive. These data sometimes use as input into response models.
There you have it; four ways to receive more preapproved credit card offers in the mail!
Instant Approval Store Credit Cards
Credit cards from department stores and specialty retailers commonly offer instant approval. They want you to buy, buy, buy — today if possible, which means many of these are instant credit cards offering immediate use:
- Fingerhut – Long-running catalog/online store is known for its instant credit. “Apply Today, Buy Today” is one message you’ll find on their site. Offers everything from electronics to furniture to clothing and jewelry in its catalog.
- Amazon.com Rewards Visa – “The majority of applications are responded to in less than 60 seconds.” If you are approved for instant credit, you’ll immediately start getting a 3% rebate on Amazon.com purchases, plus a 2% rebate on gas, restaurant and drug store purchases, and a 1% rebate on everything else. (5% back on Amazon purchases if you are a paid Prime member.) Rebates awarded as points toward cash back, gift cards, or credit toward Amazon.com purchases.
- Amazon.com Store Card – This instant approval card (“decision in as little as 15 seconds”) is only accepted at Amazon, and its selling point is that it offers you special 0% financing on larger Amazon purchases. Note that if you are an Amazon Prime customer, you can also upgrade the card after approval and then get 5% off all Amazon purchases.
- Apple Rewards Visa – Finance your Apple product purchases with this instant credit card that will usually give you an answer “in as little as 30 seconds” on your application. Get that instant approval and you can immediately use it on your Apple store purchases.
- Belk Credit Card – Department store credit card offers the chance at instant approval and 15% to 20% off your purchases on the day you opn the card and are approved.
- Best Buy Credit Card – Major electronics and appliance superstore offers a number of Visa and store-only cards you can get approved for instantly — and use online today. Offers a rewards program and/or special financing on your purchases.
- Cabela’s Visa – Outdoor store offers a credit card that earns you points in the Cabela’s Club loyalty rewards program. May approve you instantly but note that you will have to wait for the card to arrive by mail before you can actually start using it.
- GAP Credit Card – This instant approval card is actually good at the other GAP family stores, too — Old Navy, Banana Republic, and Athleta. Offers a rewards program that gives $5 in rewards for every 500 points you earn, and you’ll get 20% off your first purchase with the card.
- Home Depot Credit Card – Home improvement store credit card changes the language on its application often, but not long ago we saw the message “receive an immediate response – get instant credit if you qualify!” Offers 0% financing on certain large purchases and low interest financing on others. The everyday interest rate could be as high as 26.99%, though, so be careful.
- JCPenney Credit Card – Major department store chain offers instant approval and immediate use — you’ll even get 15% off your first online order when accepted, and you can pair that with other discounts or coupons you may have.
- Kohl’s Charge – Offers instant approval to those who qualify; some applications may take longer to approve or reject. If you are approved today, you can take 25% off your first purchase with the card.
- L.L. Bean Visa – If you apply for this outdoor store card today and are instantly approved, you’ll get 15% off today’s purchases. Earn 3% rewards on L.L. Bean purchases and 1% in rewards on all other card purchases. Every time you reach $10 in rewards, you get a $10 L.L. Bean rewards coupon.
- Macy’s Credit Card – Department store credit card offers instant approval and instant usage — in fact, you’ll get 20% off most purchases on the day you are approved and the next day, too. Offers a Macy’s store-only credit card online; you can apply for a Macy’s American Express card in store.
- Neiman Marcus Credit Card – High-end store card offers instant approval and the ability to use the card today. In fact, you’ll get 5,000 bonus points (worth $50 in future purchases) if you are instantly approved and use the card to make a purchase today.
- Nordstrom Credit Card – If approved, you can “start shopping right away” with the Nordstrom Visa or retail store credit card. If you spend at least $100 with the card the day you are approved, you’ll get a bonus $20 Note (gift certificate) toward a future Nordstrom purchase.
- Overstock MasterCard – “Apply. Be Approved. Use your card in as little as 60 seconds.” This online store’s credit card gives you a $40 statement credit after you are approved and use the card for the first time, and you can earn ongoing Overstock rewards anywhere MasterCard is accepted.
- TJX Rewards Credit Cards – Store credit card of TJ Maxx, Marshalls, HomeGoods, and Sierra Trading Post encourages you to “open an account today.” You’ll earn rewards on all card purchases. Note that you could be approved for a TJX MasterCard (accepted anywhere MasterCard is accepted) or a TJX store card (accepted only at TJX stores).
- Ulta Beauty Credit Card – You may be instantly approved for this credit card, but you can only use it inside an Ulta store (not online) until you’ve actually received the physical credit card in the mail.
- Walmart Credit Cards – Get approved instantly for a Walmart MasterCard or store-only credit card and you’ll get a $25 discount on any purchases you make today, as long as you spend at least $75.
Fingerhut – “Apply Today, Buy Today” if you are instantly approved for the credit card from this famous catalog retailer. Fingerhut is “here to give you credit to help you buy what you need.”