what does it mean to be prequalified for a credit card?

Answer 1

Nothing.....It's just a gimmick that they use to get your attention.

Answer 2

Basically, it doesn't mean a thing. The way prequalifiations work is this:
A cc company asks a credit bureau to give them a list of folks from their datatbase. Let's say they want people with a score of at least 600 in a certain area of the country. They might even specify 20 or 30 zip codes. If you have a score of at least 600 and you live in one of the zip codes, you'll get an offer in the mail.
You still have to fill out the form and send it back in order to actually apply. The prequalification is not a guarantee as they can turn you down after you've mailed the application back to them.
Usually, the information will state which credit bureau shared your information with them...the ones I always get in the mail say that it was TransUnion.
If you would prefer to not receive these, you can Opt Out. Basically, that means that you are requesting that your name is not shared from the credit bureaus, but your name may still be shared between other companies (including catalogues, magazines, etc.) The phone number is 1-888-567-8688.

Answer 3

Heh little or nothing at all. They claim that being
"prequalified" or "preapproved" means that a quick "soft" look at your credit report showed the bank that you have good enough credit to qualify for their card. They make it seem like it's a special invitation or something. In reality, I think they simply send them to anyone that lives within a certain radius or fits in to a very wide range of credit scores. However, this is NOT a guarantee that you'll get approved for their card, even if you maintain your credit in good standing from the time that you receive the "preapproved" offer.

I do not trust preapproved offers. I got a preapproved offer from Citizens Bank(they are HORRRRRIBLE) for a dinky $2,000 limit. So I applied(big mistake), and even though my credit was in good standing, they rejected my app completely. Then I marched into Bank of America and filled out an app from scratch that hadn't been specially sent to me or anything, and they instantly approved me for a limit multiple times higher than the limit that Citizens Bank claimed that I was "qualified" for.

The ONE advantage that I can see with prequalified credit card offers, however, is: 1) they serve as a mailed advertisement for possible cards to consider if you're looking to apply for a new credit card; 2) they give you a rough indication of your credit standing. For example, if you've recently had rock-bottom horrible credit, you will not receive any preapproved offers. If the only offers you receive are for subprime "scam artist" cards like First Premier Bank that require $250 in fees just to receive the card, that indicates that your credit isn't viewed too hot, either. This also indicates that they think you're desperate for credit and gullible enough to fall for their scam artist cards. If you start receiving offers from decent cards, like AMEX Blue or Citibank Platinum or cards with very low interest rates and/or high benefits, then you'll know that your credit is probably somewhat stable to say the least.

Answer 4

Since it is Federal Law that an applicant be 21 yrs of age to apply for a credit card you committed a Felony. You submitted a False application applying for that Student Card. Suggest you cancel the application and explain you were UNAWARE it was a student credit card.

Answer 5

It means the bank offering it to you (usually a bank you deal with) has determined that you are an acceptable credit risk. You still have to accept their terms and conditions and if they have based their decision to offer you a credit card on old financial info that is no longer correct you have to tell them so they can decide if they still want to give you one - all to do with your ability to make the repayments if you max out the card. I get letters from a certain bank offering to extend my credit limit to $22,000!!!!! All I have to do is tell them that I can meet the minimum required repayments if I max the card out. I have declined their offer.

Don't rush in and get a credit card if you don't need one. It will help though if you want to establish a credit rating with the bank for later when you want a big loan for a house or a car.

Answer 6

It means they asked for a list from the credit bureau of people that fit their qualifications that they are looking for, it does not mean you will be approved, and when it says you are pre-approved you are not always appoved either. The only way you know is when they run your credit for it and you get accepted ot denied. I wouldn't sign up for it unless you really want the card cause it will put inquiries on your credit file which does take away points

Answer 7

it simple means that they have looked at your score and determined that is was high enough. not the activity on your report they need your permission to do that so once you fill out the application then they will look more closely at you and determine if your income verses your current available credit and your pay history weather or not they will give you a card.

Answer 8

If you applied it means that you passed first checking and now they will consider it, taking all your info to consideration. For example the first time they look only at your salary, They did not pay attention to other expenses which you are required to include in the application and did not pay attention to your bank statement for example.

If you have not applied it means that they are sending this crap to everybody just to make them apply. More people apply, higher the probability that some of them are qualified for a CC.

Answer 9

I hate to pop your bubble, but it doesn't mean a thing. If you have poor credit and you apply for the "prequalified" credit card... you will STILL be turned down.

"Prequalified" is just a marketing tool.

Answer 10

its
just a trick to get you to sign up remember these cards usually have very high interest rates