Once you find a credit card you want, the big question is ‘will you qualify?’ Applying for new credit can have a small impact on your credit score, so understanding your approval odds before applying is useful. The key here is credit card pre-qualification. While not a guarantee of approval, it can help you see if you’re likely to qualify for a given credit card.
Let's discuss what pre-qualifying for a credit card means and how to use it to your advantage.
What does it mean to pre-qualify for a credit card?
Pre-qualifying for a credit card means that an issuer—either through information you’ve provided or by pre-screening your credit report—believes you may meet the creditworthiness standards for that credit card.
While a pre-qualification is not a binding guarantee that you’ll receive approval, it usually means that an issuer has found credit cards for which you may be a good fit. After pre-qualifying, you’ll still have to apply for the card and be approved.
3 ways to see if you pre-qualify for a credit card
You may receive pre-qualification offers or seek them out through online tools or via credit card issuers.
1. Check for pre-screened offers in your mail or email
Credit card issuers may mail or email you pre-qualification offers for certain credit cards. You may check your mail or inbox to see if you’ve received news that an issuer has pre-qualified you for a credit card.
2. Use pre-qualification tools
Some websites may offer pre-qualification tools that may help you understand if you may be likely to qualify for a credit card. These may be easy to use, offering access to quick pre-qualification decisions.
3. Go directly to the issuer
Just as many websites offer pre-qualification tools, credit card issuers, like banks, often offer their own online tools. If there’s a specific credit card issuer you’re interested in, you may be able to go directly to their website to see if you pre-qualify for any of their cards.
Credit card pre-qualification vs. pre-approval: What's the difference?
The difference between credit card pre-qualification and pre-approval will largely depend on the card issuer. While both terms refer to a method of pre-screening your potential as a credit card applicant, the exact meaning may vary.
For example, some issuers may use the term “pre-approval” to refer to a more rigorous process that looks at your tax returns and bank statements, while pre-qualification may refer to a less formal type of pre-screening that examines more basic factors, like your income and credit. Meanwhile, other issuers may use these terms interchangeably.
Credit card issuers may also use pre-approval to refer to pre-screened offers that may come to you without your input, while pre-qualification may be used to refer to the pre-screenings that you request.
No matter how the terms are used, neither pre-qualification nor pre-approval guarantees your credit card application will be approved.
Does credit card pre-qualification affect credit?
Pre-qualification typically involves soft credit inquiries, which do not impact your credit. If you end up applying for a credit card, the credit card issuer will do a hard credit inquiry, which can negatively affect your credit score for a temporary period.
How can I pre-qualify for a credit card
When it comes to pre-qualifying for a credit card, the key factor is your creditworthiness. Here are a few factors that may help you boost your pre-qualification odds:
Make payments on time
Your payment history plays an important role in determining your creditworthiness, so it’s a major factor in whether you can pre-qualify for a credit card. Building a history of consistent, on-time payments may help you pre-qualify. You may consider signing up for autopay on your existing debts to help you avoid missing payments.
Keep credit card balances low
Another important factor in determining whether you pre-qualify for a card is credit utilization, which refers to how much of your available credit you’ve used. Keeping your credit utilization low may help increase your chances of pre-qualifying.
Don't apply for too many cards at once
As a rule, it’s best to avoid applying for several credit cards at one time, as each application results in a hard credit inquiry. These inquiries can hurt your credit score temporarily, which can hurt your chances of pre-qualifying.
Consider your debt payments
Credit card issuers can also look at your debt-to-income (DTI) ratio when evaluating your creditworthiness. This can include your housing payment, such as a mortgage or rent. In general, the lower your DTI ratio, the higher your chances of pre-qualifying.
Using credit card pre-qualification to your benefit
While pre-qualification isn’t a guarantee, it can play a helpful role in researching and comparing credit cards. By checking whether you pre-qualify for credit cards before applying, you may gauge which credit cards may be a good fit while helping to preserve your credit score. Then, you can focus on fitting that credit card into your broader financial plan.
Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
