Getting an offer for a preapproved credit card does not mean you are cleared to go on a shopping spree. What it really means is that the financial institution (FI) sending you the proposition has determined you could be a good candidate for one of their credit cards. This determination is based on the information in your credit report. If you decide you’d like to take advantage of the offer, you must still apply and be approved for the line of credit. The possibility exists that you may not be approved for the line of card after you’ve provided more information to the FI, such as your yearly income. For this reason, preapproved offers can also be referred to as “prescreened” offers.
No. Preapproved/prescreened offers do not impact your credit score. This is because FIs run a “soft” credit inquiry in order to decide if you’re a good prospect for one of their cards. Cyprus’ blog from this past Thursday explains the difference between “soft” and “hard” credit inquiries. Click here to learn more.