How often should you check for preapproved credit card offers?
Quick insights
- Preapproved credit card offers can be a useful tool for exploring potential credit opportunities without impacting your credit score.
- There is no right answer on how often you should check for preapproved offers, but if you are looking for credit, it can be a good idea to look for them.
- Each time you submit an official credit card application, it results in a hard inquiry, which can impact your credit score.
Understanding preapproved credit card offers
Preapproved credit card offers are offers from credit card issuers that indicate you meet their initial criteria for a specific card. These offers are based on a soft inquiry into your credit history. While hard inquiries can impact your credit score, soft inquiries do not. It's important to note that preapproved offers are not guaranteed approvals. Once you apply, the credit card issuer will conduct a hard inquiry into your credit history to make a final decision.
Preapproved offers can provide a glimpse into potential credit opportunities without the risk of a hard check, which can temporarily lower your credit score and stay on your credit report for up to two years. When evaluating preapproved offers, you might consider factors such as the annual percentage rate (APR), any potential annual fees, the rewards structure and any additional benefits or features. Always read the fine print to understand the terms and conditions before applying.
How often should you check for preapproved offers?
There's no hard and fast rule for how often you should check for preapproved offers. However, regularly checking for preapproved offers can help you stay aware of potential credit opportunities.
As opposed to preapproved offers, each time you submit a formal application for a credit card, a lender performs a hard credit check, which can impact your credit score. In this case, it can be important to apply sparingly and strategically.
Where to find preapproved offers
There are a few ways to check your preapproved offers. Preapproved offers can often be found on credit card issuer websites, in your email inbox if you've opted into financial offers or through direct mail.
It’s important to check that any preapproved offer you receive, especially via email, is from a legitimate source to avoid falling victim to phishing emails and other scams.
How to respond to preapproved credit card offers
If you receive a preapproved credit card offer, consider taking the following steps:
- Read/get informed: Read up on the card and consider factors such as the annual percentage rate (APR), potential annual fees, the rewards structure and any additional benefits or features. Always read the fine print of any credit card offer to understand the terms and conditions before applying.
- Apply: If you’re interested in the card, you can apply for it. Preapproved offers indicate that you've passed an initial credit screening, so they often come with a higher likelihood of approval compared to cold applications.
- If denied: If you're denied a preapproved card, it might be a good idea to work towards improving areas that are negatively impacting your credit before applying for another card.
The bottom line
Preapproved credit card offers can provide a glimpse into potential credit opportunities without impacting your credit score. Regularly checking these offers and carefully evaluating each one can help you find a credit card that fits your needs. Once you've been approved for a card, remember to use it responsibly. Healthy financial habits such as making payments on time and keeping your balance low can help build a strong credit history and unlock credit opportunities in the future.
