What to do after you’ve been preapproved for a credit card
Quick insights
- Being preapproved for a credit card may be a positive step towards getting a credit card, but it doesn’t guarantee that your credit card application will be approved.
- Before applying for a preapproved credit card, it can be helpful to consider factors such as the card's interest rate, fees and rewards program.
- While waiting for preapproval, it's generally advisable to avoid applying for other credit cards. Credit card applications can lead to a hard credit check on your credit report, which can impact your credit score.
Preapproved credit card offers can give you a better idea of what cards you may qualify for and help you find a card that suits your needs. But what are the next steps you might want to take after preapproval? Let’s review in more detail below.
How to move forward with a credit card application after preapproval
Before applying for a credit card that you’ve been preapproved for, it can be a good idea to consider the card's interest rate, annual fee, benefits and rewards program to help make sure it aligns with your financial needs and spending habits. You may want to consider your current financial situation, including your income and existing debt, to help you determine if and how you can manage the new credit card responsibly. You might also want to check your credit report for any errors or discrepancies that could affect your final approval.If you’ve done these things and still want to apply, you might be ready to move forward with an application.
What to do if you want to apply for a preapproved credit card
If you've received a preapproval offer and want to apply, there are a few steps you might want to follow:
- Review: A first step may be to carefully review the terms and conditions of the credit card.
- Apply: You can typically apply for the card online, over the phone or by mail, depending on the options provided by the credit card issuer.
- Wait: After applying, you'll usually receive a decision within a few minutes to a few weeks, depending on the issuer and the application method you chose.
- Receive: If approved, you may receive your credit card and the financial agreement in the mail, usually within 7-10 business days.
Can you apply for another credit card while waiting for preapproval?
While you can apply for another credit card while waiting for preapproval, it's generally not advisable; each application can result in a hard inquiry on your credit report, which may temporarily lower your credit score. Multiple applications in a short period might signal to lenders that you're a high-risk borrower, potentially reducing your chances of approval.
This is all to say that it's usually best to wait and see if you’ve been preapproved before applying for a different credit card.
How long do I have to respond to a preapproval offer?
Preapproval offers typically come with an expiration date, which is usually stated in the offer. This can range from 30-90 days, depending on the credit card issuer. It's generally recommended to apply for the card within this timeframe if you're interested in the offer. Waiting too long could result in the offer expiring, and you might not get the same terms if you apply after the expiration date.
However, it's also important not to rush the decision. Take the time to review the offer, consider your finances and compare other credit cards. If you miss the preapproval offer's expiration date, you can still apply for the card, but you'll likely have to go through the standard application process without the benefit of preapproval.
When can you get preapproved again?
If you do not move forward by applying for a credit card after receiving a preapproval offer, or if your application following a preapproval is not successful, you might wonder when you can expect another preapproval offer. Typically, you might start receiving new preapproval offers within six months to a year, depending on the credit card issuer's policies and your credit activity.
During this time, it may be a good idea to work on improving your credit score and financial situation to potentially help improve your chances of getting approved for a credit card. This can include paying your bills on time, reducing your debt and avoiding new credit applications.
The bottom line
Being preapproved for a credit card can be a positive step, but it's important to make informed decisions before officially applying for the card. This includes understanding the terms of the credit card, considering your financial situation and avoiding multiple applications in a short period. With careful consideration and responsible use, a credit card can be a valuable financial tool for building credit.
