Why Pre-Approved Credit Offers Are a Myth
Way back when, in the dark days of my credit past, the postal service would frequently back a dump truck to my house and unload several metric tons of pre-approved credit card offers on my doorstep. Their snazzy, can’t-miss ad copy printed in a dazzling array of retina-burning Day-Glo ink was all too alluring: “$100,000 Line of Credit with 0% APR for Eternity”? Where do I sign up?
But, like the saying goes: “If it looks too good to be true, it probably is.” I’ll let you in on one of the credit industry’s (many) dirty little secrets: pre-approved credit card offers a myth. Bogus. Impossible.
The reason? Credit issuers can’t pull your complete credit report (also known in industry slang as a “hard pull”) without your express permission. They therefore rely on “soft pulls” which provide them with little more than your name, social security number, address and maybe your employer and favorite color. Soft pulls reveal nothing about your debt, past credit history or anything at all for that matter about your current financial situation.
How then, you might ask, is it possible for credit issuers to pre-approve you without knowing a darn thing about your financial health? It’s not. It’s a marketing ploy like any other: throw enough baited hooks in the water and someone is bound to bite. Fortunately for the lenders, this tactic works for a whole lot of unsuspecting someones. I’m still astounded by how many folks are gamed into believing that, with their 525 FICO score, they allegedly qualify for a 0.9% interest rate!
What’s worse is that every one of those pre-approved applications you mail back leaves a black mark on your credit report that announces to other prospective lenders that you’re in the market for [gulp] an even bigger line of credit. Tally up enough of these black marks, and you can seriously damage your credit score.
So the next time you’re thinking of accepting that “One Time Promotional Super Secret Squirrel For-Your-Eyes Only” credit offer that seems too good to be true, be sure to read the fine print. It also pays to be aware of your credit history and FICO score, to understand your current financial health and, above all else, to opt out of those darn pre-screened credit offers in the first place.
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Those pre-approved credit offers are terrific! First off those little cardboard fake credit cards they send you are perfect for tassel making, winding embroidery thread, building card houses, mounting fishing flies and a host of other uses! Second, the envelope and stuffing only need a quick run through the paper shredder and voila! free cat litter!
I’m not quite sure why the nice credit card companies want to send me free cat litter - surely they don’t think I’m gonna actually sign up - but as long as they do I and my kitties will appreciate it.
Ya think they’d like me to send them a used sample just to show how much we appreciate it?
P L - Definitely! Make sure you take a photo and send it in to us first though!!
I read in the fine print somewhere that “preapproved” only means preapproved for the opportunity to apply for the great deal, not preapproved to actually receive the great deal.
I got one from a credit card company where I had had an account before a finanical meltdown of sorts, so I sent it in, and they rejected me based on my past history with that company. Seems like they were rather wasting their postage sending offers to someone they already know they weren’t going to accept.
My husband just got one, and I went online to check out the company, and the general offer being made to anyone who applied online was better than the one being offered to him speciifically.