Claire and Kevin from Newsweek's personal finance team delve into the often-confused terms of credit card preapproval and prequalification. They explore how these processes work without impacting your credit score, offering a clear distinction between the two. Preapproval is typically a more targeted approach by issuers, suggesting a higher likelihood of approval, whereas prequalification allows consumers to initiate checks on their eligibility for various credit cards. Both processes involve soft credit inquiries that do not affect credit scores but are crucial steps before applying, which requires a hard credit inquiry potentially affecting the score. The article also addresses ways to opt out of unsolicited prescreened offers from credit issuers, ensuring readers can manage their financial solicitation preferences effectively.
Read the full article here.