Credit Card Pre-Approval But Denied

[markwayne]

Hello

 

I recently received a pre-approval offer for a credit card, applied with confidence, and was surprised to get denied. The letter said my credit profile didn’t meet their criteria, but nothing had changed significantly since I received the offer. Has anyone else experienced this?🙃

From what I understand, pre-approvals are based on a soft pull, while the actual application involves a hard inquiry. Could it be that my report changed in the meantime, or do banks use different scoring models for pre-approvals versus final approvals?🤔

I’m trying to figure out the best way to handle this. Should I call for reconsideration, or is it better to wait and apply elsewhere? Any insights from those who’ve dealt with similar situations would be appreciated!

 

 

 

Thank you !🙂

markAzure

[MarvBear]

Welcome to CreditBoards.

[hdporter]

For the strongest advice, I suggest identifying the creditor and card product.  (Specific issuers are known to be more flexible on reconsideration.)

[shifter]

Are you sure it was a true pre-approval with the opt out language at the bottom? 

 

What do your reports look like? What would they possibly have to complain about? Another possibility is you have a derogatory history with this particular creditor and are on their blacklist. 

[Flyingifr]

On 1/29/2025 at 1:01 AM, markwayne said:

Hello

 

I recently received a pre-approval offer for a credit card, applied with confidence, and was surprised to get denied. The letter said my credit profile didn’t meet their criteria, but nothing had changed significantly since I received the offer. Has anyone else experienced this?🙃

From what I understand, pre-approvals are based on a soft pull, while the actual application involves a hard inquiry. Could it be that my report changed in the meantime, or do banks use different scoring models for pre-approvals versus final approvals?🤔

I’m trying to figure out the best way to handle this. Should I call for reconsideration, or is it better to wait and apply elsewhere? Any insights from those who’ve dealt with similar situations would be appreciated!

 

 

 

Thank you !🙂

markAzure

First - pre approvals are based on soft pulls done for marketing purposes. In that instance the card issuer gives the CRA a set of criteria that they want names and contact info on. The issuer does not actually see the credit report, just that you fit their criteria for a solicitation. When you actually apply, THEN they get to see your individual CRA file and make a final decision to grant or not, and how much to grant for.

 

Second - I am certain somewhere in the fine print of their solicitation there is the disclaimer that the issuer has the final say on whether to approve or not. You fell for the misleading implication that your credit was pre-approved, but if you read the fine print it probably says you have been pre-approved to APPLY.  That pre-approval is meaningless. Anyone can APPLY, with or without the pre-approval.

[supern8ural]

Agree with above comments.

 

- care to mention which specific card/issuer?

- depending on answer to above, calling recon may be useful

- there's a lesson in here sadly and that is even if you are invited to apply you should use the online pre-approval tools if the issuer offers them before actually applying.