Subscribe To Our Blog

Email Updates
To sign up for updates or to access your subscriber preferences, please enter your contact information below.

Friday, May 21, 2010

What Does “Pre-Approval” Mean?

Your questions answered.

I just received a pre-approved credit card. What does a pre-approved credit card mean?

Generally, "pre-approved" means that a preliminary review of your credit record by the card company indicates that you may meet the criteria it seeks in a borrower.

But wait! Don’t go off spending that $5,000 pre-approved limit just yet!

You are not guaranteed to receive the card or rates listed in the promotion
It is important to know that you are not guaranteed to receive a card -- or the credit limit… or the interest rate… or any other terms featured in the promotion.

You will have to apply and meet criteria that the card company has established. Sometimes people are denied simply because their credit score has changed between the time they were pre-approved and applied for the card.

Your credit score and history are, generally, what determines whether you get the card… and the credit limit… and the interest rate… and all other terms for the card.

To obtain a free credit report and for more information about your credit score, remember the only Federal Trade Commission approved site to get your true free credit report is

More information
The Federal Reserve has developed a consumer’s guide to credit cards. Check it out at