Do Inquiries for Pre-approved Offers Affect My Credit Score?

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Do Inquiries for Pre-approved Offers Affect My Credit Score?

Inquiries about pre-approved offers have no effect on your credit score unless you go ahead and apply for the credit.

If you read the tiny print on the offer, you will discover that it is not really “pre-approved.” Anyone who gets an offer must still fill out an application before credit is issued. The lender has recognized you as a promising prospect based on information in your credit report, but it is not a guarantee that you will get credit. The lender would want further information, such as your yearly income.

Pre-approved offers are frequently referred to as “prescreened” offers.

Key Takeaways

  • After a soft inquiry confirms that you are a suitable candidate for more credit, a pre-approved offer will be delivered to you.
  • If you apply for credit based on the offer, the lender may do a rigorous investigation before giving credit.
  • A soft inquiry has no bearing on your credit score.

The Two Types of Credit Inquiries

Credit inquiries into your credit score fall into two categories. Soft enquiries and hard inquiries are terms used in the company. Only a hard inquiry indicates that a lender is actively evaluating or has just extended credit to you.

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Credit Scores: Hard Vs Soft Inquiries

When a customer fills out an application that comes with a pre-approved offer, the lender may utilize the previously pulled soft inquiry to determine its decision, or it may pull a fresh report using a hard inquiry.

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Only the customer sees a soft inquiry. It has no influence on a credit score and is not visible to other lenders.

Hard Inquiries

When someone applies for a credit card or a loan, such as a mortgage or a vehicle loan, a hard inquiry is employed. It indicates that the individual is thinking about taking on more debt and has made good efforts toward doing so.

Potential lenders can see hard inquiries.

Hard inquiries may have an impact on a consumer’s credit score, but only if there are a lot of them. In any event, a hard inquiry has relatively little influence on a credit score when compared to other indicators such as a person’s bill payment history and credit usage ratio.

If you’re preparing to apply for a mortgage, for example, hard inquiries on your credit report may be an issue. The lender may wonder if you are about to incur significant extra obligations that are not represented in your credit history.

Lenders may reject a credit application if the applicant has made too many recent enquiries. This might signal that they are experiencing financial troubles or are expecting large expenses in the near future.

After two years, these hard queries are removed from a credit report. If you are unable to wait two years, one of the credit restoration organizations may be able to remove the hard inquiries sooner.

Soft Inquiries

A lender will utilize a soft inquiry when choosing whether to pre-approve a customer for a credit card. Other soft inquiries occur when a consumer’s existing lender pulls a credit report for an account review, or when a debt collector examines a credit report to see whether there has been any recent activity.

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When you check your own credit, it is recorded as a soft inquiry.

Even hard inquiries, which occur when you ask for credit, have little impact on your creditworthiness unless you have a large number of them in a short period of time.

How to Opt out of Pre-Approved Offers

If you prefer not to get pre-approved credit card offers, federal law enables you to do so for a period of five years. To do so, contact 888-5-OPT-OUT (888-567-8688) or go to You may also decline pre-approved insurance offers.

It is also possible to opt out permanently, beginning at the website mentioned above. Following your online request, you must complete, sign, and send a permanent opt-out election form.

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