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rkr1

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pre-selected credit card offers
will accepting a "pre-selected" card offer result in a hard inquiry on my credit report?

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Pre-Selected and

Helpful to 5 out of 5 people

Pre-Approved,  Are not the same thing.  

Pre-Approved means that they have done a soft inquiry on you specificlly and have approved you for an account at a certain interest rate and at perticular credit limit. These vary with your credit scrore and payment  history as well as other factors.  These inquirys can actually be done months in advance so they leave themselves an out. They will do a Hard Inquiry when you apply. If your score has changed, they can deny you or change the terms,  limits or interest rates. 

Pre-Selected means they bought a list.  Some are recently approved credit customers, Some are groups such as magazine subscribers or "Google Subscribers that searched the word credit or loan".  People whose are inerested in or might want credit. Chances of approval may or may not be there.  You are part of a selected group so you were mailed an offer.  

I strongly suggest that anyone shopping for credit  ONLY accept Pre-Approved credit offers recieved in the mail, that meet your cryteria for the credit you are seeking. Of course there advantages to Applying For Credit in person as well, Generally loans and mortgages it's more appropriate.  Every offer spells out the terms, The biggest variable is the Credit Limit.  If you know your score and your history, you should know the odds that you would be approved.  

Realisticly assess where you are in your Credit life, Are you rebuilding or have a Thin File? Then accepting a Secured card or Annual Fee card with higher interest rate may be what you need to start moving your score  up,  If your score is  average (698+) or above, then you can hold out until you get that better offers, Go over the offers you receive in the mail with a fine tooth comb. Check out the terms,  If they are no better than the last card you accepted, then wait for a better offer,  As your score goes up over time, they will come.  Generally if you get one offer in the mail you will get more.  Most offer a 30-45 day window to accept. Hold on to those offers to compare with what comes in later, The first offer usually isn't the best, Hold out for better.  It's okay not to accept credit offers when your rebuilding credit. There will be more, 

A few Rules of Thumb:   Give old Hard Inquiries time to fall off your report. If you only apply once every six months, You'll always have fewer than 6 Hard inquiries. You want to eventully have 150% of your annual income in Available Credit.  Except for planned large expenses, never owe more than 1 months income on credit cards. Only apply for credit when you plan to: That 10% discount to open that store card is paid back in interest in a few months. Where is the savings?    

 FICO score of 740,   0% APR for 16 months followed by a Fixed 12% APR with $0 Annual fees 1%-3% Cash Back and a $12000. limit.   Now thats a pretty good offer...

Reply by
rkr1

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Helpful to 1 out of 1 people

Thanks EddyTX. Exactly what I was needing to know. All three agencies reporting my score in the mid 700's. With a new mortgage and a car for my daughter, I've got 8 hard inquiries. I want to up my score by increasing my available credit but don't want to lower it with too many hard inquiries. 4 different cards total 7% of available credit. Suggestions? 

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Helpful to 0 out of 1 people

Sure will

When you apply for any Credit Card it will result in a Hard Inquire.

Pre-selected, Pre-Approved, pre anything is all just words.  

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