Using the names and addresses of possible applicants, the bank then sends a mass mailing. “If you own a Harley-Davidson motorcycle, chances are you are going to get a Harley-Davidson® Visa® Secured Card* offer.” “If you belong to AARP, chances are you are going to get a Chase AARP Visa* offer,” says Shahani. Tip: The Credit CARD Act of 2009 bans lenders from sending prescreened credit card offers to anyone under 21 unless they’ve opted in with credit reporting agencies.Īlong with information found in your credit reports, issuers may use public information like age range, location, educational and professional background, ownership of other assets, group memberships and business relationships to select candidates for prescreened credit card offers. “So, while a credit card vendor might require you to at a minimum be a homeowner with a 740 credit score and $60,000 annual income for one of its top tier credit card offers, the same vendor may also have a card that’s available to renters with a 580 credit score and an $18,000 minimum annual gross income.” “Every credit card vendor maintains its own criteria for various card offerings,” says Lee Kendrick of CreditUturn. Prescreened offers aren’t limited to cardholders with good credit, however. “And then they’ll say that within the ‘760-plus,’ there might be additional criteria that we want to overlay.” “The issuer will reach out to the bureau of their choice … and say that we want to make sure that we’re extending credit to folks who are ‘760-plus’ for this particular product,” says Shahani, using an excellent credit requirement as an example. Alternatively, they may provide a list of potential customers to the bureaus and have them identify those who meet the qualification criteria. To come up with a targeted list of potential cardholders, issuers will typically set their own qualification criteria – such as a minimum credit score or income – and ask credit bureaus for a list of borrowers who meet those requirements. How do prescreened credit card offers work? Prescreened offers typically come in the mail, but you may also get one via phone call or email. Under the federal Fair Credit Reporting Act, anyone who receives an unsolicited credit card offer based on prescreening is receiving a “firm offer of credit.” This means that unless your credit profile changes drastically between the time the issuer extends the offer and the time you apply, you should be approved (though not necessarily for the interest rate and credit line shown in the offer). “Basically, the issuer has done a background check on you and decided you are an ideal applicant,” says Anuj Shahani, vice president at Comperemedia, which tracks direct marketing offers. When you receive a prescreened credit card offer, it means that the information in your credit report meets the initial approval criteria set by the issuer. Prescreening allows issuers to aim card offers at specific consumers based on their credit score, borrowing history and other personal information. Prescreened credit card offers are targeted solicitations that issuers use to invite qualified customers to apply for a new card. See related: What to look for in a credit card What is a prescreened credit card offer? The next time you come across a glossy flyer congratulating you on being preapproved for a new credit card, take a closer look: It may be a prescreened card offer, and if you’re interested, you have a high likelihood of being approved.īut where do these offers come from, what do they mean and why are you getting them?
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