Pre-qualified vs. pre-approved: What’s the difference?

“Pre-qualification” and “pre-approval” are terms that can apply to credit cards and various types of loans, including mortgages and car loans. The specific differences between the terms may vary depending on the lender and the type of loan. 

For credit cards, both terms typically mean that an initial lender review suggests you’re likely to be approved—though pre-approval can be a more extensive assessment. Keep reading to learn more about what it might mean to be pre-qualified or pre-approved for credit card offers.

What you’ll learn:

• In credit card terms, getting pre-qualified or pre-approved means you’ve met some of the lender’s requirements to be a cardholder.

• In most cases, neither pre-qualification nor pre-approval guarantees approval. 

• Pre-qualification and pre-approval don’t affect credit scores, because they both typically involve a soft inquiry. 

• Pre-approval is generally a stronger indication of potential approval for a credit card.

A pre-qualified or pre-approved credit card offer typically means you’ve met the initial criteria required to become a cardholder. But in both cases, it doesn’t necessarily guarantee approval. You still need to apply for the card to get a definite answer.

“Pre-approved” and “pre-qualified” can sometimes be used interchangeably. But some credit card issuers might have different criteria for the two. And pre-approved offers may be stronger indicators of approval. Generally, that means you can move forward to the application step with a higher degree of certainty.

In general, pre-qualification means a credit card issuer has done a basic review of your credit reports and found that you might qualify for a card. If you’re interested in the card, you can give the issuer more information, like your Social Security number (SSN) and monthly income, to help it take a closer look.

Pre-approval typically involves a prescreening by a credit card issuer. If you receive a pre-approval offer that you didn’t initiate, the card issuer may have worked with a credit bureau to target people who are likely to qualify for a certain card. The criteria for pre-approval may be more rigorous than for pre-qualification.

Pre-approval for credit cards usually involves a soft inquiry. But the type of credit check could vary by issuer.

You can typically pursue pre-approval yourself through a credit card issuer’s website. You may also receive offers by mail, phone or email.

Credit card issuers typically set some basic initial eligibility criteria for a card. Then the issuer can ask credit bureaus for a list of people who meet those criteria. From there, the issuer may send those people pre-qualified or pre-approved offers. If you’re interested in a new card, you can respond to these offers.

Credit card issuers typically consider factors related to credit history and income before pre-qualifying or pre-approving someone for a credit card. Here are a few things you can do to help improve your credit and potentially receive more offers:

• Make on-time payments on your accounts.

• Maintain a low credit utilization ratio.

• Check your credit to have a better understanding of your financial standing.

• Have a diverse mix of credit.

Keep in mind that requirements can vary by issuer and card.

With Capital One, it’s easy to find out whether you’re pre-approved for credit card offers before you accept an offer. Just answer a few simple questions about yourself and review the offers you may be eligible for. The pre-approval process is quick, and it won’t hurt your credit scores. 

Learn more about how to get pre-approved for a Capital One credit card.

If you’re interested in applying for a credit card, here’s why pre-approval can be beneficial:

• It can give you an idea of whether you’ll be approved. Pre-approval indicates you’ve already met some of the credit card issuer’s criteria. If you’re pre-approved, you can apply for a card with more confidence that you’ll be approved. 

• It won’t hurt your credit scores. Typically, credit card pre-approvals won’t impact your credit scores. That’s because pre-qualified or pre-approved credit card offers usually use soft inquiries that don’t affect your credit scores. 

• It can help you compare cards. Credit card pre-approval may give you a first glimpse of the terms and interest rates you could qualify for. This can be helpful if you’re comparing cards.

Here are the answers to a few frequently asked questions about pre-qualification and pre-approval:

Getting pre-qualified or pre-approved for a credit card can help you apply for a card with more confidence, because it means that you’ve met some initial criteria for approval with the card issuer. 

Ready to get started? See if you’re pre-approved with Capital One. Simply answer some pre-approval questions, check out your eligible offers and decide which card may be right for you, with no risk to your credit scores.

New to credit or looking for your next credit card?

• Check for pre-approval offers with no risk to your credit scores.

• Earn unlimited 1.5% cash back on every purchase, every day, with Quicksilver.

• Explore Capital One’s credit cards for building credit with responsible use.