Prequalification for credit cards is a major factor in the process of getting approved. A prequalification letter is the letter of authorization that accompanies an application to obtain credit. A copy of this letter must be sent along with a complete set of fingerprints, court documents and verification to the credit reporting agencies. There are many different credit card companies out there who will perform this task for a fee or they will directly do it for you. If you want to speed up the process then prequalification is critical.
The amount you will pay for a prequalification does depend on the type of credit score you have. Typically it is around $75, and some companies will give you more than others. When using an online service to prequalify for credit cards, it’s important to make sure that it is free. Many of these services are not free but rather charge for the service they provide.
To be successful in obtaining a prequalification letter, you must ensure you have the appropriate information available to complete the request. You need the full name, social security number, current address, employment history and what you plan to use the credit cards for. You may also be asked for an explanation of why you prequalify for the credit card. If you have never been offered a credit card in the past then this is vital information.
When you find a prequalified credit card offer make sure you are not required to accept the deal right away. This could be for a hard inquiry or for a limited time period. Normally companies that prequalify will give you around two weeks to decide whether to accept the deal or not. If you decide not to go with the deal then you can always try another company. Many people make the mistake of accepting a card only to find out later that you cannot qualify for it. A hard inquiry means you are being sent for a credit check, but if the offer you were looking at was for a limited time period this should not affect your decision making process.
It’s important to keep track of your credit report if you are working to get prequalification for a credit card. A hard inquiry will show up on your credit report as an inquiry. The date it shows up will determine if it is allowed to stay on your credit report. If it stays on your credit report for over seven days you will have to notify the credit reporting agency and they will remove the hard inquiry from your credit report. They will also ask you why you were inquiring and then contact you with the reasons for the hard inquiry.
There are other reasons why you can get prequalification for credit cards, some of them include a deposit of between five hundred and one thousand dollars. Some companies will ask if you have an active checking account as well. Another way to get prequalification for a credit card is to fill out an application for a credit card that is given to you by a friend or family member. If you do this, you must be careful to read the terms of the application as you could end up with a hard inquiry on your credit report. If you use your hard inquiry to improve your credit score, you may be able to borrow more money than you could before.
In order to see your credit report, you will need to order one each year from the three credit reporting agencies. The information on your credit report may change each year as the credit reporting agencies update their records. The information from your report will help decide if you qualify for prequalification credit cards. If you get prequalified credit cards, it means the credit card company has agreed to let you have access to their credit line. Once you have accessed the line you can make purchases using your new credit line.
The prequalification process varies between the different credit companies. To find out what is required in your case you will need to contact the company you are applying to. You can also request a copy of your credit score from any of the three bureaus. Make sure you compare all three scores because they are not the same thing. The only thing they have in common is your credit score. Once you have access to your credit limit, you are more likely to make a purchase and increase your credit score.