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. 

But for credit cards, both terms typically mean that an initial lender review suggests you’re likely to get 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 or loans.

What you’ll learn:

• For credit cards, pre-qualification and pre-approval mean a lender has done a basic review of your financial history—but getting pre-approved can be a stronger indication of approval.

• Getting pre-qualified or pre-approved for a credit card doesn’t necessarily guarantee approval.

• Pre-qualification and pre-approval for credit cards both typically involve soft inquiries, which don’t affect credit scores. 

• If you decide to apply for new credit after pre-qualification or pre-approval, a hard inquiry is typically required—which could temporarily cause credit scores to dip.

When a credit card offer mentions that you’re pre-qualified or pre-approved, it typically means you’ve met the initial criteria required to become a cardholder. But you still need to apply to get approved—neither is necessarily a guarantee of approval. 

With credit cards, pre-approved and pre-qualified may be more likely to be used interchangeably than with loans. But some credit card issuers might have different criteria for the two. Further, pre-approved offers may be stronger indicators of approval. That means you can generally move forward to the application phase 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 company personal and financial information—like your Social Security number (SSN) and monthly income—to help it take a closer look.

Keep in mind that pre-qualification isn’t a guarantee of approval. But it can give you a sense of whether you may be approved if you take the next step and apply for a card.

Pre-approval also typically involves a prescreening that’s done by a credit card issuer. The issuer may work with a credit bureau to target people who are likely to qualify for a certain card. For that reason, the criteria may be more rigorous than they are for pre-qualified offers.

Although pre-approval for mortgages and other loans may involve a hard inquiry, pre-approval for credit cards is usually a soft inquiry. But this could vary by issuer.

Credit card issuers typically look into several factors related to credit history and income. 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.

Credit card issuers typically set some basic initial eligibility criteria for a card. Then the issuer asks 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. Some pre-qualified or pre-approved offers might come to you in the mail, by phone or by email. If you’re interested in a new card, you can respond to these offers and apply to become a cardholder.

Capital One’s pre-approval tool makes it easy to find out if you’re pre-approved for card offers before you apply. Just answer a few simple questions about yourself and review the offers you may be eligible for. Pre-approval is quick, and it won’t hurt your credit scores. 

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

Want to know more? 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. One way 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.