 TITLE: What Are the Benefits of a Preapproved Credit Card? CONTENT: How Do Preapproved Credit Card Offers Work?\n-------------------------------------------\nA credit card company may send you an offer by mail, email or phone noting that you've been \"preapproved\" for a credit card. This means they've pre-vetted you using what's called a soft inquiry or soft pull to check your credit. A soft inquiry won't affect your credit, but it allows lenders to see your credit score and credit history to determine whether you might qualify for a card they're offering. Receiving a preapproval letter means you've passed the first screening step.\nPreapproved credit card offers are just that—offers. They are not a guarantee that you'll be given a card, and you'll still have to complete an application to obtain full approval. If you do complete the application, the issuer must offer you the benefits and terms you received in your preapproval notice.\nKeep in mind, however, that terms such as annual percentage rate (APR) are often noted as ranges in a preapproval and are set only after you actually apply. So if the issuer offers an interest rate range of, say, 14.99% to 24.99% in your preapproval letter, your rate could end up at either end of that range depending on where your credit stands.\nYou may receive some offers that say \"prequalified\" and some that are marked \"preapproved.\" When it comes to credit cards, the terms prequalified and preapproved are often used interchangeably (unlike mortgages, which do a more stringent review for preapprovals). In either case, it means the company has done a basic review of your credit and thinks you might be a good customer. But does that mean you should apply for the card? That will depend on several factors, including whether you think the benefits are worth it. END