 TITLE: How to Prequalify for a Credit Card CONTENT: How Prequalifying for a Credit Card Works\n-----------------------------------------\nCredit card issuers looking to grow their number of cardholders often go straight to potential customers by prescreening credit reports en masse and sending out offers of credit to those who meet the qualification criteria. Prescreening is done with the help of credit bureaus, which compile a list upon request based on specific factors credit card issuers are searching for. The credit card issuer then sends a _preapproval_ offer to the consumers on that list.\n_Prequalifying_ for a card typically works a little differently (though some issuers use the two terms interchangeably). If you are in the market for a new credit card, you can seek out a credit card issuer yourself to request prequalification. To do so, you'll go to the card issuer's website and offer some basic information, after which you'll be shown a list of offers you could be approved for. Not all issuers offer prequalification, however, so you may not find this option depending on which card you're seeking.\nIn either case, both preapproved and prequalified credit card offers come with several advantages:\n*   Preapproval results in a soft credit inquiry, which does not impact your credit score. Prequalification, offered online by American Express and other card issuers, shouldn't reduce your credit scores either. If you decide to apply for the card, a hard inquiry will be generated and potentially shave a few points off your credit score.\n*   If you're preapproved or prequalified for a card, and your creditworthiness hasn't drastically changed since the prescreening process, your approval odds are generally good.\n*   They make it easier to compare credit card options that you're most likely to qualify for.\nBut remember: A prequalified credit card offer is not a firm offer credit. It's an invitation to apply. You could still get denied for the card if you submit a formal application and don't meet the card issuer's minimum qualification criteria for other factors not reviewed during prescreening, including income, employment status or monthly housing payment. END