 TITLE: What Is a Firm Offer of Credit and Why Does It Matter? CONTENT: Prequalified vs. Preapproved\n----------------------------\nGetting prequalified and preapproved are two different processes, one initiated by you and the other initiated by a lender.\n**Prequalification** is when you (the consumer) agree to provide your credit information to a lender as you shop for credit offers, such as a credit card or loan. Prequalification does not require a firm offer of credit.\n**Preapproval** is when a lender \"prescreens\" you and independently determines whether you meet their requirements for credit. If you do, the lender will send you a preapproved offer. If you decide you want to formally apply for and accept the loan or credit card from the lender, the terms must match the original offer—this is the firm offer of credit.\nFor a preapproval, lenders use a behind-the-scenes prescreening process to determine if they would like to extend a credit offer based on your credit profile, whether you are an existing customer, where you live and other factors. Lenders also determine what kinds of credit offers, such as a cash back credit card or low interest credit card, may be most appealing to you. All of these offers are governed by the Fair Credit Reporting Act (FCRA).\n> Find the best credit cards in Experian CreditMatch™. END