Could someone help me better understand these credit terms?

Deal Score0

what’s the difference between “pre-approved” and pre-selected, preferred pre-approved, pre-qualified and selected ? Status.

Dose this have something to do with your credit score or history or both?

And if it has anything to do with my credit score moving above 700 what happens when I get a inquiry or two and it drops to under 700 do I go back to being just pre-approved?

3 Comments
  1. Reply
    SPIFIMAN1
    July 17, 2011 at 7:11 pm

    There is no difference.

    The credit bureaus sell potential customer list to all kinds of marketing companies based on how long they have been in the bureaus, how many lines of credit they have and what their scores are.

    If someone actually answers one of these they still have to apply for whatever the offer is for.

  2. Reply
    aristazibal
    July 17, 2011 at 8:04 pm

    Marketing is the difference, I’m pretty sure.

    The bottom line is if someone is trying to get you to sign up, you’re pre-approved – either they have credit history on you so they know they’re willing to lend to you, or they’re willing to lend to anybody, so they’re willing to lend to you.

    No matter how many fancy terms you attach to it, that’s pretty much what it’s all about.

  3. Reply
    anon
    July 17, 2011 at 8:34 pm

    “Soft” inquiries do not generally affect your credit rating. Soft inquires are usually done by banks and finance companies doing a “sweep” of people who they may want to send mailings to. A number of “hard” inquiries will affect your score. “Hard” inquiries have to be authorized by you and are generally used by credit companies to actually check your entire credit history and/or credit score if you have applied for an apartment lease, mortgage, car loan, or even to have utilities hooked up.

    All the “pre-approved” lingo us just b/s. Different companies have different terminology… it is all just to get you to apply for their credit card or whatever else.

    The best thing is to do a Google search for an “opt out” program. You can add your name to a list of people who do not want to receive credit solicitations.

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