The Truth About Pre-approvals... Don’t Let That Letter Play You

Let’s talk about these preapproval letters y’all keep getting in the mail. You didn’t apply for anything, but suddenly a lender is “inviting” you to apply for a credit card or personal loan. Sounds like a blessing, right?

Wrong.Most of the time, you’re not really preapproved — you’re being targeted.

Here’s what’s really happening:

Credit bureaus (yep — TransUnion, Experian, Equifax) sell your information to lenders. They create what's called a “trigger list” — meaning a company can say:

“We want consumers in the 45240 ZIP code with a credit score between 550–600, who have at least 2 collections and over $3,000 in revolving debt.”

The bureaus then pull your data, send that list to the lender, and boom — you get a letter in the mail.

But here’s what they don’t tell you: That letter means nothing unless you actually meet that lender’s approval criteria — and even then, it’s only about a 40% chance you’ll be approved.

Now let’s go deeper.Every time you apply and get denied, not only does your score take a hit, but your confidence does too.You start to believe you’re not “credit worthy.”But the truth is — you were just playing a game you didn’t know the rules to.

So how do you play it right?

• Go to the source: If you’re thinking about applying for a credit card, call your bank. Ask them:

  
  

  • What bureau do you pull from?

  • What are the score and income requirements?

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• Know before you apply: If your report isn’t in alignment, don’t shoot your shot yet. Build first.

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• Prepare on purpose: You can’t say you want better credit, a new house, or a business loan — but refuse to prepare.

Preparation is the foundation.

Don’t fall for every letter in the mail.Be informed, be intentional, and most of all — be prepared.Because in this new season, we’re not moving off hype. We’re moving off strategy.