100% Pre-approved, how realistic is this?

sleepyjones

I was looking at the MSE Credit Card checker thing last night, with no real intention of getting another credit card, I was just bored and curious ... it came up that I'm 100% pre-approved for a card.

I'm trying to build my credit history, having never really had much credit before so I don't want to go ahead and apply for it if it will negatively affect my image to future creditors since I don't really need it, but having another card that I can use will help to build my history ... is the 100% figure accurate?, I can't imagine there'd be any fraud or ID check fails so I would assume that I should get the card (If I applied) or is that number just another imaginary number used to lure you in to applying?

I'm dubious about anything where people are paid a commission to get you to apply for stuff.

EDIT : Just spotted this similar post

pingtech

It's answered in the FAQ's

I'm pre-approved. What does that mean?

Some lenders may be happy to pre-approve you for certain credit cards. This pre-approval is based on the information you supply on the eligibility calculator form, your credit report data obtained through the soft search, and (if you have a banking relationship with that lender) information they already hold on you.

When you click through to the lender to apply, you’ll see a normal credit card application page, which’ll say you’re pre-approved, and then you will fill in the form like any normal application.

If you do apply for the card, your lender will still make a hard search footprint on your credit report, even if you’re pre-approved. This is to report to the credit reference agencies that you have made a credit application, and also to check your identity and that you're not a fraudster. They’re just not using that hard search to credit check you, as you’re already approved.

It’s worth noting that pre-approval is not a cast-iron guarantee that you’ll get the card. In exceptional circumstances you could be declined for other reasons – you may fail the identity and fraud checks, for example.

Plus, not all lenders can pre-approve you for cards, so it’s worth looking through your full eligibility results to see if there’s a card that better fits your needs that you’ve a strong chance of getting.

pingtech

As for not wishing to pay MSE commission, please see the link at the bottom of this page "How this site is financed"

So how does MSE generate revenue?

Companies cannot pay to appear on the site. Guides are written purely from a 'what's the best way to save money?' stance. Once the guides are finished, it's the commercial team's job to see if they can find 'affiliate links' to the top products.

These look and work in the same way as normal links, but if someone clicks through, the link is tracked and may generate a payment to the site. The details vary – sometimes the payment's per click, per user, per application, per accepted application or any combination.

Also, certain links in the forum posted by users have a software called Skimlinks added. This simply tracks the link to MSE. These look and work in the same way as normal links. If someone clicks through, the link is tracked and it may generate a payment to the site (see Skimlinks factsheet for more details).


We only use affiliate links that give you an identical (or better) deal than going direct. However, as these are technologically generated, issues can happen, so please let us know if you spot any.

...

We want you to know when links are affiliated...

Unlike many sites that use affiliate links, from the very first time we used them we were always deliberate about including an * after every one (and we're pleased to see a few other sites starting to adopt this).

This is so you know which links contribute to the main site and which don't, so you can make your own decision. We hope you will choose the ones that help pay for the huge resource the main site offers.

Occasionally, this means you'll go to one of the comparison services' landing pages to get the product. However, the product itself will be the same – or possibly even better – and you shouldn't notice a difference in any way.

In other words, if there's a link to Supertelephonecompany because it's the cheapest provider, and has an *, you'll go through directly and the main site may get some money. If it doesn't have an * you'll go through directly and it won't make money. That's the only difference.

Wherever we include an * link, there's a full explanation at the bottom of the page and an unaffiliated version of the same link, so you can check there's no difference.

sleepyjones

Yeah, I get all that ... but I wouldn't anticipate any problems with fraud or ID checks.

It seems a bit mis-leading to say you are 100% pre-approved if really, you're not. Why would they not just say 90% chance (subject to final checks) or something like that?, 'cause they want to sucker you into applying so they can get their commission?

I'm just trying to understand the logic of this if it isn't just a way to get people to apply and balance up the pros and cons of applying.

Would the benefits of having another Credit Card (I only have one, used almost every day, paid in full every month) outweigh the negatives of having a hard search on my file?

I'm not desperate for a new card, just trying to build a history.

(I know how commission works, and I'm not against it ... MoneySuperMarket didn't buy MSE for £87 million 'cause they don't make any money)

Actually, nevermind, It's not worth the risk and I don't need it anyway, 100% is just a bit misleading in my opinion.

[Deleted User]

One search will have no impact on a well managed file, whereas a number of properly used cards will build a strong history.

There's no comparison.

YorkshireBoy

sleepyjones wrote: »

Would the benefits of having another Credit Card (I only have one, used almost every day, paid in full every month) outweigh the negatives of having a hard search on my file?

Yes, unless you're imminently about to apply for a mortgage or other important lending product.

Going forward, be sure to even out the spend on both cards.


EDIT: Wish I'd read this first!...

Actually, nevermind, It's not worth the risk and I don't need it anyway

sleepyjones

YorkshireBoy wrote: »

EDIT: Wish I'd read this first!...

Sorry, YorkshireBoy ... I haven't really decided I wasn't going to bother, I was kinda just getting a bit fed up and irritated so I threw my toys out the pram

If the benefits of having the card (accepted application) outweigh the negatives of having a search (failed application) then I don't really have much to lose (thanks ZX), and I do have a supposed high chance of getting it then I probably will just apply for it, I don't have any plans to make any future applications for anything (maybe car finance but not until around this time next year when my current one ends ... but even then, probably not).

I was more interested in the number, it's like the mythical Credit Score ... is it just a made up number generated to get you to buy/apply for products so commission can be earned.

[Deleted User]

You’re “pre-approved” subject to full and final checks.

sleepyjones

Application : Referred :rotfl: :rotfl:

Ben8282

1. A single hard search is no big deal and not a problem.
2. A third party cannot 100% guarantee acceptance. For that you would need to use the providers own eligibility checker. Do they have one and did you?