I guess I don't understand how preapprovals work or how companies select prospective customers for preapproval. Not too long ago, I applied for 2 different BoA credit card products and both apps were turned down. Today, I get a preapproval offer from BoA in the mail (Platinum Visa) with an approval of up to $7500 or something. So I applied, totally thinking that I would be turned down again. It turns out that I was approved for a Visa with a $5000 CL. Can anyone shed any light on the preapproval process?
Pre-approval means that they contacted one of the CRA's, and gave them a listing of certain criteria, which they are looking for in applicants. The CRA runs a search of their credit files based on said criteria, and comes up with a listing of names which matches those criteria, and gives those names and addresses to the company. The company then sends out a 'firm offer of credit or insurance' (the pre-approved offer), the consumer after reviewing the offer responds if they wish to accept the offer, and as so long as between the time that they receive your name, and your application, your credit file hasn't substantially changed, chances are fairly good that your application will be approved.
