Like many other financial institutions, Citibank (a Forbes Advisor partner) may preapprove you for a credit card. Even if an offer is not made to you, you could still pre-qualify to see what credit cards you may be approved for. While Citi preapproval and pre-qualification can be convenient, neither term guarantees approval and some people may not understand the differences.
Admittedly, the terms “preapproved” and “pre-qualified” are very similar. Both of them are used to attract new customers. The difference comes down to which party initiated things.
Does Citibank Have Preapproval?
Citibank offers preapproval on some of its credit cards to select consumers. If you’re offered preapproval, that means you conditionally meet the approval criteria for the credit card when you formally apply. These preapprovals can come via email, regular mail or even through the mail. Keep in mind that these preapprovals are often a limited-time offer to entice you to sign up.
Since everyone has a different credit profile, not everyone will get preapproved. Generally speaking, if you have a good credit score, no delinquent payments or bankruptcies and a stable income, Citibank may preapprove you.
Citibank typically has two methods when seeking out individuals that meet its preapproval conditions. First, it will look at its own customers. If those customers meet certain criteria, a preapproval may be sent. Alternatively, if Citibank is looking to attract new customers, it could request a list of individuals that meet certain requirements from one of the three major credit reporting bureaus.
Even though Citibank is checking your credit profile during the preapproval process, there’s no hit to your credit score since this is a soft inquiry only. However, if you accept the preapproval, a hard inquiry will be done. This will lower your credit score a bit, but it’s one final check to ensure nothing has changed with your credit profile since you were initially pre-approved.
How To See if I’m Pre-Qualified for a Citi Card
Pre-qualification for credit cards is done by the consumer. Not every financial institution offers a pre-qualification process, but Citibank does.
The pre-qualification process for Citi is easy. First, go to Citi’s pre-screen page. From there, you need to enter the following information:
- Your name
- Email address
- Last four digits of your Social Security number
- Home address
Once you’ve entered that information, you can select your product preference from a list which includes:
- Rewards
- Balance transfer
- Low intro APR
- Cash back
- No preference
Finally, you’ll need to authorize Citi to obtain your credit report. Within a few minutes, you’ll get a list of Citi credit cards that you’re pre-qualified for. This process does not affect your credit score in a negative way. However, similar to the preapproval process, if you decide to formally apply for one of the cards that you’ve been pre-qualified for, a hard inquiry will be performed.
What Is Needed for Pre-Approval With Citibank
While there’s no public information available about what exactly is needed to get pre-approved for a Citi credit card, you’ll need to meet the following minimum requirements:
- You must be at least 18 years old
- You must have a Social Security number. Some Citi credit cards will accept an ITIN along with your passport.
- Your personal information must match what’s listed with the credit bureaus
- You have a good credit score (usually 700-plus)
It’s worth noting that some credit cards also have a personal or household income requirement. These numbers aren’t typically published, but financial institutions can set their own minimum standards.
Even if you meet all of the requirements above, you may not automatically be preapproved. That’s because preapproval happens when Citi is proactively looking for new business. If you’re not an existing customer, or your information isn’t available through one of the credit reporting bureaus, you may not get preapproved.
If you’re still interested in a Citibank credit card, but don’t want a hard inquiry on your credit profile unless you’re approved, you may want to try a pre-qualification first.
What’s Better: Citi Preapproval or Pre-Qualification?
Technically speaking, getting preapproval from Citi is better than pre-qualification since you’ll know that you are already conditionally approved. This can be handy if you were already thinking about applying for a Citi credit card or if there’s a generous welcome offer that comes with the preapproval.
That said, preapproval is usually for specific cards. If you were to go the pre-qualification route, it would allow you to see multiple cards that you would likely be approved for. Based on that list, you could then decide which card is best for you.
Financial institutions like to tempt consumers with preapprovals, but going the pre-qualification route could be better since it gives you more options.
Pros of Preapproved and Pre-Qualified Offers
- Financial institutions may give you a targeted incentive, such as an increased welcome bonus, when accepting a preapproval.
- You may also potentially lock in better rates, lower annual fees and other options that are not normally publicly offered.
Cons of Preapproved and Pre-Qualified Offers
- The product you’re being preapproved for by Citi may have little value to you.
- Accepting every preapproval may encourage you to spend more since you’ll have more access to credit.
What To Do if I’m Not Preapproved or Pre-Qualified for a Citi Credit Card
If you’re not preapproved or pre-qualified for a specific Citi credit card, don’t panic. Citi may be missing some information, so calling in or heading to a branch may help your approval process. However, if you haven’t been preapproved or pre-qualified due to your credit profile, you may want to focus on improving your credit score first.
Citi offers the Citi® Secured Mastercard®* that helps you build your credit history. In general, secured credit cards require a security deposit. This amount would serve as your credit limit. As you make everyday purchases and pay your bills on time, your credit history would be reported to the credit bureaus. This would slowly increase your credit score. Once your credit score is in good standing, you could see what credit cards you pre-qualify for.
Read More: What is a Secured Credit Card and How Does it Work?
Tips To Improve Your Chances of Citi Preapproval
Besides getting a secured credit card, there are a few ways to improve your chances of getting preapproved for a Citi credit card, including:
- Reduce your debt load
- Pay your bills on time
- Avoid applying for new credit, including loans
- Limit the amount of credit you’re using
- Monitor your credit report
Essentially, you want to try your best to keep your credit score in good standing since it can have a major impact on the preapproval process. A credit score of 740 and up is considered very good and is a goal to strive for.
Bottom Line
Citi preapproval and pre-qualification processes are pretty straightforward. When Citi preapproves you, it’s doing so for a specific product. However, if you opt to pre-qualify yourself, you’ll have access to more cards. Regardless of what you’re offered, keep in mind that there may be better offers out there. Be sure to review any promotions you receive in detail and only formally apply for the card if it’s something that will help you reach your financial goals.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
