Do you ever wish you could know if you were pre-qualified for a credit card before you apply, so you could avoid the hard pull and the hit on your credit score?
American Express has this nifty little tool that allows you to see if you’re pre-qualified for their cards, without a hard pull on your score.
This thing is sort of an internet legend. It’s been up and then pulled down several times, and every time it comes back up, the credit nerds of the world celebrate.
I like this tool because it takes some guess work out of trying to figure out what card will approve you next when you’re trying to rebuild your score.
30% of your score is what’s called credit utilization. This means how much credit use vs how much is available to you. For the best score, you want to show between 10-30% usage every month. You can get there a few ways. One is to keep your balances in that area. Another is to increase the total credit you have and not use it, and it lowers your ratios that way. This is important because you could be using your credit card every month and paying it off in full, never paying a cent of interest, but if it looks like you’re using more than 30%, it really starts to ding your score.
I am not an affiliate for any credit card companies. I don’t get a referral fee if you sign up. It seems a bit dodgy for me to be repairing credit and hawking credit cards, so I prefer not to do it. Not saying that won’t change, but it’s my current policy.
I just think it’s a good tool to have and I think AMEX is a pretty decent credit card company, as far as credit card companies go. They are the only company that if you default on a card, if you make 12 months of on time payments on a settled amount, they will open up a new card for you again. I like that they are willing to give people a second chance. I had a client one time that had done this seven or eight times over the past thirty years.
I also like AMEX because when you’re a card holder, they give you an actual FICO8 score, not some other score that no lender uses. If you missed my article on the baffling world of credit scoring, it’s right here. It’s the one thing I wish I could teach every single person about credit and scoring, because it causes so much confusion and heartache.
The tool is on this page, near the bottom.