Everyone wants to find ‘good’ customers, and as a result, customer acquisition strategies are always front of mind. One popular tool is to allow a consumer to determine if they can be “pre-qualified” for credit.

What is a prequalification?

Prequalification, or “pre-qual,” generally refers to the process by which a consumer inquires with a potential creditor to see if he/she might qualify for credit prior to the consumer committing to a full application. It allows a “sneak peek,” which enables the consumer to shop for appropriate products. Consumer reporting agencies (“CRAs”) offer specific products intended to be used to prequalify a consumer, often referred to as a “soft pull products” or “soft-pull reports.”

Originally published in the November/December issue of Non-Prime Times Magazine.