Does the Shopping Cart Trick Still Work?
Explore the evolution of credit card pre-approvals, from historical methods to modern practices, and how lenders assess eligibility today.
The shopping cart trick refers to a method individuals used to receive pre-approved credit card offers from online retailers. This approach aimed to secure a credit offer without initiating a hard credit inquiry. Understanding how credit pre-approvals function provides insight into such methods.
Understanding the Shopping Cart Method
The shopping cart trick typically began with adding items to an online retail shopping cart. Consumers would then proceed to the checkout page, but without completing the purchase. The goal was to trigger a pop-up or banner indicating a pre-approved credit card offer from the retailer. This method was primarily associated with store-branded credit cards, often those issued by specific financial institutions like Comenity Bank.
The trick aimed to obtain a credit offer based on a soft inquiry, which would not negatively affect the consumer’s credit score. Individuals hoped to gauge their approval odds for a store credit card before submitting a formal application that would result in a hard inquiry.
Information Involved in Pre-Approval Offers
Lenders utilize specific data points to extend pre-approved credit offers. This process involves a “soft inquiry,” also known as a soft pull. A soft inquiry differs significantly from a “hard inquiry” because it does not impact an individual’s credit score. Hard inquiries, in contrast, occur when a consumer formally applies for new credit, such as a mortgage, auto loan, or new credit card, and can temporarily lower credit scores.
During a soft inquiry, lenders access basic information from a consumer’s credit report to assess creditworthiness. This can include credit score ranges, existing open accounts, payment history, and public records. This information helps lenders identify individuals who match the profile for a particular credit product without requiring explicit permission.
Modern Credit Pre-Approval Practices
Credit card pre-approvals are now commonly handled through various established channels. Consumers frequently receive pre-approved offers via direct mail solicitations, where card issuers send invitations based on pre-screening processes. Many financial institutions also provide online pre-qualification tools, allowing individuals to check for offers without affecting their credit score. These tools typically involve a soft inquiry, providing a quick assessment of potential eligibility.
Existing bank customers may receive targeted offers from their current financial providers, as these institutions already possess extensive data on their financial behavior. Lenders leverage data analysis to identify and extend pre-approved offers to specific consumer segments. These modern approaches generally rely on soft inquiries to determine eligibility before a formal application. This process allows consumers to understand their likelihood of approval for a credit product.