Trick: a cunning or skillful act or scheme intended to deceive
This topic is consistently the talk of the town...
*What is the SCT?
*Will this result in a hard or soft pull?
*Is this legal?
So let's talk about this "trick" for a minute. First things first, it isn't a "trick", despite the name it's been given. It's simply a way to obtain a retail card, offered by Comenity Bank. As you're shopping online, a pre-approval pop up will appear as you finish entering your shipping info. This will give you the opportunity to apply for, and receive a credit card offered by the specific store you're shopping with.
Note: You do NOT have to actually purchase the merchandise once approved.
This process is very beneficial for those who have not so good credit, are looking to rebuild, and otherwise wouldn't be approved if they applied using the standard method. Another plus WAS that it did not result in a hard pull......well THAT HAS RECENTLY CHANGED!
Once approved, you will not only see the new account listed on your credit report, but you will now also see a new inquiry reported. This will result in a slight drop in your scores, but they will bounce back rather quickly as long as you have other positive, active lines of credit that you're utilizing appropriately.
Regarding the legality of this process.....YES...it's perfectly legal. This bank has decided to extend pre-approved credit card offers to consumers. Nothing more, nothing less. Nothing "tricky" about it.
Now be careful...you don't want to apply for too many at once (2-3 is sufficient)...and keep in mind, the idea is to build and increase your overall credit line…Not SPEND like CRAZY ;-)
For more information about this process click HERE