What Is The Difference Between Pre-authorization And Authorization Of A Credit Card?


5 Answers

John Nawrocki Profile
John Nawrocki answered
Pre-authorization usually puts a hold on the amount pre-authorized. If the rental company preauthorizes 500.00, that money, while not yet officially charged to your account, can reduce your open to buy and possibly exceed your credit limit. Embarrassing if you are with clients and trying to charge dinner.
thanked the writer.
Anonymous commented
Another answer is related to receiving pre authorized credit card offers. In this case a company has very basic information on you but NOT your credit report and they call you 'are authorized' as a lead-tag to temp you to apply for credit, at which time they will actually run your credit report and say yeah or nay.
Anonymous Profile
Anonymous answered
Pre-authorization on a credit card is simply the merchant's way of determining whether you have enough of a credit available to purchase something. For example, a car rental company may "pre-authorize" 500.00 on the card you present to make sure you are not over your credit limit, and when you return the rental, they can get an authorization to charge your card. When you return the car, the exact amount is put on the card, say 250.00, the merchant is authorized to charge your card 250.00.
I hope this is what you mean by authorized / pre-authorized.
Ken Hickman Profile
Ken Hickman answered
Pre-authorization really means nothing, it means your on a mailing list and they want you yo apply for the card,anybody can be pre-authorized even if you have the worst credit in the world,you still have to apply filling out your info, and then they run a credit check if your good, then you are approved for the card.
Michael Regenauer Profile
Pre authorization means your credit report and your credit score
has been scanned by a robot which determined the credit card
co. Can send you a mail application or an email asking you to fill
out an application. The easiest way is online. You will get an answer in seconds. Be careful you don't apply too often as this
will lower your credit score. It will look like to lenders as tho
you are shopping for credit as a way to get out of debt.
Aisha Profile
Aisha answered
Pre authorization is when there is a follow up going on for the credit card authentication and the card holder's address. The authorization is when it is all done and accepted by the bank and you are authorized to use it.

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