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Applying does NOT affect your FICO® credit score!

PRE-APPROVED LOANS

When you are applying for a loan, you want to make sure that your application is approved. What many people don’t know is that there are several types of approvals. A pre-approval is a clever way of helping you know exactly how much you qualify to borrow. If you don’t know where you can get pre-approved loans, let Nation21 help you get the most appropriate loans.

Applying does NOT affect

your FICO® credit score!


What are pre-approved loans?

These are the types of loans that a lender offers to customers by first reviewing the credit scores, as well as other characteristics in a bid to determine what amount and terms they qualify to get. Getting pre-approved implies that you are going to have a clear picture of the maximum amount a certain lender is willing to give you as well as the APR and other fees. Basically, pre-approved loans come with a clever way of finding out if you are going to receive the money you need and if the terms match your expectations.

Getting pre-approved doesn’t mean that you are obligated to take the loan. Instead, it helps you get more informed and at the same time attain some significant level of bargaining power. If you are able to get an offer that is more attractive from another lender, you are at liberty to grab it. At the same time, a lender has no obligation of giving you a loan that they have pre-approved you.

But if the process was thoroughly conducted, you should be able to secure the loan without any difficulty.


The Advantages and Disadvantages of Personal Loans Pre-Approved

As with all loan products, personal loans pre-approved have their merits and demerits.

Why should you get preapproved?

A preapproval will allow you to know how much a lender is willing to let you borrow. The advantage of working with a lender as opposed to getting the number from online calculators is that a lender will take a more personal approach and they may help you in pointing out something that an online calculator might overlook.

Applying does NOT affect

your FICO® credit score!

The moment you are in the know-how of the appropriate amount lenders are willing to give you, you will focus on looking for a lender who can give you the best offer based on what you can afford to pay. In addition, it will help you to lock out attractive offers that may end up ruining your financial profile because they are too expensive for you.

Getting a clear picture of the costs involved with the loan you intend to take is very important. In most cases, borrowers will display attractive rates in their campaigns but this doesn’t mean everyone will qualify to get that rate. But when your loan has been pre-approved, you will know exactly how much you will pay.  Most pre-approved loans will help you avoid getting carried away by the low-interest rates adverts.


The Difference between Prequalification and Preapproval

Most people see the two terms as one and the same thing but there are huge differences between them. Basically, prequalification is the initial step when you are contemplating taking a long-term loan like a mortgage. The process is simple and it can be done without most of your personal details. What’s required is your rough financial picture and the lender can give you an estimate of loans that you might want to look at. However, all this happens without taking a look at your credit profile or a thorough analysis of your propensity to service the loan.

In most instances, the process will only involve the information that you have shared with your lender. Therefore, it is inconclusive because the lender hasn’t looked at the bigger picture.

Pre-approved loans, on the other hand, are more intensive and the lender will combine the information that you give him with what he can find from third-party sources about your financial history. All this is done to make sure the quote you receive is realistic. To ensure your application is accepted, make sure you have fulfilled the following.

  • Submit the appropriate data to validate your income
  • Make sure your credit scores are not damaged
  • Ensure you haven’t made multiple credit inquiries recently
  • Maintain your current job for several months

What to Keep In Mind When Dealing With Preapprovals

Most personal loan preapprovals are merely marketing stunts employed by lenders who are seeking to expand their business. As such, when a lender has given you a preapproval it doesn’t mean that they have guaranteed your access to the loan amount and terms in question. Basically, you will have to undergo another approval process which is much more serious than the shallow preapproval process.

If you don’t make it through the approval process, it is likely that the same lender who preapproved your loan won’t be able to give you the money. To make sure you don’t get disappointed, compare several application processes employed by various lenders so that you can choose the one with higher chances of success.

Applying does NOT affect

your FICO® credit score!


Do you have any further questions?