Does it mean you are ACTUALLY approved or is it just a false hope that you might get approved for whatever you are pre-approved for? I am looking at cars and want to know what 'pre-aaproved' means.
2007-01-29 02:01:11 · 11 answers · asked by Anonymous in Business & Finance ➔ Credit
You meet certain criteria for credit,BUT it does not mean you will be approved.
A credit check may disqualify you from getting a loan when you actually apply for the car loan.
Some less honest dealers may tell you that you can't obtain a regular car loan and then offer an alternative finance plan that will cost you more than you can afford (higher interest rates and a longer payoff time in exchange for a monthly payment that you can make).
Your best bet would be to go through your bank and try to save up enough for a large down payment with a trade in.
2007-01-29 02:13:06 · answer #1 · answered by Ralph T 7 · 0⤊ 0⤋
It means mostly nothing, as it is defined differently depending on who is offering the "pre-approval". If it was an unsolicited pre-approval, then it normally refers to the "leads" that a company bought from a credit bureau or lead company, that shows that you may fit certain pre-selected criteria. Such as "send me all people that have a 620 score or above."
If you have actually applied for a loan, then an underwriter can pre-approve your application based upon all the facts they have at hand and have so far verified. The strength of the pre-approval is based upon how much they actually verified and underwrote already. These usually come with certain conditions - such as pre-approved as long as... the score doesn't drop below a certain level, and they put 10% down, and up to a limit of $X.00.
Nothing is guaranteed until a final approval is issued, when all factors are in and underwritten to the lending guidelines.
2007-01-29 02:11:49 · answer #2 · answered by walkinandrockin 3 · 2⤊ 0⤋
All it means is that whoever sent you the preapproval has looked at your credit and based on what they saw, you might fit into their programs. You still have to actually apply and meet whatever their requirements are before you are actually approved.
2007-01-29 02:34:08 · answer #3 · answered by ? 7 · 1⤊ 0⤋
Pre-approves means that you r not fully approved and that you might be approved.So ya sometimes it is false hope.
2007-01-29 02:08:45 · answer #4 · answered by Anonymous · 1⤊ 0⤋
That means a lender has looked at your credit history, income, etc. and determined that you are qualified for a loan up to a certain amount. If you go shopping after you are preapproved that tells the care dealer that you are a serious buyer and not just wasting their time.
2007-01-29 02:05:23 · answer #5 · answered by HoustonTexan 3 · 0⤊ 0⤋
Pre-approved means nothing. You'll still need to apply.
2007-01-29 02:04:14 · answer #6 · answered by Anonymous · 1⤊ 0⤋
pre approved means you have been approved for financing before you go to the car dealership
2007-01-29 02:04:34 · answer #7 · answered by Anonymous · 0⤊ 1⤋
It is a ploy to get you signed up with their credit card. Yes you are approved, and they are itching to get you to sign up for the card.
I have defaulted (not paid) for other credit card charges and I still get those pre-approval notices. Evidently my bad credit record doesn't stop them from letting me sign up and get MORE CREDIT CARD DEBIT!
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2007-01-29 02:09:37 · answer #8 · answered by Mr. Right 4 · 1⤊ 0⤋
It just means that your credit fits in the parameters of that group. You still need to apply and most people get credit on that basis.
2007-01-29 02:14:23 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Just false hope. It means absolutely nothing.
2007-01-29 02:45:43 · answer #10 · answered by Anonymous · 0⤊ 1⤋