What does pre-qualification for a loan mean?
In the past, only home loans providers offered pre-qualification. But nowadays, you can also pre-qualify for personal loans.
So, what is pre-qualification?
This is when a loans provider unofficially reaches out to you and offers you a loan, which simply needs a final approval before being granted. Alternatively, you can submit your details to a loan provider to determine whether you pre-qualify for a loan.
But what does it mean to pre-qualify then?
Firstly, it means that you may already have met the qualifying criteria. And secondly, it means that you may qualify for a certain loan, payment plan, or rates.
This kind of qualification is typically free, and it allows you to find out whether you can, in fact, get a personal loan. It also gives you a sneak peak into the rates you can expect to pay.
Until next time.
The MoneyShop Team
This article has been prepared for information purposes only and it does not constitute legal, financial, or medical advice. The publication, journalist, and companies or individuals providing commentary cannot be held liable in any way. Readers are advised to seek legal, financial, or medical advice where appropriate.