{"id":745272,"date":"2018-08-21T03:29:27","date_gmt":"2018-08-21T07:29:27","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=745272"},"modified":"2025-05-23T11:28:00","modified_gmt":"2025-05-23T15:28:00","slug":"personal-loan-pre-approval","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/personal-loans\/personal-loan-pre-approval","title":{"rendered":"How personal loan pre-approval works"},"content":{"rendered":"

Chances are you’ve heard the term pre-approval before, but it often only comes up when talking about mortgages. You might not have seen it attached to personal loans, but receiving personal loan pre-approval is a vital part of the application process.<\/p>

<\/a>What is personal loan pre-approval?<\/h3>

When you complete an application for a personal loan by providing your basic information such as your name, birth date and employment details, the lender uses this information and its own technology to determine whether it can approve you for a loan. It will usually do a soft credit check, which does not impact your score, to review your finances on a surface level. If your finances look acceptable to the lender, it will give you pre-approval. Online lenders can give fast pre-approval, sometimes within minutes of submitting your application.<\/p>

Personal loan pre-approval simply means the lender might approve you based on what it has seen so far. At this point, it can give you a quote for a pre-approved loan, but it does not mean you are guaranteed the loan.<\/p>

Keep in mind that when you apply, some lenders will only do a soft credit check to give pre-approval, but not all \u2013 some may go straight to the hard credit check, so be sure to apply selectively if you’re worried about your credit score taking a dip.<\/p>

Next step: Approval<\/h4>

If you like the lender’s loan offer, you can proceed with the rest of the application process towards official approval. At this point, the lender who did a soft credit check first will now do a hard credit check. It will verify all the information you’ve provided and do a more in-depth review of your finances. If all looks good to the lender and there are no surprises, it will give its final approval.<\/p>

<\/a>How the pre-approval process works online<\/h3>
  1. Fill out the preliminary loan application with your basic personal information. Be sure everything is accurate.<\/li>
  2. Submit your application.<\/li>
  3. Wait while the lender reviews your application. The lender may reach out to confirm your information.<\/li>
  4. Receive your pre-approval decision. Pre-approval is usually quick, sometimes within minutes of submitting your application.<\/li>
  5. Proceed with the pre-approved loan and provide more information if required. The lender may take a day or two to fully evaluate your application.<\/li>
  6. Receive official approval. Review the contract carefully.<\/li>
  7. Sign the contract and receive your funds.<\/li><\/ol>
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    \n \n \n \n \n <\/svg>\n <\/span>\n Can you be denied a personal loan after pre-approval?<\/span>\n <\/h4>\n
    \n

    Yes. Pre-approval does not guarantee a loan. It simply means that the lender has scanned your finances on a high level and is likely to approve you based on what it has seen so far. If you proceed with the application and the lender examines your finances in more detail, it may discover factors that disqualify your application. Examples could be changes in employment, changes in income, more debts or discrepancies with the information you provided.<\/p>\n <\/div>\n <\/div>\n<\/div>\n

    Are there pre-approved personal loans for bad credit?<\/h3>

    Yes, it is possible to get personal loan pre-approval with bad credit. There are many online lenders who specialize in providing personal loans to borrowers with bad credit. But as mentioned above, getting pre-approved doesn’t guarantee official approval. The lender can deny your application if it discovers information about you that doesn’t meet its lending criteria. You can increase your changes of approval by providing accurate information from the start and reviewing the lender’s eligibility requirements before applying.<\/p>

    You may also want to consider a cosigner. A cosigner is a close friend or family member who agrees to sign the loan with you. By signing the loan, they agree to cover your loan repayments if you default on them. But keep in mind that their credit score will also take a hit if you don’t make your payments.<\/p>

    <\/a>How might a pre-approved loan benefit me?<\/h3>

    You can benefit in the following ways:<\/p>