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Demystifying The Concept Ofa Pre-Approved Loan Offer
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  • January 31, 2024

Demystifying The Concept Of A Pre-Approved Loan Offer

You can borrow money for any reason and loans are one of the common ways of borrowing. Various featuresmight pop out when you search for a particular loan. Pre-approved facilities might be one among them and can raise your curiosity levels.

This is actually a lending provision wherein the loan provider conducts a soft check to decide the kind of offer you should get. This is incomplete without assessing your financial standing according to the eligibility criteria. This is a great alternative if you are struggling to get approval from mainstream lenders.

Therefore, a pre-approved loan offer is a feature of direct lending and you can make the most out of it. You can go to any extent and think of getting car loans in Ireland by taking advantage of it. A pre-approved offer does not need commitment from you upfront.

Rather, it is an opportunity for you to validate if the offer is worth considering or not. Since many lenders have come up with this unique facility, you can draw a comparison of a bunch of pre-approved deals.

The best thing about it is that you can finally say ‘yes’ to an offer thathas suitable terms and conditions for you. However, it does not certify a positive decision from the lender’s end. You get a chance to understand the mindset of the lender. Dig deeper to know more about it.

Everything to understand about pre-approved loan offer

Pre-approval allows the lender to assess your affordability without leaving any impact on your credit history.This is an additional benefit that has been arranged through direct lending. You can enquire about a loan proposal to evaluate whether these loans are what you need the most.

The surprising thing about this particular feature is that you can approach multiple lenders for pre-approved loan offers. Your credit history will not suffer any impact even when you receive numerous loan proposals.

Insider’s guide on the working procedure of pre-approved loans

With a pre-approval facility, you have the liberty to deny continuing further with the lender. You can take stock of what is happening with your application at every point. The lender should be keeping you in the loop. Take a look at how the process takes place.

1. Refer to the suitable amount of loan

To begin, you must understand the extent of your borrowing. It would be foolish to request a random amount based on assumption as the practical scenario might be different. Dig through the requirements you are facing to figure out how much you should take out.

One of the determinants in deciding the loan amount is interest rates. You can use an online tool to acknowledge the price you have to pay for this desired amount of loan. The biggest realisation should be that the chosen amount coincides with your necessities or else a pre-approved offer cannot even help you.

2. Watch out for the best offer

For this step, you can take the help of comparison sites or you can research on your own at the same time. This will need you to review the lender’s website to work out the loan amount and its suitable terms and rates. Maybe, this approach could be time-consuming as you have to check all the websites individually.

On the other hand, comparison sites can minimise your legwork but they might not be as reliable as your own research. However, if you want to save time and effort, you can talk to a broker about getting personal loans in Ireland. Their knowledge about the lending market is vast and you cannot compete with that.

Besides, they are connected with a wide network of lenders. Their assistance might help you an ideal lender in the least possible time.

3. Confront soft credit checks

Pre-approval is all about getting a quotation from the lender and not signing the dotted lines of the loan fine print. Nevertheless, the lender would like to confirm your affordability. This is possible only by conducting a soft assessment of your recent financial transactions.

You might mistake a soft analysis of your financial background with hard checks but they are different. These checks do not cause any damage to your credit scores. Above all, this assessment does not reveal your credit history as it only reflects your present financial condition.

4. Receive notification from the lender

At this point, you must expect a notification from the loan provider. Before that, you must fill out the online form with relevant details. Otherwise, the lender might not be able to contact you.

The bottom line

Based on the pre-approval offer, you can decide whether you should agree with this particular loan provider. Following this, you can think of receiving money provided the lender approves your request.


  • What is the likelihood of getting a pre-approved loan offer?

If your credentials match with the requirements of the loan provider, you have a fair chance of getting a pre-approved loan offer. Make sure to produce correct and complete information so that the lender does not get a reason to deny offering a pre-approval facility. However, 100% assurance is not possible as your circumstances will also be responsible for altering the decision of the lender.

  • Is there any difference between pre-approved and approved?

The pre-approved loan offer means the lender gives out a free quote mentioned with the loan terms and rates. Accepting it does not certify that you have accepted the loan agreement. Therefore, if you want to go ahead with the offer, you can accept it or else you can opt-out at any time. The loan provider will carry out a few basic checks that will not tarnish your credit history. You cannot get access to the loan amount after pre-approval but it is possible after approval.

  • What if you realise you no longer need loans after pre-approval?

There will be no compulsion on you to keep loans even if there is no purpose for it. Pre-approved offer is to help you get a glimpse of the actual offer. There is no question of receiving any money after confirmation of pre-approval. You and even the lender has every right to discontinue midway without facing any obligations.

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