What is prequalification?
Prequalification: Prequalification is a preliminary review in which a lender estimates what it may offer you, usually based on a soft credit inquiry and information you provide.
Prequalification is not a final approval or a commitment to lend. The lender reviews your full application, verifies your information and makes its own decision before offering final terms.
Because prequalification usually uses a soft inquiry, checking with several lenders this way does not affect your credit score.
When you compare offers
Treat prequalified terms as estimates. The final APR, amount and term can change after the lender reviews your full application.
Related guides
- Prequalification: Soft vs. Hard Credit Pulls
What a soft credit pull is, how it differs from a hard inquiry, and why checking offers through a marketplace like Lendara may not affect your credit score.
- What to Check Before Comparing Personal Loan Offers
A checklist of what to have ready before comparing personal loan offers, plus how prequalifying with Lendara is designed to use a soft pull.
This glossary is for general educational purposes and isn't financial, legal or insurance advice. Lendara is not a lender and does not make credit decisions. Lendara is a free online marketplace that connects you with participating lenders and providers, who set their own eligibility rules, rates, fees and terms. Lendara may receive compensation from partners, which may affect which offers appear and their order.