Pre-qualification is a nifty way to determine your various options before choosing one loan offer. It also gives you a better idea of your financial position without resorting to a hard credit pull.<\/p>\n
Most lenders will request you to submit your basic details like name, annual income, monthly expenses, vehicle type, valuation, and registration number to pre-qualify for a car loan. It’s always best to shop around and compare a few pre-qualified offers before applying for your preferred one. This helps you be better informed and avoid high APRs and monthly payments in the long run.<\/p>\n
Based on the soft credit pull, the lender will give you a tentative loan offer with an estimated APR. However, keep in mind that this is subject to change later in the process. You will still have to apply formally and undergo a hard credit check and financial vetting before a final offer is made.<\/p>\n
You should apply for pre-qualification when you have no idea about which lender to choose, what APR is good for you, and what you can afford. You should choose pre-approval when you have already decided to buy or refinance a car.<\/p>\n","protected":false},"excerpt":{"rendered":"