What does it mean to have a pre-approved credit? We tell you what you should know

A pre-approved loan is an operation in which financial institutions believe you can apply. It is an instrument that the bank wishes to use for its clients who have a good record and ability to pay. In the case of a pre-approved credit, unlike other financial instruments, it is not the client who requests it. It is the bank that informs the client that it has pre-approved financing and it can manage its approval at any time.

To process a pre-approved credit, it is not necessary to enter numerous requirements, since the institution already has the client’s data. Once you accept the credit, the bank will do the risk analysis to comply with final laws and formalities. Let’s see in detail what a pre-approved credit implies, what you can use it for and what you should take into account before accepting it.

Main characteristics of a pre-approved credit

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As we already mentioned, perhaps the main characteristic of pre-approved credit is that, in principle, it is not you who requests it, but the bank who offers it. However, it is important to clarify that the fact that it is pre-approved does not mean that the result of the request will be satisfactory.

The financial institution reaches the client having gone through different analysis filters. In this evaluation, the bank studies the credit history and verifies that there is financial capacity to fulfill the commitment. In this way, the bank offers the financing, and if the client accepts the offer, the institution carries out the pertinent procedures to see if it finally approves it. So it’s important that you don’t confuse pre-approved with approved.

What to buy with a pre-approved credit?

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As it is a consumer credit, you can use the money for whatever you want. Usually, people use this type of instrument to purchase furniture, home repairs, travel, and to pay for celebrations. It can even be used to finance a purchase or consumption for your business.

What you are going to consume or acquire with the credit must be within the amount established by the financial institution. Interest rates and conditions vary from one entity to another, so you must inform yourself very well on this matter. It is also important that before accepting the offer of a pre-approved credit , you have a clear understanding of the monthly fees you will have to pay and the time it will take you to do so. Failure to inform yourself about these points can lead to uncontrolled indebtedness in the future.

Can you reject me a pre-approved credit?

Can you reject me a pre-approved credit?

As we already mentioned, the fact that a credit is pre-approved does not mean that the bank has or should grant it. In fact, there are reasons and circumstances why the institution may consider that you are not a good candidate to receive funding.

What scenarios could influence rejection of pre-approved credit ?

  • Having lost your job

  • Have credit cards to the limit

  • To be broke

  • Maintain unpaid debts

If you go through any of those circumstances, the bank will consider that it is enough information to deny you the credit.

Easy consumer credits

Easy consumer credits

Easy consumer credit is called this way because it has easy and quick access to the applicant. This type of credit is comparable to those that are granted online. A pre – approved credit also often called easy to consume them credit because they give quickly. However, remember that if the bank offers you the product in a personalized way, it is because it is sure that you can meet the requirements.

You should not confuse easy consumer credits with unsecured credits. The latter are usually very striking because they can be offered at very low rates. If so, you should read all the conditions very well and clarify the terms and doubts you have.

Compare offers in the market

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A pre-approved credit has its advantages and can help you meet personal and even business goals . The important thing is that you have a clear idea of ​​the terms and implications of this type of financial instrument:

  • Credit term

  • Interest rate

  • Amounts of monthly payments to pay

  • commissions

Just as you could obtain a quick approval of the credit, there could be a rejection of it by the banking institution. However, you should know that the market offers you a range of options and offers that can be perfectly adapted to your needs. It’s just a matter of finding the ideal credit!

What does it mean to have a pre-approved credit? We tell you what you should know

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If until now you have not had access to traditional banking to obtain credits, you should know that at Oriencoop we offer you access to the consumer financing you are looking for.

We have a long history, more than 60 years providing quality, satisfaction and reliability to all our clients. Don’t think twice and intelligently choose the option that gives you full support and excellent care. We have consumer credits that you can use for your personal and business projects. Visit our website or visit any of our branches to learn about our products and benefits.

conclusion

Credits, without a doubt, are one of the best tools to achieve goals, develop and grow at all levels. Therefore, it is worth investigating and informing yourself about financial products that can be useful in your personal or work life.

Do you think that a loan could be used to carry out your projects? Do you have a pre-approved credit and are you hesitating to apply for it? Start your management now and meet your goals!