What is a pre-approved personal loan?

When applying for a loan, you would want to know whether you are eligible and, if so, how much amount you can borrow.

Because a loan application hurts your credit score, you would take out a loan only when you are confident about the approval, but how can you know it unless you apply?

This is when a pre-approved personal loan comes into the picture.

“A pre-approval personal loan gives you a clear-cut idea about how much money you can borrow from an online lender along with the duration and interest rates.”

Not all lenders provide pre-approval services for personal loans, so you must know who you are applying. You do not need to worry as FastenLoans will help you find the lender with this service to offer.

Our network of reputed online lenders will not let you down to get the quote. No delays and unnecessary paperwork because we will inform you beforehand what you need to get pre-approval.

When you get pre-approval, it means a lender agrees to lend you money based on your information. It does not guarantee that you will get approval as it is subject to the rest information to be submitted and hard credit checks at the time of the final application process.

Why should you apply for a pre approval personal loan?

Personal loans carry a large amount of money, although paid back between one and five years. You may not be able to know whether a lender will be ready to lend you the money you have asked for.

Therefore, it makes sense to apply for a pre-approval personal loan or you can say these are its ADVANTAGES:-

  • More possibility of approval

    You will likely know how much a lender agrees to lend you by a pre-approval letter. As you know possible interest rates, you will also learn how it will affect your finances throughout the term, so there will be no confusion about the size and length of the loan.

  • No credit score damaging

    You need to meet the eligibility criteria even to get a pre-approval letter. A lender will grant you the letter based on your income-related information. Your lender will turn you down if your current income does not align with the borrowing amount. However, the good thing is that it will not pull down your credit score because the lender will run a soft credit check, which does not leave any trails on your credit report.

  • Comparison is possible

    You can get pre-approval from multiple lenders and compare their interest rates so you can choose the most affordable deal.

Before we take your application to our partner lenders, we will ask for all necessary documents, so you do not need to face any interruptions. We will carefully analyse your income records, so we introduce those lenders to you who find your application suitable to their lending policy.

What are the Disadvantages of Pre-Approved Personal Loans?

Benefits are just one side of the coin. As a borrower, you must know the drawbacks of pre-approved personal loans in the UK too. Knowing how much you can borrow is not enough to get into the action.

  • Pre-approval does not mean that you will certainly get money. The final decision is made after running a hard credit check.
  • Interest rates at the time of pre-approval are not final as they depend on your credit rating.
  • You will also be paying processing fees, and other charges levied

How to pre qualify for a personal loan without hurting credit?

Whether you are an employee or a self-employed, you will have to meet the eligibility criteria for pre qualifying for a personal loan. You do not need to worry about hurting your credit score as no hard credit search is conducted.

  • You should have a decent credit score.
  • You should be able to provide a record of monthly income statements.
  • You will need to provide contact information and identifying information.

Your chances of debt consolidation loan for bad credit situation depend totally on how you manage finances in the present. The lender should see improved financial behavior.

How can FastenLoans Help you qualify for pre-approved personal loans?

As a broker, we would like to know your credit needs and analyse your current financial situation. Various lenders are out there offering personal loans, but everyone follows different criteria.

The disbursal amount varies by lender, and therefore knowing your credit needs to help us arrange a suitable lender for you without the risk of rejections and unnecessary delays. The sooner you get a pre-approval letter, the sooner you apply for a personal loan.

If you have bad credit, do not get upset. We will arrange lenders that have the policy of accepting applications within a credit score range that you have.

Shopping around a loan at a better APR is extremely convenient if you get this process done with us. You do not need to get into the hassle of searching for a lender that fits in your credit band, as it takes a few seconds for us to do it.

You just need to contact us to get a pre-approved personal loan and the rest task we will handle.

Is there any difference between pre-approval and conditional approval?

Pre-approval is an initial stage of verification of your application based on your financial and personal details. Your application is immediately pre-approved if the lender finds you can repay the money you have demanded.

Conditional approval is when you are asked to provide additional details like payslips and employment details to support your application. It comes after pre-approval. It generally means that the lender is ready to lend you money but still needs some specific information to complete the process.

To get a better understanding, look at the following table:

Pre-approval Conditional approval
It is based on the information given by you and your credit report. It comes after pre-approval but involves certain conditions.
The preapproval letter will state your eligibility for a loan up to a specified amount. The lender will strictly review some documents before the final approval of a loan.
You are still in your dream stage because there is n guarantee about the loan approval. You are almost there. Approval is denied only when conditions are not met.

What documents do I need to submit to prequalify for a personal loan?

Although pre-qualification of a personal loan does not involve too much paperwork, it does not mean that you do not need to submit any documents. Without these documents, a lender cannot decide your eligibility for the amount you have mentioned in the application. Here, we have mentioned some documents that all lenders generally require to grant a pre-approval letter.

  • Your personal details like contact number, residential address and email ID.
  • Your employment details like payslips, your current employer, and income statement in case you are self-employed.
  • Your financial details like your monthly expenses and current debts.

We will inform you what are the documents you need to get pre-approval at the time of application, so no time is wasted in the hassle.

How to avoid rejection of a pre-approved loan in the UK?

There are nominal chances that a lender will turn down your application for a pre-approved loan in the UK. As long as you provide all documents that a lender needs to evaluate your eligibility, no rejection will take place. You must know the documents that a lender needs at the time of application. The most common reasons for rejection include:

  • Your credit rating is not good.
  • You have not supplied proper documents to support your application

Since you will apply for a pre-approved personal loan with us, we will inform you documents you need to submit. Moreover, we will submit your applications to those lenders that perfectly match your current credit score, so there are no chances of rejection.


Can you prequalify for a personal loan with multiple lenders?

Yes, it will not affect your credit rating. You will get the benefit of comparing deals offered by multiple lenders. This will help you choose a favourable deal.

How much can I be approved for?

It depends on your income records and the amount that a lender wants to offer you. You can get these details either by visiting a website of a lender or by getting a pre-approval quote.

Will I be informed of the reason for rejection?

Yes, you have the right to get an adverse action letter. You will be up on the reason for the denial, which may be a poor credit rating, a high debt-to-income ratio, etc. You will also be told which credit reference agency was approached to get your credit file.

Does prequalifying guarantee lower interest rates?

Yes, it is partly true – because it depends on your credit score that must be good. If it is not decent at the time of applying for the loan, you will get money at high-interest rates.