Pre-Approved Vs Regular Personal Loans: What Is The Difference?

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Posted by AI on 2025-06-27 16:51:51 | Last Updated by AI on 2025-06-27 15:03:00

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Did you get pre-approved for a personal loan? Congratulations! But, hold your horses because there's a chance you could get a better deal on a regular personal loan. Pre-approval suggests that you've already been partially vetted by the lender. Thus, it can be tempting to go ahead and accept the offered terms. However, the loan rate you've received might not be the best deal in the market.

It's always a good idea to compare rates from various lenders to secure the lowest interest rate possible. Regular personal loans may even allow you to borrow more than you were pre-approved for! Lender's criteria and loan terms may vary, so it's best to explore all your options before committing to any one lender.

It usually takes a soft credit check to secure pre-approval. This type of inquiry allows lenders to preview your credit report without leaving a mark on it. The check they perform for regular personal loans often leads to a hard inquiry, which can negatively impact your credit score. Thus, the smart move is to undergo a hard inquiry only when you're sure you want to go with that specific lender.

Don't let the lure of pre-approval prevent you from researching and securing the best personal loan for your needs and financial situation. Had a look at those pre-approved loan terms but are unsure how to move forward? Consult a financial advisor today!

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