A pre-approved loan can change from lender to lender. However, loan providers will tend to take the following factors into consideration when considering a pre-approval:

• How much you already owe
• Your addresses
• Application history
• The types of credit you’ve previously used

If the personal information you’ve provided doesn’t align with the records in the soft credit check, it may affect your application. Be sure to take time to familiarise yourself with each point before you apply.

You’ve made your application, but now what? Let’s run through how it all works. This should give you an overview of what to expect. However, bear in mind, this is a general overview, lenders may have their own individual ways. If you apply through Norton Finance one of our qualified loans advisors should be able to guide you through the process and help with any questions.

There are two ways to apply for a pre-approved loan:

1. Apply yourself
2. Apply through a broker who will let you know if you’re eligible for a loan.

If you’re applying for a pre-approval either by yourself or with a broker, there can be a lot to consider.

• Amount - Not only do you need to decide how much you need to borrow, but the type of loan is also important. Secured or homeowner loans will allow you to borrow more than unsecured. You should also factor in the Annual Percentage Rate (APR) and take into account the affordability of repayment.
• Lender options - Look for different lenders to get an idea of the repayment rates to help you come to an informed decision. You can do this with lenders themselves, through comparison websites, or use a broker such as Norton Finance to do the hard work for you.
• Loan eligibility search tools - After you’ve found a loan that best suits your needs, an eligibility checker can show you the likelihood of being accepted without showing up on your credit score.
• Soft credit check - The eligibility search tool will use a soft credit check to look at your credit report. The information you entered will be assessed and will inform the lender whether you’re approved or not.
• Pre-approval or rejection - Decision time. At this stage, you’ll find out if your application is successful or not.

Yes, your loan can be rejected after pre-approval. If the lender finds out that the information you’ve provided is inaccurate, you may be rejected. Other concerns that may only show up after a hard, or full, credit check can result in a rejection too.

We recommend you take your time to fully research your alternatives, and don’t rush your application. Remember, quality is key. The last thing you need is multiple applications potentially harming your credit score because of one small error.

Find out more about hard vs soft credit checks

There are several things you can do to increase your chance of approval, such as:

• Improve your credit score – There are over plenty of ways to improve your credit score. From registering to vote, to sticking to your credit limit – find out more in our guide.
• Fix errors on your credit report – A small detail like a typo can have a big effect so ensure everything is correct.
• Limit your number of credit applications – Too many applications in a short space of time can indicate financial problems.
• Provide the correct information – The data you enter is going to be compared to your credit record. Even for things that might not be directly finance related, incorrect information can result in a rejected loan request.

Pre-approved loans are a provisional agreement between the borrower and the lender, whereas if you opt for a traditional loan the agreement won’t be conditional. While you can opt for pre-approval to see if your application is likely to be accepted, to continue you will need to apply for a traditional loan.

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