What it actually is
Prequalification is a funder looking at a limited picture — usually your stated revenue, time in business and a soft credit view — and indicating what you would likely be offered. It is fast and it costs nothing.
What it is not is an approval. Full underwriting reads your actual bank statements, verifies the entity and checks existing positions. Any of those can move the number, in either direction.
Prequalification vs approval
| Prequalification | Full approval | |
|---|---|---|
| Based on | Stated figures and a soft view | Verified statements and entity checks |
| Credit impact | None to your personal score | None to your personal score |
| Time | Minutes | Typically 2-4 hours on a complete file |
| Binding | No | Yes, on the terms in the contract |
How to make the indication hold
The gap between prequalification and final offer is almost always information. Narrow it by being accurate at the start.
The number that actually matters
When an offer comes, ignore the headline rate and ask for the total dollars repaid, the payment frequency and the date the first payment leaves your account. Those three decide whether the funding helps.
Common questions
Does prequalification affect my credit score?
No. Checking what you qualify for does not affect your personal credit score.
Is a prequalification an approval?
No. It is an indication based on limited information. Full underwriting can change the amount or terms.
How long does it take?
Minutes to prequalify. A full decision typically comes within 2 to 4 hours on a complete file.
Am I committed if I prequalify?
No. There is no obligation to accept any offer.
See what you qualify for
Same-day decision. Applying takes a few minutes and will not affect your credit score.