 TITLE: Prequalified vs. Preapproved: What’s the Difference? CONTENT: What Does It Mean to Be Preapproved?\n------------------------------------\nGetting preapproved may be a better indication that you'll get approved for a loan or card—but it depends on the process. For example, if you're preapproved for a credit card online, the card issuer may be using preapproval and prequalified to mean the same thing.\nAdditionally, you may have received preapproval offers for loans or credit cards by mail, phone or email. These prescreened offers generally mean you appeared on a credit reporting agency's list of consumers that meet a creditor's criteria, and have been sent a firm offer of credit as a result.\nIf you respond to the offer and apply, the creditor must offer you the same terms as in the mailing. But those terms may have a range, and you won't know your exact offer until you apply and agree to a hard inquiry.\nWhether you applied or received an unsolicited offer saying you're preapproved, there's still no guarantee you'll get approved—especially if factors like your income, collateral or credit history have recently changed.\nMortgage and car loan preapprovals, however, are a contrast to preapproval for other types of credit and can involve a fairly complex application and review process. You may need to submit tax returns, proof of income and bank statements and agree to a credit check. The mortgage or auto lender could take some time to review and verify these documents, and they may then offer you a loan preapproval letter that's good for several months. END