 TITLE: Prequalified vs. Preapproved: What’s the Difference? CONTENT: What Does Prequalified Mean?\n----------------------------\nPrequalification means the creditor has done at least a basic review of your creditworthiness to determine if you're likely to qualify for a loan or credit card. Consumers initiate this process when they submit a prequalification application for a loan or card.\nRequirements for prequalification can vary depending on the situation. It may involve sharing basic information about your financial situation, such as your annual income, monthly housing payment and savings. For some prequalifications, lenders will check your credit through a soft inquiry—the type of inquiry that doesn't impact your credit scores.\nOnce you're prequalified, you can choose to apply and undergo a complete review process. The review may require you to submit official documents, rather than estimates, and agree to a hard credit inquiry, which can impact your credit scores.\nGetting prequalified doesn't guarantee an approval. But if you're able to apply for prequalification with a soft inquiry (or no inquiry), it's generally a good idea. If you get denied at this stage, you'll know you can move on and avoid the hard inquiry. END