How to Prequalify for a Loan

How to prequalify without hurting your credit

Prequalification uses a soft credit check to estimate rates and amounts. It helps you compare offers safely before a formal application.

What you’ll learn from prequal

• Estimated loan amount, APR range, and monthly payment.
• Possible fees or origination costs.
• Whether you meet basic credit and income criteria.

What you need to provide

• Basic personal info and contact details.
• Approximate credit score and housing status.
• Income, employer, and monthly debt obligations.

Soft vs. hard inquiry

• Soft pull (prequal): No score impact; shows estimated terms.
• Hard pull (application): Required to finalize terms; may cause a small, temporary dip.

Steps to prequalify

• Use lender sites or comparison tools that clearly state it’s a soft check.
• Enter accurate income and debt info to get realistic estimates.
• Compare APRs, fees, and terms (not just monthly payment).
• Pick the best offer and proceed to a full application only when ready.

FAQs (top questions)

Does prequalifying affect my credit score?

No—legitimate prequal uses a soft inquiry. Only the full application triggers a hard pull.

How long do prequal offers last?

They are estimates and can change; rates may shift with market conditions and after a hard pull.

Can I prequalify with multiple lenders?

Yes. Compare several offers via soft checks to find the best rate and fees before applying.

Will I get the exact rate shown?

Not guaranteed. Final terms depend on full underwriting, documents, and a hard inquiry.

Should I include all income sources?

Yes—include regular, documentable income (salary, bonuses, side gigs) to strengthen your estimates.

Internal Links

• See how to apply for a loan to prep documents.
• Review eligibility requirements to strengthen your profile.
• Understand interest rates before comparing offers.

External resources

• CFPB on soft vs. hard inquiries

Conclusion

Use soft-pull prequalification to shop safely, then apply for the offer with the lowest all-in cost. Be accurate with your information and line up documents to make underwriting smooth.