The Difference Between Being Pre-Qualified and Pre-Approved for Credit Union Auto Loan in Las Vegas

The average vehicle owner keeps their vehicle for six years; if it's time to buy your next vehicle, consider getting pre-approved for an auto loan with a credit union in Las Vegas. Or, depending on the specifics of your financial situation, it may be better to pre-qualify for a vehicle loan. Here's what you need to know about the difference between being pre-approved and pre-qualified for a vehicle loan.

The Ins and Outs of Getting Pre-Approved for a Credit Union Auto Loan in Las Vegas

When you get pre-approved for an auto loan, you apply for a vehicle loan that you can then use at the dealership or seller of your choice. Once you're pre-approved, you're basically a cash buyer when it comes to negotiating the terms of the sale. Since financing isn't tied to a specific dealership, you can shop around to find your ideal vehicle.

The pre-approval process is stringent and typically requires verifiable income and a solid credit history. Your lender will run your credit when deciding whether or not to approve the loan and at what interest rate to offer the loan. This will put a "hard" inquiry on your credit report that will ultimately influence your credit score.

The Specifics of Pre-Qualifying for an Auto Loan

The pre-qualification process examines your credit and provided financial information, and it only puts a "soft" inquiry on your credit report. This soft inquiry won't impact your credit score like a "hard" inquiry.

When you pre-qualify for an auto loan, you apply for the loan before you start shopping for your vehicle. Vehicle dealerships often work with a variety of lenders; they'll see if any of the financial institutions that they work with can fund your loan.

Once the dealership finds a lender that will fund your loan, you'll select a vehicle that fits the budget and terms for your loan. At that time, the lender will seek an approval by verifying the financial information provided.

If you're ready to buy your next vehicle, a credit union that offers auto loans in Las Vegas can help you secure financing. CCCU offers multiple loan products to serve a variety of borrowers. Contact us today to get started!