What being “pre-approved” ACTUALLY means

by Hufflepuff20

Hello friends! In case you don’t know, I currently work at a credit repair company and I just want to spread a piece of information that I think more people need to know:

If you get an email/phone call/ text/ letter from some kind of company (it could be a car company, a loan company, credit car company doesn’t matter) saying that you’ve been “pre-approved” that literally means nothing. It’s purely just them using a good marketing tactic.

The literal meaning of “pre-approved” is “at a stage before approval”. Which is the stupidest thing ever because anyone could be pre-approved for anything. Technically I am pre-approved to be the President of the United States.

“Pre-approved” is a meaningless statement in the credit world, meant to lure people into applying for things. Which if you have bad credit, applying and getting denied for things just makes it worse. Don’t fall for it.

EDIT: Hey guys, so I’ve got a lot of people telling me how wrong I am, which is fine. The thing is is that yes, some companies will actually pre-approve you in the sense that you are guaranteed to receive whatever it is you’re applying for. I would like to emphasize though that that is NOT the vast majority of cases.

You can just google pre-approval and come up with the same thing I just told you.

The thing that I want for you all to take away from this is DO YOUR RESEARCH. Get informed, know what you’re applying for. Read the fine print. Ignorance is how people get their credit screwed up, don’t let that happen to you.

2,235 views