Jun 20, 2025
The difference between being pre-qualified and pre-approved for a personal loan typically depends on who initiates the first step in the loan process. Another term you might see from lenders is that you’ve been “pre-selected.”
Each of these terms means that a lender determined that you meet its minimum eligibility requirements for a personal loan. This is the first step in applying for a loan. But it doesn’t guarantee that you will be approved for a loan once you’ve submitted a complete application.
To show the differences and similarities of pre-qualification vs. pre-approval, we’ve broken down the terms and loan application process.
To be pre-qualified for a personal loan typically means that you as the borrower have initiated a “soft credit pull” to check if you meet the requirements for a loan. You might call the lender or go to their website to find out if you’re pre-qualified.
Many lenders have an online tool that lets you check. You may be able to use your financial information to see the size of loan and range of interest rates you might qualify for. At Discover® Personal Loans, you can check your rate before you apply. It takes minutes and won’t affect your credit score.
Keep in mind that pre-qualification is based on an initial review of your credit profile using a soft credit pull, which is also called a soft credit inquiry or soft credit check. Since it’s not attached to an actual application for credit, a soft credit pull won’t impact your credit score at all. It also does not guarantee final loan approval.
Each lender may also set its own minimum qualifications for potential borrowers. For example, with a Discover personal loan you must have a minimum individual or household annual income of $25,000, be over 18 years of age, and have a valid U.S. Social Security number to be considered.
Personal loan pre-approval means that you have been chosen by a lender to receive an offer to apply for a loan. This assessment is also based on a soft credit pull, which is an initial review of your credit report. It does not impact your credit score and does not indicate a final lending decision. You may also see a pre-approval called by other names, such as having been “pre-selected.”
Pre-approval offers are often delivered in the mail, through email, or over the phone. They may be a form of marketing, where the lender is aware of you because you’re already a customer or you’ve been identified in some other way.
Pre-approval is typically a stronger indication than being pre-qualified that you meet the criteria for obtaining a loan. If a pre-approval offer is made, the lender has made a preliminary decision to extend you credit if your financial profile has not changed. Like pre-qualification, however, it does not guarantee that you will be approved for a specific loan.
No. Being pre-qualified or pre-approved for a personal loan does not guarantee final approval.
When you submit a complete application, the lender will have your income and employment information. It will then conduct a “hard credit pull” to get a more accurate view of your creditworthiness. A hard credit pull may temporarily impact your credit score.
Based on your most recent information, your application will go through a process called underwriting, in which the lender will assess your creditworthiness and determine whether to approve you for a loan. You may be denied a loan or receive an offer with a different interest rate or loan amount than stated in the initial terms. You might not receive final approval if the amount of your debt compared to your income is too high. Any changes to your credit report since the preliminary review was done might also impact the final decision.
Explore common questions and answers about getting a personal loan and learn more about how personal loans can be used and how to find the best deal.
There isn’t a qualitative difference between the two in terms of which is “better.” The main difference between pre-qualification and pre-approval is the process. Each of them is a tool that is based on an initial review of your credit report. In each case you may be shown specific loan terms, but a final offer will be based on a thorough review of your creditworthiness.
To be pre-qualified or pre-approved means that a financial institution has determined that you meet at least some of the requirements for a loan. With either pre-qualification or pre-approval, you’ll know your chances for final approval are greater than if you simply applied for a loan without them.
It’s important to note again that neither one guarantees that you will receive final approval. And if a final loan offer is made, it may still look different from the initial loan terms you were shown.
Personal loan pre-qualification and pre-approval have no impact on your credit score. They are both conducted using a soft credit pull. Soft credit pulls appear on your credit reports for up to two years, but they don’t impact your credit score.
A lender will typically run a hard credit inquiry on one or more of your credit reports once a full application is submitted. Hard inquiries remain on your credit report for two years, though they only impact your FICO® Credit Score for 12 months.*
You can check your own credit reports by requesting free copies from AnnualCreditReport.com. As a Discover card or personal loans customer, you can get your FICO® Credit Score, plus see important details that help make up your score for free.*
Because pre-approvals involve the lender initiating the review of your credit history, you typically don’t start the process on your own. If you’ve been pre-approved (or pre-selected) for a loan, you’ll receive an offer from the lender either in the mail, through email, or over the phone.
If you’re interested in a personal loan, pre-qualification can give you insights into how likely you are to be approved. You can see if you meet the requirements by sharing basic information with the lender. This might include your name, address, contact information, desired loan amount, and the repayment term that you’re seeking.
By seeking pre-qualification, you may also learn how much you might borrow, your repayment term options, and the potential interest rates and fees you might be charged. These details can help you get a sense of whether a personal loan fits into your budget. Because there’s no hard credit check, there’s no commitment.
To get pre-qualified with Discover Personal Loans, simply answer a few questions and check your rate and monthly payment before you apply with no impact to your credit score.
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The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover, a division of Capital One, N.A., (Discover) or its affiliates.
* FICO® Disclosure:
FICO® Credit Score Terms: Your FICO® Credit Score, key factors and other credit information are based on data from TransUnion® and may be different from other credit scores and other credit information provided by different bureaus. This information is intended for and only provided to Primary account holders who have an available score. See Discover.com/FICO about the availability of your score. Your score, key factors and other credit information are available on Discover.com and cardmembers are also provided a score on statements. Customers will see up to a year of recent scores online. Discover and other lenders may use different inputs, such as FICO® Credit Scores, other credit scores and more information in credit decisions. This benefit may change or end in the future. FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries.
