You’ll often hear the term “pre-approval” or “pre-approved” thrown around at banks and car dealerships – but what does it mean exactly and why do people get them? See how pre-approval can work to your advantage and how to get pre-approved for a car loan, personal loan, and more.
When you have a high credit score or a chunk of savings, it’s easy to obtain a loan or purchase a big-ticket item like a car outright. Sadly, this isn’t possible for many Canadians. If your credit score isn’t where you’d like it to be, then you know how stressful it can be to get a loan to purchase everyday essentials or take care of a surprise expense. Fortunately, a pre-approved loan can give you peace of mind and help secure the funds you need.
Traditionally, a pre-approved loan is when a lender tells you how much they’re willing to give you based on your current credit and financial records. Pre-approvals can be done for all sorts of loans and can remain available for anywhere from a few days to a few months.
People like getting them before purchasing a house or car so they know how much money they can obtain along with important details such as interest rates and term conditions. Pre-approvals also increase bargaining power and give you the confidence to find what you’re looking for and make an offer.
You can get pre-approved for a variety of loans including:
Major banks and credit unions advertise pre-approved loans. However, it can be frustrating working with these traditional sources as they often require lots of paperwork and multiple in-person appointments. You’ll also have a hard time tapping into these services if you possess a less than ideal credit score.
Car dealerships have vehicle financing options too, but many don’t have the bandwidth to support Canadians with bad credit or no credit.
Fortunately, times have changed.
Credible online lenders are levelling the playing field by assisting Canadians facing all sorts of credit situations. Tech companies—like Canada Drives—specialize in helping bad credit customers get access to the financial services they need and help set them on the path to a brighter financial standing.
You can apply for pre-approval from various online lenders, but what happens if you need quick cash and don’t have time to go through the pre-approval process? In this case, there are reputable lenders like Fresh Start Finance that can approve you in minutes. Fresh Start Finance provides speedy personal loans of up to $15,000, regardless of your credit situation. Flexible repayment plans, no hidden fees, and competitive interest rates are just some of the other great perks you can take advantage of.
You can get a guaranteed credit card with Capital One no matter what your credit score is. The Canadian credit card issuer promotes low-interest rates and credit limits of up to $7,000. Zero liability insurance also protects you from unauthorized card use. There is an app for iOS and Android as well so you can monitor your spending and pay off your balance from your phone.
Canada Drives can get you pre-approved for a car in no time. After completing a quick online application, the fintech company will match you with local certified dealers that are willing to provide vehicle financing. By doing all the work for you, Canada Drives saves you valuable time and presents the best options for your financial situation.
Get behind the wheel of your dream car with Canada Drives:
Take the first step towards a pre-approved car loan by going to our simple online application or calling 1-888-865-6402.
Your online application takes only 3 minutes to complete and we only ask for information we actually need.
Or feel free to call us at 1-888-865-6402