Pre-Approved Credit: Find Out How Your Loan Application Is Evaluated

Check out some tips to make your personal credit application unquestionable. You have certainly heard about pre-approved credit and we can bet that your bank or some online lender is magically offering you limits on credit cards or loans whenever possible. Giving in to temptation, it is very likely that you have already considered using this personal credit option and the moment you need it most surprisingly, it is denied. Do you know why this happens? To start this conversation, you must first understand what it really means to have a pre-approved credit.

What is pre-approved credit and how important is it

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The personal credit limit is a possibility that financial institutions offer clients according to their socio-economic profile and Serasa score. Generally, the bank offers this credit in the form of overdraft and credit card limit. At other financial institutions such as online, for example, you need to fill in some basic data to get pre-approved credit.

If it is a loan, the process can be quick if you choose to use the limit offered by your bank, but make no mistake.

Interest rates can compromise your income much longer and longer than you.

Bank pre-approved credit differs from that of online lenders or credit firms, for example, not only because of the difference in interest rates, but also in the form of customer profile assessment. The bank is more likely to make its pre-approved credit really approved, as this is the way banks profit: by borrowing ordinary people and holding them at high interest rates that they are not even aware of having to pay. While online lenders and credit firms will take your Serasa score and income commitment much more into account when you apply for any line of credit.

On our platform, for example, we always make sure that the loan is a solution and not something that will further wrap your financial life. Therefore, the credit limit available is always based on proof of income from the applicant who, depending on the score, may vary from 15% to 30% of disposable income.

How to ensure your credit limit is really approved

In the case of credit pre-approved by online financial institutions or credit firms, one fact is decisive: if the information you review does not match the date you can prove, the institution will automatically deny you that credit even if your status is “pre -approved “.

For this reason, it is important to confirm all information by correctly submitting the documents requested by the financial institution. Like all credit, you need to keep an eye on your payment term, interest rates, and fees.

All of these items vary for each financial and according to your profile.

At Mutual, we take our commitment to online loan investors and investors very seriously. Therefore, when you register on our platform you need to confirm all your data through a photo of your ID or CNH and proof of residence. That done, simply complete your credit request proposal. If you’re in need of credit but don’t know where to look anymore and don’t want to have to deal with high bank interest rates, download our app available for Android and iOS devices right now. Be part of this story!