Pre-approved means that something, typically a loan, credit, or transaction, has been provisionally sanctioned or accepted beforehand, often based on preliminary information or criteria. This suggests that the entity granting the approval has evaluated the applicant or situation and determined a high likelihood of acceptance, streamlining the final approval process. It signifies a greater chance of success compared to standard applications and can come with pre-set terms and conditions. This offers convenience and speed, as the formal application often involves minimal additional verification.
Pre-approved meaning with examples
- Sarah received a pre-approved credit card offer in the mail. It stated a specific credit limit and interest rate, based on her credit score. She was likely to be granted the card immediately if she chose to accept. This pre-approval saved her time from going through the standard application. The offer still required her to confirm personal details before it was activated.
- The car dealership offered pre-approved financing to potential buyers. This meant customers could choose a vehicle, then start the process of having loan approval. The dealership verified key aspects of each customer's financial situation, which gave them a higher rate of acceptance. This increased sales and offered convenience for buyers who wanted to buy on the spot.
- Before applying for a mortgage, John checked his pre-approved mortgage offers. The bank had analyzed his financial history. They could offer a set loan amount at a specific interest rate. This gave John an estimate of what he could afford. It simplified the process for John and provided an early advantage to the borrower.
- As a loyal customer, Maria received a pre-approved travel credit for her next flight. She knew she could make the next booking with the flight cost taken care of. This was a reward. This provided an incentive for her to continue to fly with the airline. It offered her a convenient means of travel.
- The university sent out pre-approved scholarship offers to students who met certain academic criteria. This significantly increased the probability of students getting the scholarship. Students could choose to accept. This helped students to plan their tuition fees early. These offers incentivized high-achieving students to attend the university.