UPDATE: Aro no longer uses pre-approval but may give you an indication of your chance of acceptance with a lender when you check your eligibility. Please bear in mind that any pre-approved finance option or chance of acceptance indication will be subject to final lender checks and it does not guarantee acceptance. If you proceed with a lender, the lender may carry out a hard credit search to complete their final checks.
When you check your eligibility, we let you know how likely it is that you’ll be approved for a loan or credit card in your search results. We do this by adding pre-approval percentages to your options to give you a good indication if your application will be accepted should you proceed. To help give you a better idea of what you’re looking at when you check your finance options, we’ve outlined what each of these pre-approval percentages mean below.
100% pre-approved
What is a pre-approved loan offer? If you’re 100% pre-approved for a loan or credit card, this means that, subject to passing fraud checks, you’ll almost definitely be approved for that finance product if you decide to apply.
However, there is a small caveat. Although the chance is small, if something you’ve entered into our eligibility check is incorrect or the application is suspected to be fraudulent, it is possible that your application could be declined.
- Most likely to be approved offer.
- Based on the information you’ve told us, you should be approved for this loan or credit card if you apply.
90% – 99% chance of approval
This means that you’re very likely to be approved for a loan or credit card based on what you’ve told us. Usually, the lender will need to do a few final checks on their side to fully approve your application.
- Very likely to be approved for this offer if you apply.
80% – 89% chance of approval
If you fall into this bracket, there is still a good chance you’ll be approved for the finance product you’re after. However, there is a slight risk you’ll be declined if you proceed. The lender will usually need to do a few extra checks to make their decision.
- Likely to be approved for this offer.
Below 80% chance of approval
If your offer is below 80% chance of being approved, it’s less likely that your application will be approved if you decide to proceed to the lender.
Although in some cases it is more likely to be approved than not, it’s worth weighing up whether you want to risk having a declined application recorded on your credit file. You may want to check if there are any easy ways you can improve your credit score first before you go ahead and apply.
Not sure how you can improve your credit score? Check out our five easy ways to give your credit score a boost.
What if there is no pre-approval percentage?
Not all lenders are able to make a pre-approval judgement based on our soft search eligibility check. This means that we can’t add a pre-approval percentage to your result. In this case, it’s best to weigh up whether the option is right for you based on the rest of the information you have available to you.
Just remember, it’s always best to consider all your options and make sure it’s the right choice for you. Want to check if you have any loan options? Check your eligibility now – it won’t harm your credit score.
For more information about how pre-approval works, check out our guide, What is a pre-approved loan offer?
FAQs
100% pre-approved
What is a pre-approved loan offer? If you're 100% pre-approved for a loan or credit card, this means that, subject to passing fraud checks, you'll almost definitely be approved for that finance product if you decide to apply. However, there is a small caveat.
How is your pre-approval amount calculated? ›
What Determines Your Preapproval Amount? Lenders base your preapproval amount on the risk they take to loan you money. In other words, you can get preapproved for a higher amount if your financial history shows that you have a higher likelihood of making payments consistently and on-time.
Is a 70% chance of getting a loan good? ›
See loan deals and your chances of approval. Eligibility is scored as a percentage – over 70% shows a strong chance of approval. We'll also show deals where you're pre-approved.
What is 90 chance of credit card approval? ›
It looks at lenders' criteria for granting new credit, and compare how well you meet those criteria. A score of 90% means that nine out of 10 people in your situation would be granted that particular card or loan.
What are the chances of getting denied after pre-approval? ›
What are my chances of getting denied after preapproval?
| Loan program and purpose | Closing rate |
|---|
| Conventional purchase | 80% |
| FHA refinance | 65% |
| FHA purchase | 78% |
| VA refinance | 72% |
2 more rowsIf you have an extensive monthly debt burden – for example, a high DTI ratio – your preapproval amount will be lower.
How much do you have to make to get pre-approved for 500000? ›
In today's climate, the income required to purchase a $500,000 home varies greatly based on personal finances, down payment amount, and interest rate. However, assuming a market rate of 7% and a 10% down payment, your household income would need to be about $128,000 to afford a $500,000 home.
How much house can I afford if I make $70,000 a year? ›
As a rule of thumb, personal finance experts often recommend adhering to the 28/36 rule, which suggests spending no more than 28% of your gross household income on housing. For someone earning $70,000 a year, or about $5,800 a month, this means a housing expense of up to $1,624.
How do I get the highest preapproval? ›
The best way to get preapproved for a large amount is to have strong credit, little or no debt and high, steady income. People with lower credit scores, limited or uneven income or high debt levels will see lower preapproval amounts.
What credit score do I need for a $70000 loan? ›
What credit score do you need for a $70,000 loan? Typically, you need a good credit score (670 or better) to qualify for a $70,000 personal loan. $70,000 is a lot of money, and since the loan is unsecured, your lender needs assurance through a positive credit history.
A good personal loan interest rate depends on your credit score: 740 and above: Below 8% (look for loans for excellent credit) 670 to 739: Around 14% (look for loans for good credit) 580 to 669: Around 18% (look for loans for fair credit)
What is a bad percentage on a loan? ›
Avoid loans with APRs higher than 10% (if possible)
“That is, effectively, borrowing money at a lower rate than you're able to make on that money.”
What is the 91 3 rule for credit cards? ›
so what this means. is that you are going to wait 91 days and. three full statement cycles before you decide. to ask either for a credit limit increase. or for a new line of credit all together. to maximize the amount of funding that you get.
What's the hardest card to get approved for? ›
Why it's one of the hardest credit cards to get: The hardest credit card to get is the American Express Centurion Card. Known simply as the “Black Card,” you need an invitation to get Amex Centurion. And only the super rich and famous can expect to get the call, as...
What is the 2 90 rule for credit cards? ›
American Express application rules state that customers can get approved for up to two credit cards every 90 days. However, if you apply for both cards on the same day, your applications may be put on hold while the bank reviews them manually.
Does pre-approved mean you will get it? ›
Both pre-qualified and pre-approved mean that a lender has reviewed your financial situation and determined that you meet at least some of their requirements to be approved for a loan. Getting a pre-qualification or pre-approval letter is generally not a guarantee that you will receive a loan from the lender.
Is pre-approval enough to make an offer? ›
Just like you don't need to have mortgage preapproval to look at a house, you technically don't need preapproval to make an offer either. However, you may find that you'll have a hard time getting an offer accepted without your preapproval.
Can a pre-approved loan be rejected? ›
Your Job Status
There is a very high chance that your loan application will be rejected if you don't work in any of these jobs. Another case is that the bank was made aware of a sudden job change after completing your paperwork. The bank may reject your pre-approved loan on those grounds.
What is the difference between preapproval and full approval? ›
What's the difference between approval and pre-approval? One word: verification. Pre-approvals are an estimate, not a promise. A pre-approval is a non-binding statement saying, based on a cursory review of your unverified financial status, that you are eligible for a loan up to a certain amount.
