Pre-approval from NFCU?

[darwin_wins]

I got an email from NFCU about a personal loan, not sure what pre-approval means though. Has anyone seen this before?

[jbsea]

It means that if you want it you can get it....

[darwin_wins]

---

@jbsea wrote:

It means that if you want it you can get it....

---

But I don't see any of this under offers when I log in.

[jpope1294]

I received this same email yesterday.  I am a bit leery because I applied for a personal loan online last week and was declined.  Following your thread to see what others have to say.

[darwin_wins]

---

@jpope1294 wrote:

I received this same email yesterday.  I am a bit leery because I applied for a personal loan online last week and was declined.  Following your thread to see what others have to say.

---

I don't even need a loan, I was just wondering. May be I will call them up this evening and see what it really means.

[jbsea]

It means that the last time they did a soft pull on your account that you would qualify for a personal loan.  Not guaranteed but basically yes.  So as long as no drastic changes happened you SHOULD be able to get it.  It is just like pre-approval for a credit card.

[RobertEG]

Not stated in the offer is whether it is being made based on a listing they obtained from a CRA.

Creditors are provided a special service under the FCRA wherein they can submit stated criteria to a CRA and obtain a screening against the CRA files that produces a listing of consumers who meet the stated screening criteria.

In exchange for that service, the creditor than makes an offer of credit to those on the listing.  Their offer is required, under the FCRA, to be a "firm offer for credit," meaning they must honor it if the consumer applies and is found to continue to meet the criteria.

If the offer included the statement that it was made based on a listing provided from a CRA, it is not a junk offer..... it is a firm offer for credit.

[ddemari]

what if you get something like that and it does state on their the disclosure about a firm offer for credit but then you get denied??

[darwin_wins]

So I finally called to see what it means and all it means is I can apply based on the account standing I have NFCU and not that I am pre-approved or anything.

[RobertEG]

If you get a firm offer based on a pre-screening conducted by the CRA, you can then apply.  You are not guaranteed approval.

They can then pull your full credit report and evaluate whether you continue to meet the criteria.

Here is the FCRA definition of a firm offer for credit or insurance.

"FCRA 603(l) The term “firm offer of credit or insurance” means any offer of credit or insurance to a consumer that will be honored if the consumer is determined, based on information in a consumer report on the consumer, to meet the specific criteria used to select the consumer for the offer, except

that the offer may be further conditioned on one or more of the following:

• (1) The consumer being determined, based on information in the consumer’s application for the credit or insurance, to meet specific criteria bearing on credit worthiness or insurability, as applicable, that are established

• (A) before selection of the consumer for the offer; and

• (B) for the purpose of determining whether to extend credit or insurance pursuant to the offer.

• (2) Verification

• (A) that the consumer continues to meet the specific criteria used to select the consumer for the offer, by using information in a consumer report on the consumer, information in the consumer’s application for the credit or insurance, or other information bearing on the credit worthiness or insurability of the consumer; or

• (B) of the information in the consumer’s application for the credit or insurance, to determine that the consumer meets the specific criteria bearing on credit worthiness or insurability.

• (3) The consumer furnishing any collateral that is a requirement for the extension of the credit or insurance that was

• (A) established before selection of the consumer for the offer of credit or insurance; and

• (B) disclosed to the consumer in the offer of credit or insurance."