Summary: A pre-approval means a lender has reviewed your initial details and believes you’re likely eligible for finance up to a certain amount, subject to further checks. It’s a provisional offer, not a guarantee.
Think of pre-approved like a traffic light. Pre-approval is the green light letting you go, but it doesn’t mean you’re guaranteed finance. Pre-approval is an early stage of the process, and is followed by a credit check. Getting pre-approved is an important first step to securing car finance.
Summary: The pre-approval process involves a soft credit check and basic financial review, followed by final verification if you proceed.
In summary, the pre-approval process involves sharing your details for a soft credit check, receiving a conditional loan offer, and completing final verification through a hard credit check once you choose a car.
Summary: Getting pre-approved offers clarity, confidence, and flexibility before you buy a car.
Getting pre-approved helps you understand your budget, protects your credit score, speeds up approval, and gives you more negotiating power at dealerships.
Knowing Your Budget In Advance
Pre-approval gives you an initial idea of what amount the lender is willing to give you. From here, you can take the time to pick out a car that suits your budget, without any rushing.
No Impact On Your Credit Score
A pre-approval check won’t impact your credit score. Only soft credit checks are ran, which don’t show up on your report to future lenders. For a lender, multiple signs of loan applications is a put off, so minimising this with pre-approval is important.
Stronger Bargaining Power At Dealerships
You’ll have more bargaining power and room to negotiate than someone who hasn’t been pre-approved yet. This is because the lender knows that you are serious about a car and that you’re a strong customer.
Faster Final Approval Once You’ve Chosen A Car
Going through pre-approval means less paperwork once you choose your car, and a quicker process to you getting the keys.
No Obligation To Proceed
A pre-approved loan is generally no obligation, so you can simply walk away. This gives you plenty of freedom and breathing space to decide if this is the right move.
In summary, pre-approval helps you shop confidently, protect your credit score, and speed up the buying process.
No — pre-approval is a conditional indication of eligibility. Final approval depends on full credit checks and vehicle criteria (such as car age, mileage, or value).
Once you have been pre-approved for car finance, you’ll still need to submit to a credit check and further financial analysis before you are accepted for finance. In saying that, getting pre-approved is a massive step towards a new car.
Summary: Follow these steps to get pre-approved quickly and safely.
To get pre-approved, check your credit report, gather key documents, estimate affordability, complete a short online form, and review your provisional offer.
Summary: Once you’ve been pre-approved, you can browse cars that fit your loan range.
If you decide to proceed, we’ll verify your details and perform a hard credit check before finalising your loan.
After pre-approval, look for a car that fits the loan range you have been pre-approved for. Make sure this is definitely the car you want, and take the next step by alerting your potential car finance provider. From here, they will verify your details and run a hard credit check before putting the finishing touches on your loan.
Proof of ID, address, and income will be required at this stage to complete final verification.
Summary: Yes, even if your credit history isn’t perfect, we consider applicants with good, average, and bad credit scores. Responsible repayments can help rebuild your credit over time.
Some car finance lenders don’t support customers with varying credit scores, but we do! Visit our bad credit car finance page to see how we can support you. Although you’ll likely face higher interest rates than someone with a better credit score, finance is a good way to rebuild your credit over time with monthly repayments.
⚠️ Top tip: only go for a car that you can comfortably afford. The finance price a month might seem low, but the cost adds up over time.
Credit Score Definition:“A credit score measures how reliably you manage borrowing. Improving it can increase your car finance options.”
Summary: Boost your approval chances by improving your credit habits — paying on time, lowering debt, and checking your report regularly.
Improving your credit score will increase your chances of being fully accepted for car finance. A good credit score shows you as a reliable customer and one likely to meet repayments. There are plenty of ways you can improve your credit score, and some can have an immediate effect!
Short-Term Credit Score Improvements
Long-Term Credit Score Improvements
Improving your credit score by paying on time, reducing debt, and checking your report can boost your chances of being fully approved for car finance.
Pre-approved car finance means you’ve received a conditional loan offer from a lender, based on a soft credit check and initial financial assessment, but this isn’t a guarantee of finance.
A pre-approval usually doesn’t affect your credit score, as a soft credit check takes place at this point. Once you apply fully, a hard credit check is completed, which is visible to other lenders.
No, pre-approval is not a guarantee of car finance. It’s a good start, but further checks are needed before fully approving you for finance.
Key takeaway: Pre-approval means you’re eligible in principle, but you’ll still need full checks to secure the loan.
After you’ve been pre-approved, pick out the car you want to finance. Once you have the car in mind, reach out to the potential lender and continue the application.
Yes, you can get pre-approved with bad credit. Some lenders won’t accept bad credit applicants, but lots of car finance providers – like Marsh Finance – do. Take a look at our bad credit page and see how we can support you.