Can I cancel a preapproved car loan?

I was preapproved for a car loan, but I had some unforeseen expenses come up. Can I cancel it?

Sorry to hear about your extra expenses, but don’t worry about canceling your preapproval!
When you get preapproval for a car loan, you’re under no obligation to follow through. A preapproval simply lets you know the likelihood of approval, as well as what interest rate and maximum loan amount you’re approved for.
Because a preapproval isn’t legally binding, you can simply walk away. Out of courtesy, you may just want to call the lender to tell them what’s happening. Not only will this provide a better rapport for future loans, but you can also avoid an onslaught of follow-up phone calls from the lender.
The circumstances may be different if you’ve already signed for the loan, however, as you generally cannot cancel a loan that easily.
When you do get a car, you’ll want to save money on your car insurance. Use the Jerry app to compare quotes from up to 50 car insurance companies. The average Jerry user saves $879 per year on car insurance!
Eric Schad
Answered on Oct 21, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

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