PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
What does prequalifying for a car loan mean?
I'm thinking about buying a new car and a friend told me I should prequalify for a loan. What does this mean?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
You have a smart friend there. Keep them around!
Prequalfiying for a
car loan
is when you provide your personal information to a lender to determine your creditworthiness. The upside of prequalifying is that your credit is not impacted and you can get a basic idea of how much you might be able to spend.It’s worth noting that prequalifying is different from preapproval. In the preapproval process, lenders run a hard inquiry on your credit that can drop your score by five to 10 points. Prequalifying also gives you an actual dollar amount that you can use to shop around and provide as a negotiating tool.
If you follow through on buying a car, don’t forget about your car insurance needs. You’ll most likely need full coverage auto insurance, so if you want to find the best rate, check out the
Jerry
app—we’ll get you personalized quotes from top providers so that all you need to do is choose the plan that works best for you.Best of luck with your car loan, and with your new car!
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
