When should I recommend prequalification instead of filling out a full credit application?
If a customer has signed a purchase agreement and is ready to move forward with the purchase, we recommend completing the full credit application. However, there are several instances where prequalification makes sense instead. First, if a customer is early in the buying process and doesn’t know exactly what they want to purchase or what they can afford, prequalifying is a good option. Second, if the customer simply doesn’t want their credit pulled yet, prequalification can help them understand what they can afford with no impact to their credit score. Third, if the customer is purchasing an ordered unit that won’t arrive to the dealership for more than 60 days, they can still prequalify to understand what financing options may be available to them without impacting their credit score. When they are ready to finance, they will work with Priority One to transition to a full credit application.
What is a “hard pull” versus a “soft pull?”
A soft pull is a credit review with no impact to the credit score. Priority One conducts a soft pull with prequalification. A hard pull is a direct inquiry into the customer’s credit history. Priority One conducts a hard pull when the customer is ready to apply for financing through your lender portfolio and completes a full credit application.
What’s the difference between prequalification and preapproval?
Prequalification is a general credit check that looks at a customer’s credit history across one or multiple credit bureaus with no impact to their credit score. A prequalification does not guarantee financing. The customer must complete a full credit application to be reviewed by lenders in your portfolio. Preapproval gives the customer insight into rates and terms if they were to finance with one specific lender. It serves as a guaranteed approval with the participating lender.
Does it cost anything to add prequalification for my customers?
Prequalification services are complimentary to all Priority One dealers.
Does prequalification slow down the buying process?
No. When your customer fills out a form to prequalify, Priority One will call them to discuss their financing needs and make sure that prequalification is the appropriate course of action versus completing a full credit application. If the customer chooses to prequalify, when they are ready to commit to a purchase, they already have a connection with a finance manager at Priority One and can give them a call to continue to a full credit application.
Will I get a copy of the customer's credit report?
Priority One will review credit information with the customer. Dealers will receive an update on the dealer portal to know when a customer has submitted a request to prequalify.
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