Definition
Pre-approval, or pre-qualification, is a benefit that a few lenders grant to applicants with good credit. They are given an indication of their chance of approval, so they are able to plan accordingly and be prepared for the application process.
In the room
How the word shows up in a real conversation.
You know Pre-approval or pre-qualification is doing work when it changes a weekly choice — price, hire, channel, or kill. The working definition: Preliminary assessment of a borrower's creditworthiness before formal loan application.
Common mistake
Using Pre-approval or pre-qualification as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Positive net present value
Investment that generates more value than its initial cost.
Read definition →
Post-acquisition integration
Process of combining two companies after a merger or acquisition.
Read definition →
Pre-closing
Period before finalizing a business transaction or real estate deal.
Read definition →
Preference shares
Stock that gives shareholders priority over common stockholders for dividends and assets.
Read definition →
Research more
Open the word in an AI tool with a ready prompt. We do not send your data.
Get one word every week
A 3-minute read: 1 word, 1 founder lesson, 1 tool.