In the Glide Loan Application flow, users can be pre-qualified based on your rate sheet configurations. This guide breaks down what pre-qualification means.

What is Pre-Qualification

We use the following data to calculate a pre-qualification offer for the user:

• Guidelines/requirements from lenders (rate sheets)

• Self-reported data such as income

• Soft-pull credit reports

• Other supporting information such as vehicle valuation estimates

Keep in mind the following caveats and limitations to pre-qualifications:

1. It is not a guarantee of approval.

2. It is based on self-reported data from the user, so it can have error.

3. It uses a soft-pull credit report and is not a binding offer of credit.

4. The pre-qualified offer is explicitly an estimate. This means that the final APR and monthly payment might differ for the user. Using your rate sheets, we attempt to show an offer that is as close as possible to what the user's final loan terms will be, but there are a number of factors that could impact this estimate.

How to use Pre-qualifications

Think of pre-qualifications as an indicator to the user of their chances of being approved for a loan. A pre-qualified user is more likely to be approved for the loan than a non pre-qualified user. Showing a pre-qualified offer leads to a better user experience because:

1. They see one offer that can be accepted. This reduces the decision load on the user. (Of course, they can always customize the offer)

2. Users are given more confidence with their chances of approval and are more likely to submit the application.

Overall, pre-qualifications should be slightly more lenient than your final decision criteria since it is only an indicator of the user passing preliminary checks.

See our Rate Sheet article for more information on how pre-qualifications are calculated and how you can configure your logic.