prequalified

Prequalified is an adjective used to describe the state of having met specified preliminary criteria to be considered for participation in a process or to receive an offer. The concept relies on the idea that some qualifications can be assessed without a full review, screening, or formal documentation. Prequalification does not guarantee outcomes; it typically signals that an individual or organization is in a pool of potential candidates or suppliers.

In lending, prequalification is an informal assessment, often completed online, where a lender estimates how much a borrower might be able to borrow based on self-reported income, assets, and credit information. It does not require a hard credit pull and is not binding. A subsequent formal application or preapproval may involve verification, a credit check, and income verification, and could result in an actual loan amount, rate, and terms.

In hiring and procurement contexts, prequalification refers to initial screening to determine whether a candidate meets essential criteria before inviting to interviews, or whether a supplier or contractor meets requirements to participate in bidding rounds. In hiring, it helps employers filter out unqualified applicants. In procurement, prequalification assesses factors such as financial stability, safety records, quality management, and ability to meet contractual requirements.

Some consumer programs also use prequalification to indicate eligibility for offers or credit products without a hard credit check; recipients may still face final approval after further verification. Overall, prequalification serves as a preliminary filter used to streamline subsequent steps while not guaranteeing final eligibility or acceptance.