Pete MacInnis, CEO and Founder of eLend Solutions joined us recently and talked about the confusion in the marketplace regarding the difference between pre-screen and pre-qualify. For instance, when we’re talking about pre-screen, consumer consent is not required. For pre-qualification, consumer consent is.
For pre-screen, a fico score (or range) and no or limited data is provided. For pre-qual, exact fico score and all credit report data-elements are available.
For pre-screen, a firm offer of credit to is required. For pre-qualify, a firm offer of credit is not required. For pre-screen, compliance tracking of offer terms and firm offer of letter-production are required. For pre-qualify, compliance tracking of offer of letter-production are not required.
And pre-screen, adverse action, risk based pricing, etc. Are required. For pre-qualify, adverse action, risk based pricing ect, are not required.