What does provisional credit mean in banking?

Whether you’re applying for a credit card, mortgage loan or auto loan, you likely had to undergo some kind of credit check to establish your credit score and eligibility for qualifying. If you don’t have a credit history, you’ll still be able to get a provisional credit score to see if you qualify.

What does provisional credit mean in a car loan?

If you’re applying for a loan through a bank, you can request provisional credit. This type of credit means that the bank will issue you a pre-approval, but only if you provide supporting documentation. For example, if you need to verify your income, you can provide a copy of your latest tax return.

What does provisional credit mean in a mortgage?

When you are pre-approved for a mortgage, you will receive a loan offer. The terms of this loan will include some stipulations. One of the stipulations you might have to comply with is that you have to maintain a certain credit score.

What does provisional credit mean in a credit card?

When you apply for a credit card, you typically need to provide a credit report and some forms of personal information. If you meet the credit card company's eligibility requirements, they'll issue you a credit card on a provisional basis. If you're approved, the card will be on credit until you pay off the entire balance in full each month.

What does provisional credit mean in a loan?

If you’ve ever applied for a bank loan, you’ve probably had to answer a number of questions about your credit history and finances. One of the questions you may have been asked is whether you have a credit account. To figure out if you have credit, a lender may pull your credit report to see if you have any accounts listed that you may have forgotten about or charged that you’ve already paid off. If so, the loan underwriters will check your credit report