How Do I Qualify for a Car Loan?

How to Get Approved for a Car Loan

Getting approved for an auto loan usually requires you to get organized. You’ll need to have your finances in order so you can apply and negotiate for the best financing rates. To make sure you get approved, follow these simple steps before you apply:

• Check Your Credit – When you apply for a loan, any bank, lender, or dealership financing department will look at two things: your credit score and your credit history. This information is used to determine what rates you qualify for. It’s also how financers decide whether or not you get approved at all. Finding information on your credit is easy. Just check out free sites like Experian or Credit Karma.
• Take Steps to Improve Your Credit – If your credit isn’t where you’d like it to be, don’t worry. You can take some steps to boost your score. Start by paying off any past due bills, then try to pay off any outstanding loans. Next, hold off on making any big purchases or taking out any other loans until after you’ve purchased your new car. Doing this will not only increase your credit score, but it will show financers that you’re serious about paying your auto loan on time.
• Consider Getting a Cosigner – Getting a cosigner is another way to increase your chances of getting approved for a good car loan. It allows you to apply with both your line of a credit and a friend or relative’s. Plus, it shows financers that someone with good credit trusts you to pay back your loan.
• Check Out Our Payment Calculator – We offer a free payment calculator that can help you figure out what kind of financing rates work for you. It’s an easy way to determine your budget and see what kind of options you’ll be applying for.