How to Apply for a Car Loan. There are many different lenders that offer car loans. Thanks to the Internet, most people now have access to more options even if they have bad or no credit. The process to apply for a car loan is more or less the same with each lender.
There are many different lenders that offer car loans. Thanks to the Internet, most people now have access to more options even if they have bad or no credit. The process to apply for a car loan is more or less the same with each lender.
Things You'll Need
Proof of student status
Proof of employment
Order a copy of your credit history. Three companies--TransUnion, Equifax and Experian--are required by law to give consumers their credit history. The credit report is provided free of charge, once a year (see Resources below). Dispute any items on your history before you begin applying for car loans.
Collect your supporting documents. No matter what your credit history is, lenders will want to see proof of employment and a checking account. Get letters of recommendation from your bank if you have no credit history. When you apply for a student car loan, submit an official proof of enrollment with your registrar's stamp.
Visit your main bank and ask about your car loan options. Your bank or credit union is often the most reliable source for a car loan because they are familiar with your credit and finances. Fill out a paper application and wait to hear about your loan acceptance.
Apply for car loans online at some of the larger lending sites. You'll often be approved in just a few minutes and the lender will mail you a check for your loan. You have no financial obligation until you sign and use the check to buy a car.
Wait to hear about your car loan status from several lenders before you make a decision. Take the car loan with the lowest interest rate. Ask for your quotes as an Annual Percentage Rate (APR) so you can compare them easily.
Tips & Warnings
Apply for a car loan at the dealership if you have very bad credit. Be aware that dealers will give you a higher rate than most other lenders.
Having someone cosign your loan can increase the chances of a successful application, but be sure this person understands the responsibilities of a cosigner.
Don't ever apply for a car loan online if the website is not secure. Read the company's privacy protection statements to be sure it will not share your personal information with others.
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