How exactly do you apply for a car loan?

Question

I have never taken a loan out and I'm kind of nervous seeing as I don't really know how to. What exactly do they do to check your credit? Will I need a co-signer? Do I just go into a bank and ask for a loan? What's a good credit score?

Answer 1

1) Yes, they will check your credit.

2) You will need a co-signer if you have bad credit or no job.

3) A good credit score is 700ish plus. You will need to be in the 700s to get the best rates.

4) Applying is easy, and someone will help you with the forms if you need it.

Now, there are three places I would look. Two before you shop, and one after.

1) Ask your local credit union/bank what their used and new car rates are.

2) Surf the net. LendingTree and Capital One Auto Finance may be able to get you a better rate than the local credit union.

Use those two sources to find your "best deal", or the loan with the lowest interest rate. Once you know that, get approved and go to the car dealer.

Source #3 for financing is the car dealer. Negotiate ONLY PRICE witht the dealer, telling them that you have your own financing lined up. After you have agreed on price, ask their financing department for their best rate.

If the dealer's rate is higher than yours, haggle to get it lower. Tell them what they have to beat.

If the dealer's rate is lower than yours, haggle to get it lower, but even if you fail, take it.

-->Adam

Answer 2

1

Answer 3

Find the car.
They usually have finical banks that they deal with.

They will need your pay stubs, driver license, and insurance.
You may need a down payment.

If your credit is good, then you won't need a co-signer. But they will let you know when they pull your credit report.

When they check your credit report: All they are looking for is if you pay your bills on time. And how many bills you owe on..

If you don't have any credit. Meaning, You don't have anything in your name. You may need a co-signer.

Answer 4

You CAN get a decent car loan, even with bad credit. I've done it, but you'll have to look around. That's one of the BIG mistakes people make...just taking the first offer that's given to them when they go to the dealer. Be smarter than that.

WARNING: DON'T GO TO BUY A CAR WITHOUT HAVING THE LOAN FIRST. The auto dealers will eat you alive and give you a crappy rate. Shop around with lenders who specialize in bad credit car loans. It's a better option, you don't have to take what they're offering if you don't want it, and it's better than dealing with the car dealer's people.

There are usually some nationally based car loan companies who specialize in bad credit car loans who advertise on the page linked below...

http://www.axalda.info/bad-credit-car-loans.html

Answer 5

The best place to start is w/ your credit union or bank. Ask one of the bank reps. to explain the process to you.

A lender will check your credit scores w/ three credit reporting agencies & take an average of them. Based on the average - you may or may not need a co-signer.

For more information about credit scores: http://www.dailypress.com/business/dp-now-creditreports.0828,0,396828.story?track=rss

For more information about car loans: http://finance.yahoo.com/how-to-guide/loans/18444
http://www.dontgettakeneverytime.com/

Answer 6

Auto finance is what I do for a living and I agree with Adam except never tell the dealer that you have your own financing until you have agreed on the best price.

The reason is as long as the dealer thinks you are going to finance with them they will give you a lower price if they think you are ready to go somewhere else thinking that they will be able to make it up once you get into the finance office.

Only after you are in the finance office do you tell the Finance Manager that you have your own money and if he wants your business he has to beat the rate you already have.