What do I Need to Qualify for a Car Loan?

For starters, there are documents and information that applicants need when applying for any loan from any financial lender:

Proof of Income: In order to secure financing for a new or used vehicle, you’ll need to be able to prove your income so the lender has confidence that you’ll be able to keep up with payments. For most lenders, pay stubs or bank statements will suffice, but in some cases a lender may wish to contact your employer.
Proof of Insurance: Auto insurance is not only required by law, but it’s also required to get a car loan. While you can often purchase insurance at the dealership, it’s also something you can take care of ahead of time.
Identification: To secure a loan, identification is required. You should note a photo ID is often not enough — you’ll likely also need corroborating documents such as a current utility bill in your name or current bank statements with an address that matches the one on your ID.
Proof of Residence: This gives lenders confidence they can contact you if needed. The majority of the time, a current utility bill will serve as adequate proof of your address.

In addition, if you are planning to trade in your current vehicle, you will need that car’s title and registration so you can prove ownership of the vehicle.

Couple Receiving Car Keys After Signing Papers

Do I Need a Good Credit Score to Get a Car Loan?

If you have good credit, you will more likely be able to secure a loan at a low rate. A “good” credit score can vary by lender, but having a good credit history can help you secure a lower annual percentage rate (APR) on your loan. Even if you have bad credit or no credit, many lenders will work with you. In this case though, you may need a co-signer or a willingness to accept a higher APR.

How to Qualify for an Auto Loan