What Information Do I Need to Apply for an Auto Loan?
To apply for an auto loan, you must submit detailed information about yourself and your finances to a lender. Lenders view your credit history, income and debt information to determine your lending limits and whether or not to extend you a loan.
Have your information in order before you apply; you may have to do some research to provide the application information.
A potential lender requires your name, address, date of birth and Social Security or tax identification number to access your credit report. The bank uses the credit report to view your credit score, current debt, payment history and length of credit.
Some banks may require additional information after viewing the report, such as a copy of your social security card or proof of satisfied bills. The lender does not determine your loan based on your credit score alone; it also considers various pieces of your credit information.
Employment and Housing Information
The credit application requires you to provide your employer information, including name, address and a contact phone number so it can verify your length of employment and income. Expect to provide your gross annual income and your most recent pay stub, which states your year-to-date income.
Homeowners likely must provide a monthly mortgage payment amount and the mortgage company’s name and phone number. Renters must provide a rental contact and rent payment amount. Prepare to provide at least two years’ worth of employment and address information.
If you are applying for a loan outside of a dealership, you must provide information about the vehicle you want to purchase. You must provide the car’s year, make, model, vehicle identification number, level and additional vehicle feature information to the bank.
The bank uses the information determine the vehicle’s value and your loan amount. Find out if the vehicle has any extra features, such as alloy wheels, leather, a sunroof, side-steps or other options that increase the vehicle’s value.
If you apply for a loan through a dealer, it may electronically submit your loan to several banks at once. Expect letters from different banks regarding your credit application, but don’t be alarmed. A dealership tries to obtain the best possible rate for you by submitting your application to several banks.
Unless you want to use one specific bank, talk to your dealer about rate and bank options, multiple credit inquiries and your concerns before applying.