Things You Need to Get an Auto Loan

Prior to applying for an auto loan, you'll want to have done your proper research, compared auto loan lenders, and have the appropriate documents when you apply. Doing so can help you get approved for your loan quickly!

Typically, lenders look for proof that you're not a credit risk and that you'll be able to repay the loan on-time. With your credit score and report, this information will heavily factor into the interest rate you might be offered. 

The documentation you need to bring to the bad credit auto loan lender may vary. It's advised you go over this basic list and have these documents in hand so the car loan application process goes smoothly. 

1. Proof of Identity - Identification for customers is required by law. In most circumstances, your government-issued ID with your photograph and residence will be requested. For most, this will either be a driver's license or a passport. 

2. Proof of Income - When applying for an auto loan, most reputable lenders will want to determine your ability to repay the loan. Auto lenders assess income, assets, employment, credit history and monthly expenses. Pay stubs from the last month, showing the total of what you've been paid year to date or bank statements will suffice this required document request. 

3. Credit History - Financing through the dealership means their working with multiple lenders. Each has its own credit score and loan-to-value requirements. Because of this, it's highly likely dealers will look at your credit history in its entirety. Lenders look at your previous credit history to determine if you have late payments, unpaid bills, along with debt obligation totals. 

4. Proof of Residency -  Federal law required auto lenders to gather information on your residence, as well as proof of that residence. If your driver's license is current, this may be sufficient enough for most dealers. 

5. Vehicle Information - If you're buying a new vehicle, a complete bill of sale, purchase agreement or buyer's order will need to be obtained or completed. It should include the car purchase price, VIN number, year, make, and model.. 

6. Proof of Insurance - Once you've signed the bill of sale, you'll be asked to provide proof of insurance. It must comply with state laws and meet any additional requirements of the lender before you're able to drive off the lot. Learn more from https://www.encyclopedia.com/social-sciences-and-law/economics-business-and-labor/money-banking-and-investment/loan