How to Qualify for an Auto Loan

When you know how to get a car loan, a lot of the anxiety that tends to come with car shopping will go away. Worried about qualifying for a car loan in St. Louis, MO or Belleville? Or maybe you want to ask, “What do I need to qualify for a car loan?” It might be easier than you realize. George Weber Chevrolet Company goes over the details of qualifying for a car loan and how to get the best interest rate available to you. By the end of this article, we hope you’ll be confident enough in how to get a car loan to apply for financing with George Weber Chevrolet Company and our lender partner, Capital One. 

What Do I Need to Qualify for a Car Loan?

For starters, you should consider the things that anyone needs to qualify for a loan from any of the financial institutions out there:

• Proof of Income: If you are looking at buying a car with financing help, 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. In most cases, bank statements and/or pay stubs will suffice, but in some cases, a lender may wish to contact your employer. 
• Proof of Insurance: Insurance is required by law, and it’s also required to get a car loan. You can usually purchase insurance at the dealership, but it’s also something that you can take care of ahead of time. 
• Identification: You need to be able to prove that you are who you say you are. While required, 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 the address that matches the one on your ID.
• Proof of Residence: Lenders need to have confidence that they can find you if needed. In most cases, a current utility bill will serve as adequate proof of your address.

Additionally, if you’re trading in your old vehicle to help finance your purchase, you will need that car’s title and registration so you can prove ownership of the vehicle. 

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

Qualifying for a car loan with more favorable terms depends largely on your credit score. That said, you can still secure financing with mediocre or even bad credit. While what qualifies as a “good” credit score can be subjective and varies by lender, having a good credit history can help you secure a lower annual percentage rate (APR) on your loan. Even if you have bad credit, though, many lenders will work with you, though you may need a co-signer or a willingness to accept a higher APR. 

Learn More About Auto Financing From George Weber Chevrolet Company

We hope this helps you understand how easy and stress-free qualifying for a car loan can be when you work with the finance team at George Weber Chevrolet Company. You can learn more about the specifics of automotive finance, like how to decide if you should buy or lease your next vehicle in Waterloo. Just visit the car-buying tips gathered by our finance department to take the anxiety out of buying a car.