What are the steps to get preapproved for a car loan?

I've been eyeing a few cars because some dealers in my area have some great deals. My mom told me I should get preapproved before shopping. What are the steps for preapproval?

Answer
Getting preapproved for a car loan lets you know how much you can spend on your car, as well as what you can expect to pay per month or in interest. That’s why it’s so important to get a preapproval.
The good news is that preapproval is a straightforward process:
  • Check your credit report to see your credit score and take care of any delinquent accounts or pay the debt
  • Shop around to find the best interest rates
That’s pretty much it. Getting a preapproval is a good idea because it allows you to stick to a budget, simplify negotiations with the dealer, save time and hassle, and compare interest rates.
Don’t forget you’ll need full-coverage car insurance along with your car loan. Use the Jerry app to compare rates and find the coverage you need at the best price.
Eric Schad
Answered on Nov 16, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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