Will I be approved for a car loan?

How do I know if I’ll be approved for a car loan? I’m not sure what I need to have in order to take out a car loan so I don’t even know if I qualify.

Answer
Getting approved for a car loan can seem overwhelming, but there’s a few things to keep in mind to make it easier:
  • Have good credit. Most lenders base their loan rates largely on your credit. If you have bad credit or limited credit history, consider finding a cosigner to help improve your chances of approval.
  • Show verifiable income. To get approved for a loan, you’ll need to prove that you have a reliable source of income. Your lender may ask for pay stubs as proof.
  • Provide proof of residency. You’ll also need to provide proof of residence, such as a recent utility bill or a lease document.
  • Make a downpayment. Generally, car loans require a downpayment of some kind. Usually, lenders offer better terms to borrowers who can make a large downpayment, so you may want to save up before applying for a loan.
  • Provide proof of insurance. You’ll usually need to show the lender proof that you have car insurance.
With these steps, you should get approved for your car loan!
If you haven’t found insurance for your new car yet, check out the Jerry app. Jerry makes it quick and easy to find the best rates available on the insurance coverage you want. Just download the app and answer a few questions to see a comprehensive cross-analysis of the best car insurance policies that work for you and your budget. The average user saves $879 per year!
Liz Jenson
Answered on Dec 02, 2021
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating primary
4.7/5 Rating on App Store