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Applying For a Car Loan in a Tight Credit Market

The credit markets are tight these days and whether we realize it or not this affects all of us. What is noteworthy is that by following some very simple steps you can greatly enhance your chances of being approved for a loan. Here are the six things that matter most.

1. Complete personal information is key when applying for a loan. Make sure you have your current address and previous address if you’ve moved in the last two years. Make sure that you know your social security number for the application. Always have the complete information for your current employer and for your previous employer if you’ve changed jobs in the last two years. Have complete addresses and phone numbers for your employer(s).
2. Accurate income information is also a big help in securing a car loan. If possible, bring a copy of your most recent check stub with you to the dealership. This will make it easy for the finance department to correctly provide your income to the lenders.
3. Payoff information for you existing loan is also a big help when you apply for your new loan. If you bring the name of the lender and a copy of your most recent statement with you to the dealership, this will speed up the application process. If you have an existing loan and plan to pay it off by trading in your current vehicle the dealership will need to know this when they submit your loan application.
4. Review your personal credit history before you go to the dealership. You can do this by requesting a copy of your credit report from one of the three main credit bureaus. Our site has a link to one of the free credit report providers on it: Click this link and look for the free report offer on the right hand side of the page. Once you have your report make sure that all the information on it is correct before you head to the dealership.
5. Plan on putting some money down for your new vehicle. Putting between 10% and 20% down on the vehicle purchase will improve the loan programs that you will qualify for. This means that the interest rate and term of the loan will be more favorable to you, not to mention the fact that it will lower your monthly payments.
6. Find the car you want before you apply for a loan. You can browse almost all of the used car inventory and much of the new car inventory online these days. Sites like ours list vehicles for sale by dealers and by individuals online, and the listings are current to the previous day’s sales. Having the car picked out when you apply allows the lender to see the type of collateral that they will be making the loan for. Collateral quality affects the terms of the loan just as much as the other things mentioned here.

Remember that tight credit markets don’t mean you can’t get a fantastic deal on a new or used vehicle right now! The dealers are anxious to earn your business in these times and so there are some great deals to be had. Car dealers have access in most cases to hundreds of lenders that want to lend you money for your vehicle purchase. Use the dealer who has great connections that you can take advantage of. You can find most of the inventory for franchised and independent dealers on our site at Find the car you want and make a deal!!

For more posts by EveryCarListed, check out the blog at

Views: 23

Tags: Car, Loans,


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