How to Apply for an Auto Loan

So you've found your dream car, now you just have to find a way to pay for it. Most people don't have that kind of money readily available, and that's where an auto loan comes in handy. Just follow a few easy steps and you'll be in your dream car before you know it.

Difficulty: Moderately Easy

Instructions

1. Decide on a price. It only makes sense that you can't get a loan for a car unless you know what you want to spend. Once you decide how much you can afford, it gets a little easier.

2. Try to get a copy of your credit report. There are a few web sites that offer this as a free service. It would be nice to know your score before applying for the loan, that way you already have an idea of what you'll be approved for.

3. Call your bank. Most banks can give loan rates solely based on your credit score and the year of the vehicle you want to purchase. Consult the dealerships to see if they can match those rates.

4. Be prepared for a bit of a wait. While many loan applications come back with a decision in just a few days, sometimes it can take up to a few weeks for all the paperwork to be processed.

Tips & Warnings

• Keep in mind, many banks are unable to do auto loans for a purchase of a vehicle that is more than ten years old
• Many banks do offer even better rates when you have other relationships, such as a checking or savings account.