What to Expect During the Car Loan Pre-approval Process

Posted: Friday, May 27th, 2016

When shopping for a car, the auto loan pre-approval process can be quite useful. While not required, it helps you know what you can afford before you start shopping. Read on to learn about the process Green Light Auto Credit will use to get you pre-approved today.

A Review of Your Credit Report

Your credit score is going to make a big impact on your pre-approval and loan options, but payment habits and your debt to income ratio are also going to play a part. You may get denied for a loan pre-approval if you have frequent late payments, collection accounts, or lots of debt on your credit history. If your credit score is below 680, you may qualify for a subprime loan, which will allow you to get a loan at a higher interest rate.

Proof of Income

You will not be pre-approved without verification of your income. You’ll be asked your gross monthly income or annual salary, and you’ll need to provide a recent paycheck for confirmation. If you are self-employed, be prepared to show income tax returns as proof of income. Other sources of income you can show are alimony, child support, disability income, or retirement income.

Getting Multiple Pre-approvals for Leveraging a Deal

You can go direct with a dealership for pre-approval, but that limits you to purchasing a car from that particular dealership. It’s usually a good idea to get pre-approval from a bank or loan agency as that can give you better leverage when purchasing a vehicle. Once you have a pre-approval letter, dealerships may try to beat the financing terms in order to win over your loan.

Let Green Light Auto Credit Help

Had trouble getting a loan pre-approval? Don’t have great credit? Want to shop for a car with confidence? Green Light Auto Credit is here to help. With an easy and painless loan application process, Green Light can help you take control of your car buying experience.

Trust Green Light Auto Credit to Guide You Through the Pre-approval Process on Your Next Auto Loan

Now that you’re familiar with the car loan pre-approval process, let Green Light Auto Credit arm you with pre-approval before you start car shopping. Contact us online or at 800-200-5551 to get started today.