5 Tips for Quick Auto Loan Approval

• Posted on Autos.com Editor
• in Auto Loans
• on October 7, 2013

Some car shoppers end up looking for quick auto loan approval to facilitate their purchases in a short period of time. These days, it’s possible to get very rapid auto loan approval using some of the newer methods available to potential car buyers. Here are some of the ways customers get a lightning quick auto loan process from car loan lenders and get behind the wheel in a lot less time.

1. Know Your Credit Score and Financial History – When lenders create unsecured auto loans (loans not backed by collateral), they primarily use a customer’s credit and financial history to assess risk. Knowing your credit score up front and clearing any negative details in your financial history will help speed up your auto loan approval process. Keep in mind that a credit score of 680 or more will generally be your ticket to approval.
2. Show Assets – When you are in negotiation with a lender about an auto loan, showing assets can be a way to expedite the process or provide you with more options. Customers with assets can pursue a “secured auto loan” option where collateral can decrease the risk for a lender, and lead to a speedier process.
3. Use Online Loan Applications – One of the biggest tips for getting a rapid auto loan approval is online. Customers who use the vast variety of online loan applications available from large and small lenders can often get approval in as little as one hour, where a form might take only 15 minutes to fill out. It’s worth looking at a number of these loan approval venues to see what kinds of favorable terms you can be eligible for.
4. Look Into Pre-approval – Some lenders offer pre-approval options, where a less formal authorization for an auto loan precedes the search at local dealer’s lots. In these cases, financing can be done in steps, and after a customer finds out the details on their desired vehicle, they can finalize the deal with the third-party lender, with the preapproval in hand for a quicker final process.
5. Consider a Co-signer – In some cases, getting a co-signer can be a way to get quicker car loan approval. However, that individual’s credit will be tied to the loan, and this can sometimes present issues between family members. Trust is an integral part of a co-signer arrangement, and some situations may be more compatible with this kind of deal than others.

Use the above to broaden your options for a quick car loan approval, and to get into your desired vehicle in a shorter time period. Although speed can be desirable in any car loan approval process, it’s also very important to look at the terms of a deal. Read the fine print before going through with a car loan to know exactly what you are responsible for. Good research on a loan agreement will help customers to avoid the pains of repossessions, charge offs or underwater loans.