Whether or not you can get approved for a car loan over the phone largely depends on your credit rating. If you have very good to excellent credit, getting a quick approval over the phone shouldn't be a problem. However, if your credit is less than perfect, it will probably be necessary to meet with a finance manager at a dealership in order to be approved for financing.
Getting Approved for a Car Loan with Good Credit vs. Bad Credit
If you have good credit and want to get pre-approved for a car loan before visiting a dealership, the process should be pretty simple. You can call your bank or credit union and initiate the application process. Or, you can visit the appropriate website and apply online.
Of course, you will eventually be required to sign some paperwork. But even this may be done remotely if your lending institution is willing to electronically transfer the necessary documents. You can eSign the paperwork from home and then move on to selecting the car you wish to purchase.
On the other hand, if you have bad credit, it's likely that car loan approval won't come as quickly or easily. With a lower credit score, you’ll have a better chance of getting your vehicle purchase financed if you work with a dealership with connections to special finance lenders. These types of lenders are able to approve car buyers with bad credit by taking other factors into consideration.
Instead of focusing solely on credit history, a special finance lender will look at your income, job history, residence stability and existing debt. Basically, the lender will want to verify that you're capable of making payments on a loan. They may also want some background information about your credit situation.
So, the good news is that getting approved for a car loan with damaged credit is entirely possible. The bad news is that you probably won't be able to get a nearly instant approval over the phone. This isn't to say, however, that you'll have to deal with a lengthy process that will take days to complete. Once you've located the right kind of dealership, there's a good chance that you can get your approval and your car on the very same day.
How to Make Bad Credit Car Buying Faster and Easier
How easy can it be to get approved for a bad credit car loan? Well, if you find a dealership that can work with bad credit, the process is pretty simple. First, you'll meet with a finance manager. Here, you'll verify your income, identity and proof of residence with your recent paycheck stubs, valid driver's license and a utility bill that is addressed to you.
Next, the finance manager will come up with an affordable monthly payment. With this in mind, you'll shop the lot with a salesperson and find a vehicle that fits both your needs and your budget. After you've picked your car, you'll simply sign the papers and drive.
To make this process go even faster, you can apply with CarsDirect, and we'll locate a dealership in your area that is trained in special financing. We've already assisted thousands of car buyers with credit issues, and we'll help you take the first step toward your new or used car, truck, van or SUV today. Just take a minute to fill out our simple and secure 1-Step Auto Loan Application, and you'll be on your way.