What Requirements are There to Get an Auto Loan?

Couple buying a car

Before you can take that brand new car on the roads of Mesa, you need to secure financing! So, what requirements are there to get an auto loan? The process may seem intimidating, but it’s actually very simple when you have the right documents in place. And while your credit background will influence the terms of your particular financing package, anyone can secure a fantastic deal at Cactus Jack's Auto – even if you have no credit or bad credit!

What Do I Need to Qualify?

Before you can qualify for your car loan, you have to prove yourself to be reliable and trustworthy. This means you’ll need to gather the following documents before you head to the dealership:

  • Proof of Income: You’ll need to prove to the lender that you can afford your new vehicle, so some sort of proof of income is required. Bank statements and pay stubs are a good bet, but some lenders may ask to contact your employer.
  • Proof of Insurance: You can’t hit the roads of Surprise without insurance, so be sure to have your paperwork in order. If you don’t have insurance yet, you can also purchase it at the dealership.
  • Identification: Bringing two forms of identification is a good bet. A driver’s license is a popular choice, but a utility bill or bank statement is also a solid supplementary option.
  • Proof of Residence: Lenders need to know where to find you in case of an emergency. A piece of official mail with your address is the most common proof, like a utility bill.
  • Title and Registration: Trading in your old car? Don’t forget your old paperwork!

Do I Need Good Credit to Get a Car Loan?

Anyone can secure an affordable car loan, even if you have poor credit. That said, a good credit score does make the process easier. Unsecured auto loans typically require a good credit score, but secured auto loans remain an affordable option for drivers with a few blemishes on their credit history. Lenders are more likely to loan out money and you’ll probably enjoy better terms, like lower annual percentage rates (APR). But the definition of “good” credit varies from one lender to the next. And even if you have bad credit, you can find a lender who will work with you. Just be prepared to find a co-signer or accept a higher APR.

Find Out More About Auto Financing

If you’re in the Glendale area, visit Cactus Jack's Auto in neighboring Phoenix to learn more about your options for auto financing. And if you’re new to the auto finance world, check out our tips for first-time car buyers. If your car was recently repossessed, read our guide to see what your next steps should be and what happens when a car is repossessed.

Cactus Jack's Auto 33.5101018, -112.1115231.