Tips for Easy & Quick Process on Auto Loan Approval

Posted Monday, Oct 03, 2022

According to a study conducted in March 2020, Americans had taken out $1.3 trillion in auto loans. These loans are a great way to get a car for people who do not have enough to pay for a car upfront. With the increase in car prices, more people will likely apply for auto loans, but the process can be complicated and slow.

This article will go over tips for quick process approval for you to follow before going to a car dealer. Read below to find out more

How to Get Quick Approval Process

Quick Process on Auto Loan Approval

The financial stress of buying a car can take its toll on your mental and physical health. Auto loans provide a better alternative than worrying about your finances. Below are some tips to follow to get a quick process for your car loan approval.

1.  Evaluate Your Finances Before You Apply

Before applying for a car loan, evaluating your finances and preparing a budget would be best. You must ensure that your financial goals and monthly payments do not contradict.

Generally, your monthly car loan payments should not account for more than 20% of your monthly income. You will also have to consider the money for a down payment. A down payment can vary depending on your agreement, but the lower the down payment, the greater the end price you would pay.

Since a lower down payment means that you would have to make greater or longer monthly payments, the annual interest rates will increase the price you have to pay on top of the price of the car.

Additionally, you will have to consider the post-buying processes, which include registration, insurance, and maintenance.

2.  Check and Improve Credit Score

A good credit score is one of the best ways to get a quick process of a car loan approval. You must determine your credit score a few months before applying for auto finance. A good credit score can lower your interest rate and increase your chances of getting approved.

A credit score depicts your ability to make payments. Your bank can provide your credit report. Once you know your credit score, you must work on improving it. Generally, a credit score above 690 is a good score for car loans.

3.  Confirm Auto-Finance Requirements Before You Apply

Lenders vary in their car loan requirements. While some basic requirements remain the same, most lenders differ in their specifics, and you must thoroughly assess the requirements of the auto finance you are applying for.

You can find dealerships to help you get a car loan. For example, Olympic Auto Sales has relations with multiple lenders and works with all situations and credit scores, working hard to ensure you get approved for your car loan.

4.  Get Pre-Approved

An auto-finance pre-approval means that a lender has reviewed your application and credit report. For most car loan applicants, this is done after they have decided on a car. However, with pre-approval, you can get half of the work done early.

Getting a pre-approval does not mean you got your loan, and you will need to apply for a car loan once you have chosen the car you want. Most pre-approvals are valid for around two months, so you must be careful when applying.

There are many benefits of getting pre-approved for car loan, including:

  • It helps greatly with the approval process for your auto finance
  • It will help you understand what you can afford to work within your budget.
  • You can better assess different rates.

To get a car loan pre-approval, here are some things you must do beforehand:

  • Gather all necessary documents, including your identification documents, tax records, and social security number.
  • Determine your credit scores since many lenders have a minimum credit score requirement.
  • Apply for pre-approval. You can do this online here.

You might not get pre-approved due to various reasons. Some of these reasons include:

  • A low credit score
  • Unstable employment history
  • Application mistakes
  • Low income

However, not getting pre-approved does not mean you can not apply for a car loan. Instead, you get a chance to improve your application

Factors that Influence the Time Taken For a Car Loan Approval

Car loan approval can take a long time, and with prices increasing daily, you must get yourself approved as soon as possible. Below are some reasons why a car loan approval can take time and what you must know to get a quick approval process.

1. Eligibility Check

The first step to getting a quick process approval is to fall into the lender's eligibility criteria. To meet the basic criteria, you will need to be a citizen or a permanent resident, be of legal age, have the minimum required credit score, and be able to provide proof of employment.

Many lenders differ in their eligibility criteria, but a good way to speed up the process is by getting pre-approved.

2.  Credit Check

A credit check has to be carried out to assess your loan term. This can take some time since the lender will thoroughly check your creditworthiness.

3.   Supporting Documents

Once you have passed the above two checks, the lender might ask you for additional documents to further assess your loan terms. This includes your employment and residential history and a background check on your co-buyer.

Contact a Dealer Today

If you need a quick process approval for auto finance near Decatur, GA, contact Olympic Auto Sales. Our dealership has been working on getting customers their dream cars and quick process on auto loan approvals for over thirteen years. You can get a wide range for your car at the best prices.

Olympic Auto Sales offers many financial options, including Buy Here Pay Here (BHPH), bad credit auto finance, and an online application for auto loan and used car financing.

Call us today at (404) 299-6566 or visit them at 4568 Memorial Dr. Decatur, GA 30032 between 9:00 am and 6:00 pm.