No one likes to waste time, especially not when you’re trying to get a new car loan. Luckily, there are a number of ways you can speed up the process of getting a loan for your new car.
Here are some tips which everyone, regardless of credit score or history, can use to save time when getting a loan:
1) Get your paperwork together. To prove your income, you’ll need your most recent paystub. To prove your residence, you’ll need your most recent phone, electric, or cable bill. Finally, if you have any credit problems like collections, bankruptcies, or leftovers from a messy divorce, get that paperwork together too. Put everything in an envelope and bring it with you when you go to see your lender - that way you’ll only have to make one trip.
2) Get your list of personal references together. When you apply for an auto loan, you’re usually required to give the name, address, and phone number of three or more friends or relatives that don’t live with you. If you get this information together ahead of time, you won’t have to scramble to figure it out while you’re completing your application.
3) Tell your boss, office manager, or human resources department at your work that you’re applying for an auto loan. They may receive a call from your lender to verify your employment, and if they’re aware of this in advance, they’ll be able to provide the information your bank needs more quickly and accurately.
4) If you have a trade-in, find out your exact payoff. Many times, when people apply for an auto loan, they estimate their trade-in payoff. The trouble with estimating your payoff is that your new lender may use your estimate as an exact value. If your payoff is actually substantially higher than you estimated, your loan may need to be re-approved for a higher amount. If your payoff is lower than you estimated, your interest rate might be higher than it should be. Save everyone some time (and yourself some money) and find out your exact payoff before you apply for a new loan.
5) Be honest! Your loan application may require you to list information about former residences, employers, etc. An accurate application will be processed quickly, but if you lie about your credit history, the lender will probably find out. This will lead to a long delay while the creditor goes through every aspect of your credit history, and may even result in your application being turned down.
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