Frequently Asked Auto Loan And Credit Questions

Are you interested in purchasing a pre-owned vehicle in Swansea, MA, but you aren't sure about how getting an auto loan works? You're not alone. Whether you're looking for a used car near Providence RI, you need a used truck near Cranston RI, or you'd like to purchase an affordable like-new SUV near Warwick, RI, our Empire Pre-Owned team is here to help. We've created a list of frequently asked auto loan and credit questions to help you purchase the pre-owned vehicle that fits you best.

What Does it Mean to Prequalify for a Loan?

Many dealerships have a pre-approved form that you can fill out. This form doesn't guarantee that you are approved for a car loan, but will determine whether you're a good candidate and show our team what type of creditworthiness you have. Most prequalifications require information like your financial situation, annual income, and any monthly payments you already have.

Why Won't It Affect My Credit Score to Prequalify?

Most prequalifications don't require a pull on your credit. This means that your credit score won't be affected. Some prequalification forms may do a soft pull on your credit, but not a hard pull, which is what will show up on your credit report.

What Paperwork Will I Need to Get a Loan?

While every lender is different, most used car loans require:

  • Proof of Identity - Driver's license, passport, U.S. visa, or other government-issued I.D. with a photograph and your name.
  • Proof of Income - Pay stubs, bank statements, W-2, verification of employment, etc.
  • Credit and Banking History - Social Security Number 
  • Proof of Residence - Mortgage statement, utility bill, lease agreement, etc. 
  • Proof of Insurance - Insurance card, insurance policy 
  • Trade-In Information - Vehicle information on any trade-in that you may have 
  • Method of Down Payment - Check, credit card, debit card, etc.

What is a Co-Applicant and Why Might I Need One?

If you have bad credit, then you may need to have a close friend or family member become a co-applicant. Co-applicants apply with you on the loan, using their good credit to show the lender that it's not a risky situation. If the customer defaults on their loan, the co-applicant will then become responsible for the car loan.

Can I Get an Auto Loan Even if I Have Bad Credit?

Yes! Good credit is always beneficial when it comes to getting a loan, but finding a loan with bad credit isn't impossible. There are multiple programs to help drivers with bad credit or no credit purchase a used car, truck, SUV, or van. 

Can I Get a Car Loan After Bankruptcy?

Yes! If you file for bankruptcy, it will be on your credit for seven to 10 years. While this is a deterrent for many lenders, some programs work with drivers who have a bankruptcy discretion on their credit. 

Can I Put Zero Down?

Yes! Not every loan or lender will allow you to put zero down on a car purchase, but there are some instances where they will. Of course, putting no money down will make the overall price of the vehicle higher, as well as the monthly payment and interest.

Can a College Student Get a Car Loan Without a Job?

Yes! College students can purchase a car without a job, but they will need either a good size down payment or else a great co-applicant.

If I Apply, Does That Hurt My Credit?

Yes and no. An application for a car loan will result in a hard pull on your credit score. This will leave a slight negative mark that will go away after a short while. Of course, getting a car loan may improve your credit score, so it's worth it.

        Contact Empire Pre-Owned To Learn More        

         Do you still have questions about your used car loan or credit? If so, don't hesitate to contact our Empire Pre-Owned dealership. Our team would love to help you however we can.