How can I get preapproved for a car loan?

Before applying for a car loan, you should check your credit using online tools like Credit Karma or Experian. This will help you know the current state of your credit and how you'll look to potential lenders.

To get preapproved for a car loan, you generally need a credit score between Good (670) and Exceptional (800-850) to have a good chance of approval, according to Experian. Lenders use several different credit scoring models to check an applicant's creditworthiness. Knowing your FICO credit score can give you a good indication of your chances of getting approved. The Consumer Financial Protection Bureau reports that FICO scores range from 300-850. The higher your score, the greater your chances of qualifying for a loan and getting a favorable interest rate.

Does getting preapproved for a car loan affect your credit score?

No. Getting preapproved will not hurt your credit score, according to Chase Bank, because preapprovals only require a soft credit inquiry, which, unlike a hard inquiry, will not affect your credit score.

A higher credit score will make your loan application more appealing and help you get preapproved for more financing or better terms.

Before applying for an auto loan pre-approval, gather documentation about your income and debts that a lender may need to see. These include recent pay stubs, bank statements, and potentially two years of tax returns if you’re self-employed.

Before applying, the last step is to check around for a lender and loan offer that makes the most sense for you. Some lenders serve borrowers in particular areas or specialize in borrowers with specific credit profiles. Research different providers to see which one offers the best interest rate and terms that suit your financial needs.

When securing financing, it's a good idea to see how much your monthly car payment would be for different loan amounts. Use our monthly car payment calculator to estimate your payments.

Once you've chosen a lender, you'll need to complete an application and submit documentation for yourself and any cosigners. Your lender may request additional information, which you'll need to provide before they can process your application and complete your pre-approval.