How Do You Get Car Loan Approval?

When it comes to getting car loan approval, where do you turn? If your credit was sterling silver, you probably would not even be concerned about it because you would easily qualify for the best car loan rates that are available from any dealer.

But if your credit rating shows a few signs of battle bruises or maybe is a bit tarnished around the edges, you likely do not fall into the "qualified buyers only" caveat that accompanies all of those great new car commercials on TV. Does that mean you are out of luck when it comes time for a car loan approval?

Not at all. There are many companies who are setup specifically to address this growing segment of the population, especially as banks tighten their lending policies and getting a car loan becomes increasingly more difficult for the general population. Car companies are trying to help wherever they can since selling cars has dropped to all time new lows and they need to keep moving those cars in order to keep the auto industry healthy. But if consumers cannot get car loans, the car manufacturers are not going to be moving inventory, and the whole thing turns into a very vicious circle.

So if you have less-than-stellar credit, can you still get car loan approval, even in today's tough economic times? Yes you can but you are going to have to research the more non-traditional places of getting that loan approved. You may not get approved at the dealership or through the auto manufacturers themselves, and you may not get approved by your local bank.

But with a bit of research, you can get approved by a host of other places who are catering to this group of people. Their stipulations and policies for the type of credit rating that you must have is significantly more relaxed than the rules in place at your local bank.

What you should do as a first step is get copies of your credit report from each of the credit bureau reporting agencies. You can get this for free once annually. Go over it with a fine tooth comb and find any items that may tarnish your credit rating, then have an explanation ready. You see, many of these loan companies look beyond just the raw numbers and are willing to talk with you about the reason why you had a rough financial time during that two year period or whatever the case may be. Don't come up with some sob story off the top of your head and don't lie about it, just be honest about it, and emphasize the more recent trend towards keeping your credit score in good shape.

You can get car loan approval faster than you think. Make sure the car is within your budget realistically and you can afford it, and you could be driving that new car sooner than you thought possible.

By Jon Arnold