How online car loan approval works

Compare top car loans you can apply for online

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Name	Product	Filter Values	Minimum credit score	APR	Loan term	Requirements
Carvana			No minimum credit score	3.9% to 27.9%	Varies	18+ years old, annual income of $4,000+, no active bankruptcies	Get pre-qualified for used car financing and receive competitive, personalized rates.	See your rate More Info	Compare	loading Fetching your data...
car.Loan.com Car Loans			300	Varies by network lender	Varies by lender	Must be a US citizen with a current US address and employed full-time or have guaranteed fixed income.	Apply with a simple online application to get paired with a local auto lender. No credit and bad credit accepted.	See your rate More Info	Compare	loading Fetching your data...
CarsDirect auto loans				Varies by network lender	Varies by network lender	Must provide proof of income, proof of residence, and proof of insurance.	Save time and effort with this lending service specializing in beginner-friendly or subprime car loan.	See your rate More Info	Compare	loading Fetching your data...
Auto Credit Express Car Loans			300	Varies	Varies	Must be employed full-time or have guaranteed fixed income of at least $1,500/month and be a current resident of the US or Canada.	Get connected with an auto lender near you, even if you have bad credit.	See your rate More Info	Compare	loading Fetching your data...
Monevo Auto Loans			500	3.99% to 35.99%	3 months to 12 years	Credit score of 500+, legal US resident and ages 18+.	Quickly compare multiple online lenders with competitive rates depending on your credit.	See your rate More Info	Compare	loading Fetching your data...
LightStream Auto Loans			Good to excellent credit	Competitive	2 to 7 years	Good or excellent credit, enough income or assets to afford a new loan, US citizen or permanent resident, 18+ years old	Quick car loans from $5,000 to $100,000 with competitive rates for borrowers with strong credit.	See your rate More Info	Compare	loading Fetching your data...
LendingTree			Good to excellent credit	Starting at 3.09%	Varies by lender	18+ years old, good to excellent credit, US citizen	Compare multiple financing options for auto refinance, new car purchase, used car purchase and lease buy out.	See your rate More Info	Compare	loading Fetching your data...

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How does online car loan approval work?

Being approved for a loan online is much like being approved for a loan when you visit the physical location of a lender. You fill out the necessary paperwork and wait to see if you’ve been approved.

After the lender agrees to finance your loan, it’s time to walk into a dealership and start negotiating for a car. You’ll already know how much you can borrow and the interest you’ll have to pay, so you won’t have to rely on the dealer to give you a good rate.

What do I need to know before I apply?

Before you apply, you generally to know how much you can afford to borrow and have and what type of car you’re looking to finance. You can use our monthly payments calculator to find out how much you have to put forward month-to-month

If you’re qualified lenders can offer you a pre-approval that lasts up to 30 days. This gives you time to search for a car and solidify your choice before committing to the loan and starting payments. Otherwise, you can often have the funds deposited into your account by the next business day.

How to compare online car loans

Car loans are offered by banks, credit unions and independent lenders. With so many options on the market, it can be hard to know which one to choose or where you should start. Review these tips to help you find a loan that suits your individual needs.

• Application process. Some lenders have systems that can analyze your application quickly and provide an answer in very little time. Others might not.
• Down payment. The amount of your down payment can impact the rates a lender can give you as well as how long you need your loan to last. So the more the better. You can even use a trade-in car as part of a down payment.
• Total cost. The total cost of a loan is included as the APR. If you compare two loans for the same amount, interest rates and fees affect the total cost of the loan.
• Documents needed. Will you need to fax a copy of your auto insurance or your driver’s license? Can these things be verified online, saving you time? These factors should help you determine which lender you’d prefer to go with.
• Dealership connections. If you’ve decided to go through a car loan connection service, research the dealers it partners with to make sure you’ve found a reputable source that you’re comfortable buying from.

Compare online car loans

How to apply for an online car loan

Every lender is different, but these are the basic steps you’ll need to follow when submitting a loan application:

1. Browse the table above and find a lender that fits you.
2. Click the Go to Site link to be redirected to the lender’s website.
3. Fill out the application with your personal and financial information.
4. Submit your application.

Most lenders will be able to tell you if you’ve been approved within a few minutes. You can view the interest rate and potential fees before you sign the loan contract. This makes it easy to compare loans.

Once you’ve decided on a loan, sign the necessary documents and submit. You’re ready to step into a dealership with financing to back you up.

Pros and cons of getting an auto loan online

What to consider before agreeing to the loan

• Fees and taxes. Generally, the price your dealership asks for doesn’t include costs like sakes taxes and registration fees. Make sure you consider these costs before applying for a loan.
• Balloon payments. Some car loans come with low repayments for several months and then one large balloon repayment at the end. Make sure you’ll be able to comfortably afford this to avoid refinancing.
• All financing options. Getting a car loan online is easy, but you might also want to consider what your dealership has to offer and even personal loans to make sure you’re getting the best deal that’s available to you.

Compare online car loans

Bottom line

Finding approval online doesn’t have to be a time-consuming process. With a few clicks, you could be well on your way to financing your next auto purchase. Before you do, compare multiple auto loan offers and read up on what you should expect.

Frequently asked questions

• What type of interest rate should I expect?

  The interest rate depends on your credit and whether you’re purchasing a new or used car. Rates range anywhere from 2.5% to nearly 20%. Comparison is crucial at this stage to find a good rate.

• What should I do when buying my first car?

  These steps should help you make your car purchase easier.

  • Organize your finances so you know how much you have to spend.
  • Research your vehicle and find a reputable dealer.
  • Take the vehicle for a test drive and check the car’s history.
  • Ask the dealer questions about the price and the car.
  • Negotiate until you feel you’ve reached a fair price.

  Tips for getting your first auto loan

• Can I get preapproved for a car loan?

  Yes. Many lenders will preapprove your auto loan application and allow you to finalize it later. This often comes with a soft pull on your credit so your score won’t be affected while you’re searching for the right financing.