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How online car loan approval works

Get approved for car loan from home to save on time and rates.

Finding a car loan online lets you to compare rates and find a good deal before you ever set foot in a dealership’s office. The online application process usually takes just a few minutes, and you’ll learn if you’ve been approved quickly. Plus you’ll be able to drive off in your new set of wheels sooner.

Compare top car loans you can apply for online

Name Product Filter Values Minimum credit score APR Loan term Requirements
No minimum credit score
3.9% to 27.9%
18+ years old, annual income of $4,000+, no active bankruptcies
Get pre-qualified for used car financing and receive competitive, personalized rates. Car Loans
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.
CarsDirect auto loans
No minimum credit score
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.
Auto Credit Express Car Loans
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.
Monevo Auto Loans
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.
Good to excellent credit
Starting at 0.99%
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. Car Loans
Starting at 1.89%
550+ credit score, no open bankruptcies, $24,000+ annual income, US citizen or permanent resident, 18+ years old
Get up to four offers in minutes through one simple application. Multiple financing types available including new cars, used cars and refinancing.

Compare up to 4 providers

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


  • Quick decision. An online application takes just a few minutes, and you’ll know if you’ve been approved for a loan shortly after.
  • Simplified negotiation. You won’t go into a dealership unsure of how much you can afford when you have an online loan. This makes negotiating the price simpler since you’ll know exactly how much you can pay for a car.
  • Easy comparison. The best part of shopping is comparing your rates. With online applications, you can compare rates from multiple lenders with the click of a few buttons.


  • May seem complicated. Being approved online adds an extra step to the already complicated process of buying a car, and it may not be worth it if you know your dealer has good financing.
  • Not always the best rates. Depending on your credit, a lender may not offer you the best rates. Be open to seeing what type of financing your dealer has before settling on an online loan.

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.

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