Online car loans

Applying for a car loan online allows you to compare lenders and speed through the application process. But to avoid hurting your credit score, only submit a full application to the lender you’re most interested in.

How do I apply for a car loan online?

To apply for a loan online:

1. Fill out the online application. This will likely include giving the lender information about yourself, your finances, your credit and the car or loan amount you’re interested in. Be honest and make sure you provide accurate answers to avoid any trouble later on.
2. Gather supporting documentation. You may be able to upload your documentation directly to the loan application, or you may need to fax or email them in.
3. Wait for the lender’s decision. Once you’ve submitted your application and supporting documents, your lender will either notify you of its decision or ask for further information. In many cases, lenders can give you approval or preapproval almost instantly after submitting an application while supporting documents and other requested information are still pending.
4. Review and sign the contract. If approved, your lender will send you a loan contract for review. This contract contains vital information including your loan term, repayment schedule and interest rate, so take your time reviewing it. After reviewing, if you’re comfortable with the terms, you’ll sign the contract and return it to your lender, who will then distribute the funds to the vehicle seller.

Compare a range of online car loans

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Name	Product	Filter Values	Minimum credit score	APR	Loan term	Requirements
PenFed Auto Loans			Varies	Starting at 1.79%	3 to 7 years	Active membership with PenFed	Low APR car loans from a well-known credit union.	Go to site More Info	Compare	loading Fetching your data...
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.	Go to site 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.	Go to site More Info	Compare	loading Fetching your data...
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.	Go to site 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.	Go to site 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.	Go to site More Info	Compare	loading Fetching your data...
LendingTree			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.	More Info	Compare	loading Fetching your data...
myAutoloan.com Car Loans			550	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.	Go to site More Info	Compare	loading Fetching your data...

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What do I need to apply for a car loan online?

The information and documentation you need to complete the application will vary by lender. But in general, you should have the following on hand:

• Personal information. This includes information such as your driver’s license number, contact information, income and residential status.
• Employment information. This includes details regarding your employment history to help your lender assess your stability as an applicant.
• Requested loan details. You’ll need to provide your requested loan amount along with your preferred method of repayment.
• Driver’s license or certified ID. Your driver’s license or other valid identification is used as proof of your current address and to help your lender conduct a credit check.
• Proof of income. These include bank statements, pay stubs, financial statements, rental income statements or anything else serving as proof of the income declared on your application.
• Proof of insurance. Depending on the lender, you may be required to provide proof of insurance on the car you plan to purchase.
• Vehicle details. Some lenders may ask you for information about the vehicle you’re planning to buy — including the make and model — as well as the seller’s asking price, name of business and address.

Pros and cons of applying for an online car loan

What cautions should I avoid?

When applying for any car loan — online or in person — try to avoid the following:

• Getting into too much debt. Since car loans involve a lengthy financial commitment, make sure you can afford the repayments required by your lender.
• Getting mixed up with shady sellers. Avoid any seller that tells you to falsify information on your loan application. Not only is it illegal, but you carry all the risk while the seller carries none. In addition, make sure you’re fully aware of the car’s condition before buying it. Have any used car you’re interested in inspected by a mechanic not connected to the seller.

Bottom line

Applying for a car loan online is easy, but that doesn’t mean it’s a good idea to apply for multiple loans at once. Instead, compare your options before getting started and only apply to the lender you’re most interested in.

Frequently asked questions

• Can I still qualify with bad credit history?

  Possibly — there are lenders that specialize in car loans for poor-credit borrowers. However, these usually come with significantly higher rates and less flexible terms.

• Can I still qualify with an insufficient income?

  It depends on whether you’re able to prove you can pay. If you’re in this situation, you may still be able to qualify by using another asset as additional security for your loan. You can also ask your lender if you could use a cosigner.

• What happens if I default on my payments?

  Since you’re likely to be required to put up your vehicle as security for your loan, your lender will have the right to seize your vehicle if you default on your payments.

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