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Pre-Qualify for an Auto Loan in Minutes

Applying for an auto loan is no longer a lengthy or complicated process in today's digital world. In fact, when you pre qualify for an auto loan, you will discover that your next vehicle is only a few clicks away.

What Does it Mean to Pre-Qualify for an Auto Loan?

Pre-Qualifying gives you an idea of how much car you can afford and your estimated interest rate. Your pre-qualification is based upon the financial information you provide and a soft credit check. The pre-qualification process doesn't take long, and you should receive a decision within a few hours or days depending on the lender.

Once you receive your pre-qualification letter, you can narrow down your vehicle search based on price. When you show an auto dealer your pre-qualification letter, they will take your search more seriously and better help you find a vehicle that fits your needs.

How Does a Pre-Qualification and Approval Differ?

A pre-qualification is designed to help you get an idea of the type of vehicle you can afford without completing the full auto loan process. Pre-qualifying for your loan doesn't guarantee that you will get an approval for your loan. Whereas, when you are approved for an auto loan, you have completed the full loan process, and the lender has determined that they are ready to provide you with an auto loan.

Benefits of Pre-Qualifying for an Auto Loan

Pre-qualifying for an auto loan improves your car buying process in several areas. Here are the 4 most significant ways you'll benefit from pre-qualifying.

Understanding the budget range for your vehicle and monthly payments based on your pre-qualification allows you to narrow down your search from the beginning based on what you can afford. Also, with an understanding of your financial expectations, you can focus on finding the vehicle with the right features and style for your needs rather than whether you will be able to afford it. Also, in some scenarios, you will be seen as a more viable candidate by dealerships, and they will take you more seriously in your search.

Auto loan pre-qualification gives you a leg up against other bidders who may have an interest in the same vehicle. Dealerships are much more likely to be open to sales or negotiations with buyers; they know they can trust and create more opportunities for those with an auto pre-qualification.

You still need to conduct some necessary research before buying a car. Still, auto loan pre-qualification drastically reduces the amount of time you spend searching, visiting, and evaluating vehicle options.

With auto loan pre-qualification, you're made aware of budget limitations, term lengths, and other essential factors that determine the bigger picture of your loan. This is especially important if you're looking to refinance an existing vehicle or purchase a car for the first time.

Getting online auto loan pre-qualification is an excellent advantage for any vehicle on any budget. With more negotiating power, a set budget, and peace of mind, you're better equipped to proceed with your purchase confidently and successfully.

Bypass Dealership Financing
Getting financing at the dealership will often cost you more than selecting a separate lender. When you pre-qualify, you won't have to worry about dealership financing.

Determine Whether You Need More Time
If you complete your pre-qualification and find that you don't qualify for enough or your interest rate is too high, you can put a pause on your vehicle purchase. Instead, you can take that information and improve your credit score or take other steps to secure a better auto loan. Then return to the process when you're ready.

3 Steps To Pre-Qualify For An Online Auto Loan

Pre-qualifying for an auto loan is simple and only takes a few easy steps. Here are the 3 steps you need to take to pre-qualify.

Find The Right Financial Institution
It's important to pursue auto loan pre-qualification with a trustworthy lender, like Best Reward, who offers the best benefits for your investment and keeps your best interest in mind. If you make inquiries with multiple lenders, make sure you compare rates, incentives and the APR to truly understand your loan amount.

Submit Relevant Information
Online auto loan applications are relatively simple to complete with the right information at hand. Most pre-qualification applications include fields regarding:

  • Preliminary Information
  • Loan Information
  • Personal Information
  • Employment & Income Information
  • Debts

Once you have completed the pre-qualification application in its entirety, confirm your submission.

Wait for Approval
Approval for auto loan pre-qualification will only take a few days at most. Loan officers will be in contact with you whether or not your application has been successfully approved.

Convenience Of Applying For An Online Auto Loan

Auto loans can be applied online or onsite, depending on whichever method is most convenient for you. However, there are many reasons to consider applying for your next auto loan using an online portal.

• Online auto loan applications can be processed much more quickly, with all relevant information aggregated into a single area. Auto loans applied for in-person may require more time to complete.

• Online auto loans are geared towards a holistic view of a borrower's money, credit report, and preferred loan amount. It's also possible that pre-approval applications are more likely to be approved online than in-person due to the lender's ability to evaluate unique factors such as utility payments or debt-to-income ratios.

• Online auto loans can be applied for at any time or in any location. A single device with an internet connection is all that is needed to complete and submit applications.

Benefits Of Credit Union Online Auto Loans

Many lending institutions exist for auto loan financing. There are at least four different institutions that offer auto financing options to consumers.

Car Dealerships may offer auto loans in one of two ways: working as a middleman with an approved bank or by financing directly through their company. Although this may be the most convenient option, fees and interest rates associated with dealership lenders are very steep and are often undesirable.

Banks may offer flexible pre-qualification options. However, hefty late fees and sizable interest rates may disqualify them from many borrowers looking for the best deal.

Private Lenders are less common, but still viable financing options. Missed payments or late transfers may result in interest rates that are too high to handle and may lead to serious financial damage.

In contrast to the above options, credit unions are by far the best choice for auto loans and refinancing. As not-for-profit institutions, credit unions are owned by members rather than a governing body. This community ownership helps to drive competitive rates and excellent service.

Looking For An Online Auto Loan? Get Pre-qualified Now!

Best Reward Federal Credit Union has never believed in second best. Our professional team is proud to offer superior auto financing services. Our auto loan pre-approval process was built with our members in mind, geared towards providing a smooth experience for all. Plus, you can get pre-approved and shop in one convenient location.

To capitalize on your auto loan pre-qualification, rely on the Best Reward Federal Credit Union team today.

Get Pre-Qualified