Online Car Loans

The process for getting an online car loan is similar to the process for getting a loan at your neighborhood bank branch or a car dealership. If you have good credit and a secure income you can get an online loan approved in minutes. If you have less than perfect credit or have changed jobs recently an online loan approval may take more time to arrange. The advantage of an online application is you can apply for your loan at a time convenient for you from your home.
The Federal Trade Commission offers tips to ensure your online financial information is secure.

1. Use a secure browser that encrypts or scrambles the information you send online.
2. Check the privacy policy of the lender’s site you are applying on. Make sure the policy states they will not share your information with others and that they ensure the security of the information you submit.

Choose the lenders with a reputation for fair dealings and competitive rates. If you know you have some credit history problems look for a lender that specializes in subprime or bad credit loans. Most lenders will not charge a fee to review your loan application. It is usually a good idea to apply for a loan with more than one lender so you have the opportunity to compare the loan terms offered by the lenders.
Before you start the online application process gather the documentation you will need to complete the application. For example, you will be asked when you complete an online car loan application for details about your current address (if you have lived at your current address a short period of time you may also have to provide your prior address, your employment history and present employment including your current salary, other sources of income like child support and for personal references. If you have already chosen a car you may be asked for the car’s VIN number.
You may be asked to mail the online lender additional documents such as a recent pay stub (if you are self employed the lender may want copies of your most recent tax returns), a copy of your driver’s license and proof of  your automobile insurance.
Many car buyers like to apply for a car loan before they have chosen a car so they have a good idea of how much they can afford to pay for a car. It is optimal if you can put a 20% down payment on the car. A 20% down payment will help ensure you get the most favorable interest rates for your credit history. You can finance a car with a smaller down payment but you will likely pay a higher interest rate and since you are barrowing more you will pay a lot more in interest over the life of the loan.