What Do You Need To Finance a Car? Everything You Should Bring
Written by
Taylor Milam-Samuel
Edited by
Elizabeth Constantineau
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Buying a car is exciting, but it can also feel overwhelming, especially as you navigate financing. The good news is that there are some simple steps you can take to prepare ahead of time. Dealerships and lending companies require you to provide various documents to approve you for financing.
By preparing in advance, you can save yourself an extra trip to the dealership and lower your stress. Here’s what you need to finance a car, including credit scores, income and loan eligibility.
Basic Requirements for a Car Loan
What do you need to finance a car? In most cases, lenders will look for a few key things before approving your application. Here are the basic requirements you should be ready to meet:
- Solid credit score:
- Most lenders require a credit score of at least 600. The higher your score, the better your interest rates.
- Your interest rate is how much you have to pay to borrow money — a lower rate means you pay less.
- You can view your credit report at AnnualCreditReport.com to check for errors and learn more about your score before you apply for a loan.
- Stable income:
- Lenders usually ask for proof of income to ensure you can afford the loan payments.
- You typically need to provide documentation of your income, such as pay stubs, tax returns or Social Security statements.
- Valid identification:
- You’ll need to prove your identity with a government-issued ID, like a driver’s license.
- Down payment:
- You might need to provide a down payment as part of the loan approval process. It’s not always a requirement, but it often is if you have a low credit score.
Documents Needed for a Car Loan
You’re probably wondering, “What documents do I need to finance a car?” The truth is that you need to provide a lot of documentation when you apply for a car loan. The process is similar to other loan applications and financial transactions — the company must confirm your identity and ability to repay the loan.
You should gather the following car loan documents as you prepare for the loan application.
Proof of Identity
The first step is for the lender to confirm your identity with a government-issued ID. You can provide your driver’s license, passport or non-driver ID. Make sure you bring the original identification card instead of a copy.
Lenders also ask for your Social Security number as more proof of your identity.
Proof of Income
Lenders want to confirm that you can repay the car loan before approving your application, so you must provide proof of income.
You can usually bring one or more of the following documents as proof.
- Pay stubs
- Tax returns
- Social Security documentation
- Bank statements
- Proof of payment from side gigs, rental income or other sources
Proof of Residence
You might need proof of where you live when applying for a loan. It’s not always a requirement, but it’s a good idea to gather the documentation just in case.
You can bring a utility bill with your name and address. For example, you can get a paper or digital copy of your electricity, water or internet bill. Lease agreements or mortgage statements can also work.
Proof of Insurance
You must have car insurance for your new vehicle before driving away from the dealership lot or third-party seller. You can purchase a policy for the new car or update your existing policy to include the vehicle.
Show your insurance card as proof of insurance. You can usually find a digital copy of the card when you log into your account. Some insurers also mail paper copies of the card.
Credit History and Score
Lenders check your credit report and view your score to determine eligibility and terms for auto loans. The check is digital, so you don’t need to bring any additional documents. But it’s usually a good idea to check your score beforehand so you know what to expect.
Some lenders might request credit references if you have a low score, but it’s rare.
Vehicle Information
When you apply for financing from a bank, you must provide the vehicle information. You typically need the following information, which you can ask the seller for.
- Vehicle identification number
- Make and model
- Odometer reading
You must also provide the title and registration if you’re refinancing your car loan, but that’s different from applying for the initial loan.
Requirements for a Car Loan from a Bank vs. Dealership
You can get a car loan from a bank or dealership. The loans are the same — installment loans with monthly payments, fixed interest rates and minimal fees. But depending on your situation and finances, one option might be better.
Here’s a look at some of the differences between the loans so you can determine which one is the best fit.
| Requirement | Bank Auto Loan | Dealership Financing |
|---|---|---|
| Credit Score | Usually 600 or more | Might approve scores lower than 600, but at higher rates |
| Down Payment | Yes | Typically, but not always |
| Approval Time | 1 to 5 business days | Same day or one business day |
| Interest Rates | Depends on your credit, usually around 7% | Might be higher, especially for bad credit |
| Loan Term Options | Fixed rates and terms | Fixed rates and terms, but more likely to have promotional financing |
Car Loan Application Checklist
Use this checklist to make sure you’re prepared before applying for a car loan — it can help speed up the process and prevent delays.
Requirements:
- Minimum credit score of around 600
- Steady, verifiable income
- Government-issued photo ID
- Down payment
Documents to bring:
- Valid ID
- Social Security number
- Proof of income — pay stubs, tax returns, bank statements
- Proof of residence — utility bill or lease/mortgage statement
- Proof of car insurance
- Credit references, if requested
- Vehicle details
- If refinancing, bring title and registration
Final Thoughts
Gathering your documents and preparing ahead of time is the best way to navigate the car loan application process. Preparing the documents needed for a car loan is quick and can save you time on the day you buy.
But here’s the deal — different lenders have different requirements, so it’s always a good idea to check with each lender and compare options. Improving your credit score and comparing pre-approval offers from several lenders helps ensure you get solid loan terms and save money.
FAQ
Preparing to buy a car is a big deal, both financially and emotionally. Here are answers to common questions about the car loan process.- What credit score do I need to finance a car?
- You don't need a specific credit score to finance a car, but a higher score is better.
- Lenders give the best terms -- low interest rates and minimal fees -- to borrowers with the best credit. You pay less to borrow money when you have a higher score.
- Do I need a down payment for an auto loan?
- You might need a down payment for an auto loan. It depends on the lender and your credit score.
- Dealerships are more likely to require a down payment, but it's a common requirement for every type of lender.
- Down payments are also beneficial for you since it helps lower the amount you owe and reduces the total interest you pay.
- What documents do banks require for car loans?
- Banks usually require the following documents when you apply for a car loan:
- Government-issued ID
- Pay stub or other proof of income
- Car insurance card
- The exact requirements vary from one lender to the next, so always check before you apply.
- Banks usually require the following documents when you apply for a car loan:
- Can I get a car loan without proof of income?
- You can't typically get a car loan without proof of income. Lenders want to know that you can afford to make loan payments.
- Your proof of income can include pay stubs, tax returns, Social Security documentation or bank statements.
- How long does it take to get approved for a car loan?
- Many lenders approve car loan applications within a few hours.
- Dealerships usually have same-day financing decisions since it simplifies the car buying process.
- Requirements for a car loan from a bank are different. Some banks offer same-day financing, but others take up to three business days to decide.
- Do I need insurance before financing a car?
- You don't need insurance before financing a car. But you must have insurance before leaving the dealership or driving away from an independent seller.
- Once you have the details about your vehicle, you can get a new policy or update your current policy to include the car. Some dealerships also offer temporary insurance.
- Can I finance a car with bad credit?
- You can finance a car with bad credit, but you'll probably have a higher interest rate. Your credit determines your interest rate, loan terms and fees. When you have bad credit, you don't qualify for the most competitive rates, so it usually costs more to borrow money.
Stacey Bumpus contributed to the reporting for this article.
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- Federal Reserve. 2025. "Consumer Credit - G.19."
- Consumer Financial Protection Bureau. 2025. "How does a down payment affect my auto loan?"
- Federal Trade Commission. "Credit Scores."
