Made the decision to apply from an auto loan? Great, but before you do start there are some things you must know.

Know Your Credit Report

Knowing what is on your credit report is an important step in applying for any type of credit. It may be better or worse than you expected but at least you will have an idea of where you stand credit-wise. You may also find incorrect information that if fixed will increase your credit score.
A credit report is separated into four sections.

• Identifying information
• Credit history
• Public records
• Inquiries

Identifying Information

Identifying information consists of your name, social security number, present and previous addresses, phone numbers etc. It also includes your present and past employers, your driver license numbers and information about your spouse.

Credit History

The credit history section includes the name of your past and current creditors and your associated account numbers. It also includes:

• The date you opened the account
• Whether your account was originally opened in your name
• Type of credit installment plan
• Any loans you have received and their respective balances and dispositions
• Information on payments, on time, late etc.
• The status of your account; open, inactive, closed or paid

Public Record

The public records section lists financial data: bankruptcies, judgments, tax liens and foreclosures.

Inquires Section

The inquires section consists of two sub-sections. The "Hard" inquires section consists of credit pulls specifically authorized by you. An example of this is when you agree to have your credit pulled when applying for a credit card. Too many hard pulls in a short period of time can lower you credit score. However, hard pulls for the same purpose in a predetermined period, usually two weeks, only count against your score once. It is often a good idea to consolidate similar credit applications into a short period of time.

"Soft" inquiries consist of pulls or partial pulls from companies' prequalifying you for promotional content. These do not initiated by you and should not affect your credit score.

Where to Apply For Auto Loans

By far the best resource for auto loans and auto finance in general is the internet. Most if not all of the top auto finance companies have online auto loan applications. They tend to be short forms that are easy to understand and complete. One advantage of online lenders is that you can apply, check the loan status, and make payments etc, any time you like. Brick and mortar banks and credit unions generally have incontinent hours and tend not to be open when it's convenient for you. Another thing to consider is the hassle of driving, parking and waiting for a loan officer. Going online for auto loan and auto refinance lets you decide what is most convenient for you.

Increasing your Approval Chances

The next most important item next to your credit score is your monthly income. If auto loan lenders think that you will have a hard time making the monthly payments they usually won't be so quick to approve your low interest loan. You monthly income consists not only of your paycheck but can include all income, alimony, child support etc. These items are optional but disclosing them can help your changes of getting approved and a low rate auto loan.

Another important aspect is your length of employment. Making $6000 a month is great but the lender wants to see that you tend to keep steady employment. If you have only been at your current job less than six months, it can hurt your chances of getting approved.