How to get a car loan on the same day

This is not an ideal situation, but you may need car financing immediately. This may be because:

• You have found your dream car
• Your car has broken down and needs to be replaced immediately
• You had to sell your car to pay off your debt
• You have just started a job that cannot be reached by public transport.

Buying a car is stressful in itself, but when you're pressed for time it's even harder. Getting a car loan or car loan can sometimes take days or even longer to get approved for the type of car you want, and sometimes you just can't wait that long.

Many loan providers, used car dealers, and even some franchised car dealers offer same-day car loans to buyers. If you have good credit, your options are much better. If your credit is not as good as it could be, you may be limited, but you can usually still get a car loan on the same day.

Method 1 of 2: Get a car loan on the same day if you have a good credit history.

Image: Credit Karma

Before deciding which method is right for you, you need to know your credit score. Even if you're in a hurry to the dealership, it's wise to take a few minutes to check your credit score before leaving home. You can get it online quickly from sites like Credit Karma.

If you have good credit, you are a welcome customer for lenders, whether through a bank, car dealer or other car loan. You will be able to get car financing on the same day without any problems if you have the income to support the loan.

Necessary materials

• Personal identification (usually a photo ID and another form of identification)
• Income verification

Step 1: Find competitive offers from lenders. You are in control because you are a great prospect. Don't be afraid to let lenders know that you are looking for the best financing offer.

Gather 5-7 attractive promotions or offers from lenders, noting which ones have the best repayment rates and what are the perks of using their services. Reduce your list to the top three and rank them.

Contact three leading lenders and compare their offers with each other to get the best loan terms.

Step 2: Fill out the loan application. Provide as much information as possible to support your application.

Be accurate and truthful, as false information may result in your application being rejected and flagged by your credit bureau.

Step 3: Provide identification. Provide a copy of your ID, usually a driver's license, and other proof of identity such as a credit card, birth certificate, or passport.

You are not required to provide your Social Security number, although including it on your application may expedite the processing of your application.

Avoid filling out multiple loan applications whenever possible. Multiple visits to your credit bureau can raise flags similar to potential identity theft, limiting your credit or lowering your credit score.

Image: Bankrate

Once you have completed your loan application, you will quickly receive approval if your credit history is good and you are able to make payments in accordance with the Debt to Service Ratio (DSCR), also known as the “Debt-Coverage Ratio”, i.e. the ratio of money you have to pay off your debts.

For example, if you pay $1500 a month for a mortgage, $100 a month for an auto loan, and $400 a month for other debts, your monthly debt payment will be $2000. If your gross monthly income is $6000, then your debt-to-income ratio is 33%.

Step 4: Apply for a car loan. Read the terms of your loan agreement carefully. If they don't match what you were promised, don't sign the contract.

If the lender does not meet the promised rate or terms, go elsewhere and complete a new application.

Method 2 of 2: Get an auto loan on the same day if you have a bad credit history.

Necessary materials

• Banking information
• An initial fee
• Identification (photo ID and one other form of identification)
• Income verification

If your credit is less than what you want, it may be just as easy to get a same-day car loan, but your repayment terms will be different. If you have bad credit or no credit, lenders view you as a higher risk of defaulting on your car payment. Basically, you haven't proven yourself worthy of low interest rates and competitive repayment options.

Same day auto loans can be your first step towards building or repairing your credit score if the lender reports your credit to the credit bureaus. Typically, same-day auto loan lenders do not require a credit check, but will still require proof of your identity.

Same day auto loans are usually provided by the dealer or lender out of pocket, acting as their own bank. You can expect your interest rate to be high and your repayment period to be shorter than someone with good credit. This is a way for a lender to quickly recoup a portion of their high-risk loan in the event of a default.

Step 1: Sell yourself to creditors. Look for reputable dealers or lenders who have a recognizable and established business. Look for the best rates possible for bad situations or no credit.

Talk to creditors to test the waters. Feel if they think you will get funding.

Step 2: Know the terms you are going to receive. Your interest rate will be much higher than the low advertised rate they have.

Your payment will likely stretch what you are comfortable paying monthly.

Step 3: Fill out the application. Please fill out the form completely and honestly. Your personal information and income will most likely be verified before you are given a loan.

Let the lender know if you want your payments to be automatically debited from your bank account and provide them with your banking information to show that you're serious.

If you want the money to be withdrawn automatically, it helps reduce the risk of defaulting on car loan payments. You may even get a better interest rate because you help reduce your risk.

Let the lender know if you have a down payment. This will help you get a loan if you have a down payment on your car.

Provide proof of identity and proof of income.

Step 4: Get a car loan. If the conditions suit you and you are able to repay the required amount, sign up for a loan. Before you sign the documents, read the terms of the contract.

If the terms are different from what you were told, do not sign the documents until they are clear.

You have the option to turn to another lender, so don't settle for anything because you feel like you have no other choice.

If you need same-day financing for a car you want to buy, it's a good idea to come to the dealership as prepared as possible. Find out your credit score before you leave home so you know what approach to take when you arrive. If you have a good credit history, you are in a better position than if it were bad, but never hesitate to turn down a deal that feels wrong to you.