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Preapprove Your Way to a Better Car Deal | Credit Union 10/19/2016

Before you set foot on the car lot, get preapproved for an auto loan and be able to walk in feeling confident. Getting preapproved for a car loan means you'll know what kind of rate you'll pay, and what size loan you're qualified for.

If you have questions about how much car you can afford, or how financing works, a member service associate at Direct Federal will be happy to help.

To apply for preapproval, you'll need to show:

  • Name and address

  • Social Security number

  • Driver's license number

  • Employer information (name, hire date, gross income)

  • Current housing information—monthly payment, time in current residence

  • Debt obligations—current credit card debt, home association dues, auto insurance

    Certain financial institutions also may require you to list a reference or other information.

    Once you're preapproved, you'll receive a preapproval letter and/or check depending on your financial institution (at Direct Federal, you’ll receive a check in the mail that can be signed over to the dealer on the spot) that you can take car shopping showing the amount you're approved for.

    Getting preapproved is a big advantage, as it shows car sales staff that you're a serious buyer. It also removes the pressure of negotiating financing contracts at the dealership, and allows you to focus your attention on finding the right vehicle. And, if you need another incentive, our low auto loan rates can get you on a faster track toward making your dream car a reality.