Debtors Unite: Help with Car Payments
Help with Car Payments, Loans and Refinance

Car Loan Approval

When you are unsure of your credit or have a history of credit troubles, applying for a car loan can be a stressful process. You don't know if you will be approved and the rate on an approved loan might not be as low as you would like.

Whether you are refinancing an existing car loan or are applying for a loan to buy a new or used car, the process can be scary. Are you at the mercy of a finance manager at the dealership?

To understand the process of getting a loan approved, you have to understand how the loan officer gets paid. Finance managers at the dealership get paid commission based on how lucrative the loan is that they sold you. They commonly earn kickbacks known as yield spread premiums, and these kickbacks can be hundreds or even thousands of dollars depending on how well they steer you into a higher interest rate loan!

A loan officer at a bank or credit union may get a small commission or other compensation, but your loan primarily just helps them meet their quotas. They will try to approve you for the best loan that they offer that you qualify for. Of course, each financial institution offers a different set of rates on their loans so you might want to shop around.

One of the resources that I prefer to use when researching interest rates on car loans is This site is updated daily to reflect average lending rates on used cars and new cars based on a sampling of data that they continuously collect from lenders.

You an actually apply for more than one car loan too see which is the best deal that you qualify for. That way, you can choose from among loans that have been approved, which may narrow your choices.

There is a rumor that applying for multiple car loans lowers your credit scores. The truth is that for most credit scoring products, you have at least a 2 week window in which you can apply for dozens of car loans without additional penalty. They all count collectively as one inquiry, which normally lowers your scores less than 5 points. Newer scoring products give you 45 days, so it pays to shop around for the best rate when you are making such a big financial decision.

Your improved credit can help you gain approval for lower rate car loans. If your credit has deteriorated, then your choices may be more limited. Either way, it is beneficial to shop around for the best rate that you qualify for. The result could save you thousands!

Our Promise
Unlike the advertisements that you may see claiming that they can modify your car loan, we tell you the truth. We do not modify your car loan, and neither do they. The difference is that we don't charge you and instead give you the tools you need to keep your car.
Car Loan Advocate
                                                                                                                    Copyright © 2010-2012 Debtors Unite, Inc.
Debtors Unite, Inc.
5540 Centerview Drive
Suite 200
Raleigh, NC 27606