Credit Auto Loan FAQs Finance Page

Middlekauff Ford wants your buying experience to be informative and as pleasant as possible. We know that you can choose any other dealership in Twin Falls and throughout Rupert ID, and we value your loyalty to us. Below are the most common financing questions that buyers around Buhl ID have when purchasing a vehicle from our dealership. If you have any other questions, feel free to reach out to a sales professional.

What does it mean to pre-qualify?

Pre-qualification means the creditor is determining your creditworthiness after reviewing basic information within your credit file. Additionally, creditors will use basic information, such as your annual income, monthly rent or mortgage payment, and checking and savings account. Although pre-qualification isn't a guaranteed approval, it is considered the most efficient way to determine credit eligibility.

Why won't it affect my credit score?

The process for pre-qualification can vary, depending on the lender. However, most lenders will conduct a soft inquiry from one or more credit reporting agencies to make a basic determination. Because a soft credit inquiry is used to obtain access, it does not affect your credit score in any way. And it's not visible to other lenders.

What paperwork will I need to get a loan?

Generally, lenders require proof of identity, proof of income, checking and savings information, proof of residence, and proof of insurance. If there is a trade involved, you will need to provide the vehicle registration and title. Lenders typically disclose the paperwork needed at the time of the application; however, in rare instances, a lender may request additional information based on your specific request and credit situation.

What is a co-applicant, and why might I need one?

A co-applicant is anyone who is will be used to guarantee repayment of the loan. Typically, it is a spouse or parent; however, a co-applicant can be anyone who shares an interest in getting the loan approved. For example, a sibling or domestic partner may be used as a co-applicant. Co-applicants are also used when the primary applicant cannot be approved on their own.

Can I get an auto loan even if I have bad credit?

The short answer is yes. However, there are usually conditions that lenders require to ensure repayment of the loan. For instance, a lender may request a co-signer or a larger than usual down payment. If you know that your credit is an issue, it's advantageous to offer a larger down payment to begin with. Lenders look more favorable on those with bad credit who are willing to invest more cash upfront than those who put down as little as possible. Additionally, the annual percentage rate (APR) may be higher than usual with a loan approved with bad credit. Some lenders specialize in bad credit loans, which Middlekauff Auto Mall has access to.

Can I get a car loan after bankruptcy?

Yes. As long as the bankruptcy has been discharged. Lenders are willing to give applicants a second chance, which is why bankruptcy exists. However, you must meet the lenders' specific criteria for approval.

Can I put zero down?

In certain instances, zero down payment may be allowed. Special financing offers often include zero down payment options. Keep in mind, payments may be higher than usual, and gaining equity in the vehicle will take longer.

Can a college student get a car loan without a job?

Depending on the circumstances, a college student may be able to get a loan without a job. In almost all situations, a co-signer is required and a good credit score.

If I apply - does that hurt my credit?

Credit inquiries remain on your credit file for two years. The impact is minimum and slowly decreases over the two years. If you're rate shopping for an auto loan, credit scoring models will categorize multiple hard inquiries as one inquiry, as long as completed within a certain time frame - typically 14 days.