Frequently Asked Auto Loan And Credit Questions

If you're considering purchasing a new or pre-owned BMW near Dallas or the DFW area, you may have a few questions about your BMW lease or loan. To help, our team of BMW finance experts has created a list of answers to some of the most frequently asked auto loan and credit questions.

What Does it Mean to Prequalify?

Most dealerships have a prequalification application available that will provide a basic overview of your creditworthiness. These prequalification applications don't typically pull your credit score and allow our team to go over your financial situation before you apply.

Why Won't It Affect My Credit Score to Prequalify?

When you fill out a prequalification application, most won't require a pull on your credit. Many prequalification applications don't even need your social security number to continue. When you fully apply for financing, we will need to do a hard pull on your credit, which will lower your credit score slightly for a short amount of time.

What Paperwork Will I Need to Get a Loan?

While every lender is different, most car loans or leases will require:

• Proof of Identity - Driver's license, passport, U.S. visa, or other government-issued I.D. with a photograph and your name.
• Proof of Income - Pay stubs, bank statements, W-2, verification of employment, etc. 
• Credit and Banking History - Social Security Number
• Proof of Residence - Mortgage statement, utility bill, lease agreement, etc. 
• Proof of Insurance - Insurance card, insurance policy 
• Method of Down Payment - Check, credit card, debit card, etc.

What is a Co-Applicant and Why Might I Need One?

A co-applicant is a person you trust to be on the car loan with you. This person typically has good credit and is willing to take over any car payments if you default. A co-applicant is a good idea to have if you don't have good credit yourself.

Can I Get an Auto Loan Even if I Have Bad Credit?

Yes! There are ways to get a car loan with bad credit. You'll want to talk with our finance team to see what your options are, and you may want to find a co-applicant to help out.

Can I Get a Car Loan After Bankruptcy?

Yes! Bankruptcy will leave a negative mark on your credit report for seven to 10 years, but that doesn't mean you can't purchase a car during that time. There are many different bankruptcy loan programs available.

Can I Put Zero Down? 

Yes, but it's not recommended. The more money you put down on a car, the less your car payment and interest rates will be.

Can a College Student Get a Car Loan Without a Job?

Yes, but you'll need a good co-signer or else a large down payment.

If I Apply, Does That Hurt My Credit?

When you apply for a car lease or loan, we will need to do a hard pull on your credit. This hard pull will lower your credit score slightly, but only for a short time.