Car loan pre-approval checklist
What do you need before you apply for a car loan? Work through this checklist on your phone: check your credit, gather your documents, compare lenders and set your top price. It shows what is still to do, and your progress stays on your device.
0 of 18 checked, 0 still to do
Know where you stand
Look at your credit report and score
You can get your report free from Equifax and TransUnion. Errors can cost you a better rate, and you can dispute them.
Work out the monthly payment you are comfortable with
Start from what you can afford, not from the most a lender will approve.
Decide how much you can put down
Keep an emergency fund. Do not put every dollar into the car.
Find your trade-in's payout amount, if you have a loan on it
Ask your lender for the payout figure. It is not the same as the balance on your statement.
Gather your documents
Photo ID, such as your driver's licence
Proof of income: recent pay stubs or an employment letter
If you are self-employed, lenders usually ask for your latest Notice of Assessment and tax return.
Proof of address, such as a utility bill or bank statement
A void cheque or your banking details for the payments
Know how you will insure the car
You need proof of insurance before you can drive the car away. Get a quote for the kind of car you are considering.
Documents for a co-signer, if you will have one
A co-signer is equally responsible for the loan. Make sure they understand that.
Compare lenders
Ask your bank or credit union for a pre-approval
Get at least one more offer, such as an online lender
Several applications for the same kind of loan close together are often counted as one by credit bureaus, but the window varies, so ask each lender first.
For each offer, write down the rate, the term, the fees and the monthly payment
Ask whether you can pay the loan off early or make extra payments without a penalty
Ask how long the pre-approval lasts and whether it is a hard credit check
Before you shop
Write down the most you will spend, tax and fees included
Keep your documents together in one place
Plan to compare the dealer's financing with your pre-approval
A dealer can sometimes beat your offer. Compare the full cost of borrowing, not just the payment.
Still to do
Nothing marked as still to do yet. Anything you mark appears here.
Keep going with Uobo
Uobo is your personal car agent. Text it what you need and it does the research and the checks, asks dealerships about availability, condition and price for you, and helps you decide. This is the text you would send:
You can edit this text before you send it.
On a computer? Text (289) 819-4586 from your phone and paste what you copied. Standard message rates apply. Reply STOP any time to stop.
How it works
A pre-approval tells you how much a lender is willing to lend and at what rate before you shop. It gives you a number to compare with the dealer's financing, and it keeps you from falling in love with a car you cannot afford.
Mark each item Done or Still to do. A count at the top shows how far you have got, and the items still to do are collected into a list at the end. Your marks are saved on this device so you can come back.
Nothing leaves your phone unless you choose to text Uobo, and then only the short message shown.
What this does not cover
- Lenders ask for different documents. This is the usual list, not a guarantee, so confirm with each lender.
- A pre-approval is not a loan. The final terms depend on the car you pick and a final check of your details.
- Rates and rules change. Compare current offers rather than relying on a figure you saw months ago. The car loan APR calculator turns a quoted payment into a rate you can compare.
Common questions
What documents do I need for a car loan in Canada?
Usually photo ID, proof of income such as recent pay stubs or an employment letter, proof of address, and your banking details. Self-employed buyers are often asked for their latest Notice of Assessment and tax return.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is a rough estimate from basic information. Pre-approval means the lender has checked your credit and income and will lend up to a stated amount at a stated rate, subject to conditions.
Does applying for pre-approval hurt my credit score?
A pre-approval usually involves a credit check, which can lower your score slightly for a short time. Credit bureaus often count several applications for the same kind of loan close together as one, but the window varies, so ask each lender first.
How long does a pre-approval last?
It varies by lender, often between about 30 and 60 days. Ask when you apply, and whether you can renew it if you have not found a car.