Taking out a car loan is what most consumers do when purchasing a car. Whether buying new or used, few people have thousands of dollars to spend on a car. Auto loans are available from banks, credit unions, finance companies and dealerships. Here's what you need to know when shopping for a loan. Know Your Credit Score An important factor in auto loans has everything to do with your credit. Specifically, if your credit score is strong, you'll have a better chance of getting approved for a car loan at a favorable interest rate. People with a credit score of at least 740 have excellent credit and are viewed very favorably by lenders. If your annual income is decent and you have a steady income stream, then getting approved for a car loan shouldn't be very difficult. issue. On the other hand, if your credit score is low, such as below 600, you are in what is considered “subprime territory.” Subprime borrowers can still get a car loan, but the interest rate is usually much higher, effectively leading to a car loan. increase their loan costs. How much can you afford? What is your budget...