There are many things needed to get approved for a car loan. The list of specific items is determined by the bank or lending institution where you apply. It is possible to get approved for a vehicle loan without a bank account, but most lenders won't allow it.
Requirements
Most lenders approve car loans based on your credit score, income and how well you have paid your credit obligations in the past. At the time your application is submitted or shortly after, the underwriter will check your credit score with the three major credit bureaus. The underwriter will also request certain documentation such as pay stubs, tax returns and statements from all of your bank or investment accounts. The type of documentation requested will depend on the type of loan you want.
Bank Statements
The lender wants to see documentation because it gives the underwriter verification that the information on your application is accurate. Your pay stubs and tax returns show the underwriter you are employed or have a steady income stream. Your bank statements show you have the ability to manage your money, increasing the lenders confidence in approving your loan. Investment account statements show the lender you have some assets, which also increases confidence you will meet your loan obligations.
Bank Account
Having a bank account gives the lender more proof you can manage your money. Your account will show you are paying your bills and depositing money. Some lenders offer discounts if you allow your monthly car loan payment to be deducted automatically from your bank account.
Considerations
If you are thinking about applying for a car loan and don't have a bank account, it would improve your chances of getting approved if you had one. If you aren't able to open an account because of age or problems with maintaining bank accounts in the past, try adding yourself as a joint account holder with someone who is able to open an account. Some banks have accounts specifically for people who have problems opening one.
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