Frequently Asked Auto Loan And Credit Questions

Are you thinking of buying a new or used car in Houston? If so, you may have a few questions or concerns about the auto loan and credit process. Here at Mercedes-Benz of West Houston, our finance team is here to help you however we can. We've even answered some of the most frequently asked credit and auto loan questions below.

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What Does it Mean to Prequalify?

Most dealerships offer a prequalification application to get a basic review of your creditworthiness. This application allows the finance center to determine if you're a good candidate for a loan without having to do a hard pull on your credit. Most prequalification forms will need your basic information and don't require your social security number, although every prequalification form is different.

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

Most prequalification application don't require your social and won't need to do a hard pull on your credit. Some may need to do a soft pull, which doesn't affect your credit score. When you fully apply for a lease or loan, a hard pull will be done, which will slightly affect your credit score.

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 who you trust to be on the car loan with you and will take responsibility for the loan if you default. Typically, if a customer doesn't qualify for a loan, a co-applicants good credit will help make the loan happen.

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

Yes! It won't be as easy to get an auto loan if you have bad credit, but there are ways around it. Talk with the finance team to see what your options are.

Can I Get a Car Loan After Bankruptcy?

Yes! Bankruptcy is rough, especially because it lasts on your credit report for seven to 10 years. This doesn't mean that you can't get a car loan during that whole time, though. There are bankruptcy loan programs that you can use.

Can I Put Zero Down?

Yes, but we don't recommend it. There are options for a zero down car loan, but this will make your car payments higher and will most likely raise the interest rate applied.

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?

A hard pull will be added to your credit score when you apply for a car lease or loan. This hard pull does affect your credit score slightly and will lower it momentarily. These pulls tend to go away quickly, though. The more hard pulls you have, the more it will affect your credit score.

Contact Mercedes-Benz of West Houston To Learn More


If you'd like to talk with our finance team about your credit and auto loan options, don't hesitate to contact our Mercedes-Benz dealership in Houston. We'd love to help you find the right lease or loan for your new Mercedes-Benz car or SUV today!


Mercedes-Benzof West Houston

1025 Highway 6 North
Directions Houston, TX 77079

  • Sales: (281) 492-5800

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  1. Mercedes-Benz of West Houston

    1025 Highway 6 North
    Houston, TX 77079

    • Sales: (281) 492-5800
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Get in Touch

  • Contact our Sales Department at: (281) 492-5800
  • Monday8:00 am - 7:30 pm
  • Tuesday8:00 am - 7:30 pm
  • Wednesday8:00 am - 7:30 pm
  • Thursday8:00 am - 7:30 pm
  • Friday8:00 am - 7:30 pm
  • Saturday8:00 am - 6:00 pm
  • SundayClosed