Taking out a car loan is what most consumers do when purchasing a car. Whether buying a new or used car, few people have thousands of dollars available to purchase 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 high, you will have a better chance of getting approved for an auto loan and at a favorable interest rate. People with a credit score of at least 740 have excellent credit and are viewed more favorably by lenders. If your annual income is decent and you have a steady income stream, getting approved for an auto loan shouldn't be much of a problem. problem. 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 an auto loan, but the interest rate is typically much higher, effectively driving the costs of the loan. How much can you afford? What is your budget...