Question:
What is the point of having a "references" section in a loan application? I remember last time I got a car loan it was there. I don't think they ever checked it out though. Is it to make sure that the person really exists? Wouldn't checking an ID and the credit report pretty much handle all that, since the reference can be anybody really. Is it to make sure the person really pays back the loan? Even if he doesn't so what? They can't go after the reference anyway.

Answer:
My guess is that they just want to see if you can provide the names, 'cause it looks pretty bad if you're trying to convince them you're a good credit risk but you can't think of three people who can back you up on that.

Is it to make sure the person really pays back the loan? Even if he doesn't so what? They can't go after the reference anyway.

The reference might be able to help the skip tracers locate the debtor - that's why the high interest self-financed used car dealers want to see several recent phone bills - lots of numbers to call to try and locate you when you skip with the goods.

What is the point of having a "references" section in a loan application? I remember last time I got a car loan it was there. I don't think they ever checked it out though

. Speaking as a student-loan customer-service employee, I would say that the main reason references are required is to keep track of the borrower. If, during the repayment period, the borrower moves and leaves no forwarding address or telephone number, my employer will contact the references asking if they have a recent address or phone number for the borrower. To the best of my knowledge, we don't contact the references as part of the approval process itself.