Yes, doing the entire underside is a good idea - but a mess: you'll need someplace for it to drip for a couple days !! I've used several kinds of goo: on a brand-new Jeep, I started with Boiled Linseed Oil on everything: when it (finally) dries it's like a plastic coating....don't get it on the exhaust as it will catch fire. Hunt around at car parts stores or online and you can find "rustproofing kits" that usually contain spray-on rustproofing for most areas and spray-on undercoating for areas that get hit by road debris. (Course, the easiest thing is to find a rustproofer to do it for you - there are still some Ziebert locations around).
For used cars, I scrape & wire brush the loose scale off, then paint everything with oil - have used the old drain oil from engine but the best is chain saw bar oil - it's sticky and won't fly off.
Existing body rust is a problem - almost impossible to stop once it starts. Are you talking about a little scale around a scratch - or completely rusted-through with holes, etc. The only way to stop badly rusted areas is to cut-out the bad area and weld-in a repair panel. Body filler ("bondo") will just bubble. And you have to get behind the repair and seal with rustproofing/undercoating, etc.
ROBERT: what is "wax oil" ??? where do you get it ??
(story - it's like pushing water uphill: my first new vehicle was a Jeep Wrangler.......as soon as I got it, I took it apart in the driveway. I removed the interior and sprayed rustproofing into every crevice and spot I could........took the upholstery off the doors and rustproofed & undercoated in there. Drilled holes in the tailgate and sprayed rustproofing in there. I painted the entire underside with Lindseed Oil, and undercoated inside the wheelwells. I did this every Spring for 4 years. It still rusted out in the rockers & around rear wheel wells - even the hood. Salt + crap metal + poor design.)