Basic Requirements for Car LoansBlog Jul 14th, 2017
When buying a new vehicle, it helps to understand your requirements and the credit responsibilities related to such a huge investment. Here are a few points that will help you understand the loan approval process.
An evidence of your identity in the form of photo ID with your signature on it is a must while working with the lender for the first time. To ensure that the identity is not fake, lending institutions usually ask for a state- or government-issued photo ID and a utility bill with your name and address similar to that on the picture ID.
To qualify for a car loan, it is important that you have a steady source of income. Lending institutions are looking for as an assurance that you can afford to pay back what you borrow. Income proof includes pay stubs or bank statements. Buy some lending institutions prefer to verify directly with your employer and may also maintain its criteria regarding acceptable documentation.
Potential lenders usually need to be able to find you should you stop making payments. Your utility bills and state issued photo ID show proof of your current home address and should be enough to fulfill the criteria.
Good Credit Score:
A good credit score is crucial to qualify for car loan. Even if you have a poor credit score, lenders specializing in bad credit auto loan will be more than happy to help. But it is best to keep a check on your credit scores and make an effort to improve before applying for a loan. Alternatively get in touch with Maritime Car Loan – we provide car loans for people with bad credit.
Since down payment makes default on loan less likely, lenders look favorably upon such borrowers and help them qualify for a loan faster along with obtaining a lower interest rate. Not making a down payment increases the monthly installments, and hence you end up paying more.