Bring the children to school, join the work, do the daily shopping: all this requires the use of a car throughout the week. At the weekend, you do not get rid of your car for trips with friends or to visit the family.
However, buying a vehicle, new or used, is not easy for all households. This is usually a saving of several months of wages. Without the possibility of paying you a new car on your own, the car loan is to be requested from your bank.
The granting of this type of credit requires certain conditions imposed by banking organizations. Zoom on these bank requirements before granting a car loan!
Refund capabilities: a scrupulously verified condition
Regardless of the type of loan you request, the bank always calculates your ability to repay. But before you start building the application file, consider assessing how much you can repay to the entity per month.
For this, you must first know all of your monthly income. These are not limited to your salary. They may include other forms of income (rents, rents).
Then the calculation of expenses and all other charges is necessary. Do not forget any heading: taxes, water and electricity, school fees, etc. The difference between revenue and expenses is your repayment capacity. The latter must exceed the monthly payments for the amount borrowed.
For employees, it is mainly salary. Available income also includes the various benefits you receive. Real estate and landowners receive rents. The profits or dividends of entrepreneurs are part of their disposable income.
Some retirees get credits. Thus, their incomes are calculated from pensions at retirement as well as other allowances and incomes. The receipts of the borrower must be stable. In order for your credit application to be accepted, you must justify a regular and sustainable income.
Workers on permanent contracts are more likely to obtain auto loans. You are in temporary employment? With a little effort in the development of your file, it is possible to benefit from a car loan.
The debt ratio
The bank is not limited in assessing your disposable income. It also takes into account your debt situation. To give you one more credit, the lender asks to inform you of all your loans in other entities.
The monthly payments of all your credit agreements are added up. By dividing these debts by income, we obtain the debt ratio. This report is an important decision criterion for the bank. With a debt ratio too high, one more loan will only drown you in the inability to repay.
Bank registration: reason for refusal of a loan application
Being banked means having made mistakes in checks, cards or loan repayments. On the one hand, carding concerns personal loans. If you have left unpaid in your old credits, you can be included in the FICP.
This file keeps the incidents related to loan repayments. The FCC indexes customers who have had bad bank card and checkbook experience and who are subject to the ban on these services. Bank fichage results in the rejection of any credit application.
Review of your personal situation
Before you entrust your money, the bank assesses your situation in full. It takes into account all your expenses. How is your household composed? Does your spouse work? The credit agency considers the number of your children as well as the number of other dependents, such as parents.
It takes into account your professional status. Do you own or rent? The bank also considers your behavior on your old loans, to assess whether you deserve your trust for a new auto loan. Nationality does not matter when applying for bank credit. It is enough that you reside in the country.
For banks, users who display more stability in life are generally more reliable. This stability affects place of residence, employment and marital status.
Your age: a fairly important criterion for obtaining a car loan
Whether it’s a car loan or another type of loan, it seems difficult to award a contract to an individual who is still too young. Even if you reach the age of 18, getting credit at this age is complicated, if not impossible.
It is from your quarter century that banks are beginning to give you more confidence. Guests arriving in their thirties can easily obtain auto loans. For pensioners, it is still possible to borrow to acquire a new car. However, lenders are increasingly reluctant to extend credit to people in their 60s and 70s.
Gather all the required supporting documents
Are you sure of your creditworthiness after calculating your income and expenses? It is then time to move on to the next step. You must support your application with supporting documents. To justify your salary gains, you must bring your last payslips.
Your leases may be useful in order to confirm rental income. Apart from proof of income, the bank requires your identity documents. There is also a proof of address from the last quarter. Taxation notices from the tax authority are useful.