Application Checklist for a Car Loan
You have searched for the best car loan to help you finance a vehicle purchase and have finally landed on an ideal lender and product. So what comes next? Applying for a loan is usually accompanied by comprehensive paperwork that can make the process a nightmare. Preparation will ensure that you don’t rush around at the last minute trying to find the needed documents. Coming up with an application checklist will speed up the process and get you well on your way to being approved for a car loan.
Identification and Contact Details
A valid driver’s license or passport will help identify you when approaching a lending company for a car loan. Applicants can also present their birth certificates or other documents with a name and photo. Ensure that you have updated contact details when applying for a loan and that includes your residential address, email address, and phone numbers.
Credit History Records
A lending business has to know the state of your credit history to gauge your liability risk. Your past debts and repayment habits say a lot to a lender. If you are still servicing other loans or credit cards, the lending company may ask for statements to see that you are making timely payments. A good credit history improves your chances of getting approved for Car Loans at Stratton Finance, which is why you should make efforts towards repaying your debts. It may be wise to wait a little while to clean up your credit history before beginning the application process.
Proof of Income
An applicant who has never taken out a loan of any kind will not have a credit history so a lender will ask for other means to prove income. It’s not enough to just say you earn a certain amount every month. A lending agency has to know that you have the means to repay the loan. First, you have to submit copies of your payslips for several months. Group certificates and tax returns can also serve as proof of income if payslips are not applicable.
For a self-employed individual seeking a car loan, the lender may ask for tax returns of the business or Notices of Assessment. Other financial documents such as bank transaction listings can also help you prove income generation.
For an applicant on Centrelink benefits, a lender will need the Centrelink Income Statement with your application. Always check first if a particular lending business grants auto loans to people on Centrelink benefits.
In the case of a secured a car loan, the customer will have to give the particulars of the vehicle. The engine number and registration are some of the details to include your application. Sometimes a lender can send a cheque directly to the dealer, so you have to give precise information when applying.
Assembling the documentation required for a car loan application in advance can save you a lot of frustration when you approach a lender. Know the basic requirements and work towards meeting each one.