Car Loan Guidelines – What You Need For Approval
Understand these car loan guidelines and get approved faster
Getting approved for a car loan is really exciting. It can start your journey to getting the vehicle that you want and being on the road sooner.
There are some things you’ll need to do before you can celebrate your car loan approval. Following our guidelines will help to ensure that the process runs smoothly and you avoid any unnecessary delays by having missing documents or inaccurate information.
Whether you’re looking for a car to use for work or pleasure, we can help find the right car loan for you.
What are lenders' Car loan guidelines?
Lenders want to make sure that you are a suitable borrower for the car loan that you have applied for. They also want to ensure that they will see the loan that they give you paid back in full during the length of the loan term that is agreed upon. So the primary guideline is that you need to be able to afford your car loan repayments comfortably.
For these reasons, a lender is likely to look at a number of factors and information about you before they will approve your car loan application.
Find out your credit score
It’s really useful for you to know your credit score before you start applying for car loans. It’s quick and free of charge to find out your credit score and could save you a lot of time and unsuccessful applications.
Knowing your credit score will help you get an idea of which lenders to apply to and where you’re likely to stand when it comes to car loan approval. If you find that you have a poor credit rating, it could be worth timing your car loan application when you have made improvements to this by paying back previous unpaid loans or paying off outstanding credit card bills.
Consider your employment status
To get a car loan approval, you’re likely to need proof of income – either in the form of at least three months of recent payslips, or recent tax returns or BAS reports. You need to prove that you can pay back your loan on time and that you’ll have the funds available to do so,
If you have recently changed jobs or you are currently unemployed, you may want to wait until you apply for car loans to ensure that you get approval. It’s important for most lenders to see evidence of stable employment, so consider whether you’re at the right stage to apply for car loans.
For small businesses who may not have a consistent income or for start-up companies who may not be able to show previous tax returns, it could be worth considering a low doc loan. Speak to us to find out if a low doc car loan is right for you.
Get your documents in order
Lenders' car loan guidelines will generally require set documents before approving you. They need to have a number of documents such as proof of identification, bank account details, proof of income, and often information about your other liabilities, such as additional loans.
Having all of your documents in order can really help to avoid unnecessary delays in the car loan process. Take some time to get organised – finding all the required documents, making copies if needed, and ensuring that they’re ready to submit whenever the lender needs them.
Ask for expert help
At Positive Lending Solutions, we can help to make the journey to getting a car loan approval as positive and as stress-free as possible.
We have decades of experience working within the car loans industry, and we know exactly what is needed to give your car loan application the best chances of success. Our access to a range of lenders will save you hours of searching online and could help to save you money as well.
We can help you through car loan guidelines and the application process. Get expert car loans advice today.