Car finance.
When applying for finance for a car, what are they looking for on a credit check? Just if there is existing defaults or Just the credit score? Or are they looking at the previous enquiries and what not?
Additionally,
What do they need in an application?
ID, Proof of address? Pay slips? Do they want to know particulars or what we pay per week in mortgage or rent? Or our annual weekly expenses?
Just getting lined up for visiting a car yard soon to purchase a car, would like to be organised as possible.
Thanks.
3 Replies
All of the above
Car finance is no different to any other type of finance. You need to prove you can afford what you are trying to buy, so yes, they will ask for payslips, back statements, mortgage or rent receipts, proof of every expense, and valid ID. The credit check / score will determine the interest rate you will be given, so the more defaults or applications showing as wwell as lower the credit score, the higher the interest rate.
The easiest way to go about a car loan is with your bank, it can be done all online you don't even need to talk to anyone. They can see everything on your statement and ID is done. It gives you more freedom at car yards too as you already know how much you can spend instead of trying your luck with one car and them knocking you back after a few hours of paperwork and phone calls, then feeling obligated to find a cheaper car with the same car yard.