What You’ll Need to Qualify for a Car Loan
It can be easier than you think to qualify for a car loan with NewRoads Financial. Here’s a quick guide to being prepared.
Qualifying for a car loan can be an easy and straightforward process if you are prepared and well informed. Most car buyers already have most of the important requirements that lenders need to process their loan application. If you are planning to apply for financing for your next car purchase, here are the basic requirements you need to qualify for your auto loan.
Proof of Income
The most important requirement to qualify for a car loan is proof of regular income. This is the only way you can prove to your lender that you will be able to make your monthly loan payments consistently. You can provide proof of income with documents such as bank statements and pay slips.
You may also need to provide an employment letter and give your lender some information about your work history. If you have been working at a company for more than two years, you will be given a higher rating with respect to stability of employment and income.
Proof of Identity
You should present proof of your identity when you apply for a car loan. Financial institutions need this to make inquiries about your financial history. You need to provide multiple photo ID’s such as a valid driver’s license. Frequently accepted forms of identity include passports and bank statements that contain the same address on your driver’s license and other documentation.
Proof of Residence
A proof of residence is necessary when applying for an auto loan. Your lender needs this to communicate with you using surface mail and to be able to locate you at home if you ever default on your loan payment. Utility bills including water, electricity, and gas bills may be used as a proof that you are living at an address. You may need to produce copies of your bill for the last two or three months.
Down Payment
As with most loans, you will have the option to make a down payment when taking on a car loan. Making a substantial down payment may enable you to negotiate for a loan with a lower interest rate. However, at NewRoads Financial, all our car financing options are offered with $0 down payment.
Credit Rating
Your credit rating shows how well you have handled credit and loans in the past. It is also an indication of how much risk your lender will be taking on by offering you finance for your car. A high credit score implies low risk for your lender while a low credit score indicates high risk.
Even if you have a low credit rating, you can still get approved for an auto loan. The New Roads Financial team are experts at working with our customers to get them approved for an affordable car loan, even with bad credit.
Trade-in Documents
Provide any other documents such as service records that will help the dealership to determine the vehicles trade in value.
It’s Easy to Qualify for a Car Loan with NewRoads Financial
At NewRoads, our expert finance team is here to help you qualify for an auto loan. If you put together all the documents and information described here, you will speed up the process of applying and qualifying for a car loan.