3 Things auto lenders watch out for in your loan application
Obtaining a loan from an auto lender is a big mystery. Most borrows apply for an auto loan without realizing what the car financers/auto lenders really want to see in the loan applications. However, in real life, the loan application process is not that difficult.
Car financers/auto loan lenders actually make a decision on the basis of the information in the loan application. The truth is, the application process is quite similar whether you’re trying to obtain a credit card or attempting to refinance a secured loan.
If you can understand the psychology of the auto loan lenders even a little bit, then you’ll be able to increase your chances of obtaining a loan significantly.
1. Your personal and job details: An auto loan lender would want to know that he is giving out a loan to a genuine borrower and not a fraudster. So, he’d want to look at your personal details. You’d have to give a photo identity card such as driver’s license card. The lender would also wish to know your home address for sending the bills. So, you’d have to send copies of your utility bills.
Auto loan lender would not want to give money to a person who can’t afford to repay the loan. You’d have to prove your loan repayment capability in your loan application. Attach a copy of your pay stub with your loan application. Don’t be shocked if the lender wants to talk with your employer.
2. Your credit record: This is the most important information for your credit history will prove that you’ve repaid your debts in the bygone days. Car financers or auto loan lenders prefer to approve the loan applications of the borrowers with long credit history. The reason is, if the borrower has shown strong sense of responsibility earlier, then there’s a great probability that he’ll behave in the same way in future also.
If you’ve a shot credit history, then you may have to bring a co-signer on board. Otherwise, you can try for a low doc auto loan.
3. Loan information: Auto loan lender would want to know about the loan amount, down payment amount, and the repayment period. You’ll have to give these details in the loan application form. The lender will determine if you can actually pay off the loan from these details.
Right information in the loan application can help you obtain an auto loan. Try to avoid making false statements in the loan application. Lenders will verify the information you’ve provided in the loan application. If they see that you’ve lied just to obtain the loan, then it’ll create a very bad impression upon them. They may just reject your loan application and never give you a second chance to obtain a loan from them.