Do I qualify for car finance
The Answer Is “Yes” But How Is The Decision Made?
The first step in any application for car finance is likely to be a request for a quotation from a lender.
Here at CarFinance Plus, we have a panel of lenders, each one tending to specialise in a particular area of lending (poor credit loans, credit for the self-employed, no-deposit loans, and so on).
Our streamlined, online application at this stage of the process involves your giving us an indication of just how much you want to borrow; how much you are able to afford to repay each month; and over how long a period you want the finance to extend.
To consider these requirements, we ask for a number of personal details, such as your name, age, address and other contact details, together with a statement of your monthly income and the information necessary to move on to the next, critical stage of the application process, a credit check.
The Credit Check
It is essential for any lender to have some certainty and reassurance that you are going to be able to afford to repay any loan. That is done through input from the major credit reference agencies revealing the record of how you have managed the repayment of previous loans and lines of credit.
In the normal course of events, this might put you at some risk. If your application is rejected by a lender, your credit record is adversely affected and it may prove more difficult in future to secure the finance you need.
That is why, here at Car Finance Plus, we take the more cautious approach of first conducting a so-called “soft search” or “quotation search” before passing your application on to any lender for formal approval.
The soft search gives us a way of increasing the certainty of your eligibility for formal approval by establishing a few basic parameters involving your monthly income, your outgoings, the type of employment you have and any current credit commitments.
This is done before passing your application on to a lender, thereby significantly reducing the risk of rejection – and the impact on your credit standing such a rejection is likely to have.
Loan Approval and Completion
Once your formal application has been approved, we complete the paperwork and pay the dealer of the vehicle you are buying, so all you are left to do is simply drive it away.
Set your car loan budget
Representative example – excellent credit Borrowing 7500 over 4 years with a representative APR of 6.9% and a deposit of £0, the amount payable would be £177 per month, with a total cost of credit of £1,035 and a total amount payable of £8,535.