According to an analysis made by BNP Paribas Fortis, most people who use a car loan to buy a new car are those who borrow the highest amounts. But even in the face of this need, you have to understand that financial institutions do not lend just any amount. Indeed, there are many factors that define how much a person can borrow. So, before taking the plunge, it would be better to know them.
1- The black list
The first thing the financial institution will do after receiving your file is to check if you have any outstanding loans. Then, she will investigate your repayment capacity. To do this, it will consult the Central Individual Credit Register. If you have ever failed to repay your loan, it will show up in the All Consumer Credit Agreement database. Obtaining a car loan will therefore be much more difficult!
And if you’ve paid off your current loan on time, you won’t have to worry. But if you are behind on some loans, you will automatically be blacklisted. And this point is particularly important for a car loan. Indeed, you will immediately be in the blacklist from the moment the delay in repayment is beyond three months.
For some banks, this is more than enough to deny your credit application. However, other banks still accept this situation, but of course, it comes at a price. To help you in choosing the financial institution, you can very well use a simulation car loan by clicking on finday .
2- Car loan: income and expenses are not left to chance
When you send your credit application to any financial institution with the idea of getting a car loan in mind, you should always add your most recent payslip to your file. Is part of your income also due to rental property? Do you receive alimony? All the details of your monthly income must be specified in your file.
If you are an independent entrepreneur, you must define your basic income, including the intermediate results as well as the most recent personal income tax return that you have submitted. If your income is not fixed every month, you will only have to add up the income over the last six months and average that number.
But in addition to your income, the bank will also ask you for a precise list of your daily expenses. This is how she will be able to define whether you have the necessary funds to make your monthly repayments on time. You guessed it, this point is also very important.
3- Personal history
Contrary to what you may think, your relationship with the bank matters a lot when you apply for credit (for a car loan or other). If you have already applied for a loan from this financial institution and managed to repay everything (on time), this will be an extra point for you.
Finally, know that job security also affects the bank’s decision. If you have a fixed contract or a permanent contract, this will work greatly in your favor. On the other hand, those who only have a fixed-term contract will have a little more difficulty in convincing.
