What do lenders look for when giving out car loans?
I want to buy a car, and am considering applying for a car loan.
What do lenders look for as a bare minimum to get a loan?
I have no possibilities for a co-signer, I have been in the same job for 3 years, so I have steady income, and I live at home so I don’t pay rent/mortgage.
Also, what lenders are usually more willing to give loans? Banks, credit unions, etc..?
Thanks!
Here are some factors that lenders consider: credit score, employment and proof of income, residential address, value of car to finance, length of terms, downpayment, current loan standings or recent credit records.
Since you have a steady job, a stable income and a house you fully owned, you can easily get a car loan. However, the amount they will lend to you and the annual percentage rate of interest they will impose will be affected by the factors i mentioned above.
Banks offer better interest rates and are more quick in their approval and release of loan amount. So, I would say, you check the banks first.
Ken
http://www.carbuyhelp.com
1-800-951-4714
A friend of mine got a car from a car sales showroom. They just need to know that you can pay it back as you have had a regular job for 3 years you have a good chance, it helps if you have credit before like a loan or credit card.
August 15th, 2010 at 8:38 amReferences :
Credit unions are definitely the best as most of them will take a more personal approach to looking at whether or not you are credit worthy in a given instance. The rest comes down to financing a vehicle that is within your means, financially. Good luck!
-TJT
August 15th, 2010 at 9:15 amReferences :
personal experience in finance
Its just that auto loans lately been a challenge to get these days. The online places are fast and sometimes less paperwork.
My friend recently used http://auto.deal4-you.com
August 15th, 2010 at 9:47 amReferences :
Here are some factors that lenders consider: credit score, employment and proof of income, residential address, value of car to finance, length of terms, downpayment, current loan standings or recent credit records.
Since you have a steady job, a stable income and a house you fully owned, you can easily get a car loan. However, the amount they will lend to you and the annual percentage rate of interest they will impose will be affected by the factors i mentioned above.
Banks offer better interest rates and are more quick in their approval and release of loan amount. So, I would say, you check the banks first.
Ken
August 15th, 2010 at 10:03 amhttp://www.carbuyhelp.com
1-800-951-4714
References :