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Am I Eligible For Car Finance?

For many drivers, the question that they might be thinking about is perhaps, “am I eligible for car finance?” To answer your question, all you need to do is check your status on a car finance eligibility checker. It is helpful to new drivers and people who are busy and need a service that is straight to the point, easy to use, and helps you through the step-by-step process. 

How do I check my eligibility for car finance and how does the checker work? The most important thing to consider before checking is knowing the amount you want to borrow. You can provide an approximate amount if you’re still unsure of the exact amount. You can always finalise it later. Some car finance companies can lend anywhere from £2,000 and £50,000, and the more accurate the amount you input, the better match you’ll get.

This article will also help you with how to increase your eligibility for car finance UK and get you ready for your car finance application. Read along to know more about whether you’re eligible to get car finance. 

How’s Your Credit Score?

The process of getting finance to purchase a new car can be an intimidating task for some people, especially since there’s no assurance that your application will be granted. So before you start applying for one, remember, there are requirements for getting car finance in the UK and you have to be ready to undergo a car finance eligibility check. It is also better to verify your possible eligibility through a car finance eligibility calculator and car finance eligibility checker UK.

It is also highly recommended to review your credit score before you apply. You can quickly check your credit score online, which may cost you little to nothing. An excellent credit score is important because some low-priced deals are only accessible to those with great scores. If your credit score is not that superb, you can still secure credit, although you may have to shell out more for the deposit. 

Errors in your credit history can significantly affect your score and therefore offers that may be available to you. It may lead you to high-priced deals, or worse, refusal of your application because of the incorrect entries in your report. So, it is essential to check your car finance eligibility UK for yourself first before you begin applying for car finance.

Although a good credit score may be important for getting a good finance deal, it doesn't necessarily mean you can't get access to funding. For example, you may have success with a specialist funder through a dealer or broker. Specialist funders exclusively work with clients who have average to poor credit scores. The only downside here is you will have to pay a higher monthly fee, or interest, since you’ll be considered a greater risk. But paying on time every time throughout your contract will help improve your credit score too, and give you an advantage next time you apply for financing.

What are the Requirements for Car Finance?

Who is qualified for car finance? Generally, most people between 18 to 79 can apply for car finance. But to be sure, you may like to call and ask your chosen finance provider for their specific age criteria. Another minimum requirement for getting car finance is of course a regular income, and evidence of affordability. You will need to meet the requirements to pass the car finance eligibility check UK.

Being employed full-time or part-time will give your application a higher chance of being accepted. Finance companies feel more confident lending money to employed people because they know they will be more able to afford and pay the monthly repayments.

Even if you’re not employed, you may still be eligible for car finance by showing proof of income. Those who are self-employed or retired may opt to follow this direction, and this may work with some lenders. You can use a free car finance eligibility check to know you chances of getting a loan. 

Another requirement is of course proof of identity. You will need to present your passport or driver’s licence. Non UK nationalities can apply for car finance as long as they already have a credit history in the UK, and the other requirements above. 

How to Apply for Car Finance

Be Truthful

First, don’t make false statements and claims. For example, be honest with the lender if you have a lower credit rating or an unstable employment status. Making a false claim on your application is not a sensible move as finance companies can easily detect fraudulent information. You can be in trouble for fraud, and as a consequence, you can’t apply for car finance for several years.

Get a Guarantor

If your credit score is insufficient, you can always get a guarantor. Guarantors are people who assure finance companies that they will pay on your behalf in case you’re unable to. You can’t just get any guarantor. They should be at least 21 years old and with a decent credit history since they will be covering the cost of payment for you in the event that you miss payments. Again, this is a feature offered by some lenders, but not all.

Know the Application Process

Before applying for car finance, make sure you have done your research. It’s better if you call the lender in advance and ask for their specific requirements and the finance options that are available for you. By doing this, you know what to anticipate and can take action. You may also ask the lender about the details of the application process first to make sure that your application entries are correct. with Carmoola you can of course make an application on the app and you will get a decision within just a few minutes, as applications are checked using an automated process and open banking facilities. 

Read and Understand the Agreement

After you have done all the things mentioned above, it’s time to complete your application. It is important that you read everything carefully. Ask questions if something is unclear to you before you sign. Don’t be afraid to ask for help from your lender as they are trained to assist you with your purchase.

The process of a car finance application is basically collecting all the important and necessary information about you and putting it in the proper sections of the form. The information should include correct details regarding your income and spending, present and past addresses, etc. These pieces of information can be easily verified by the finance companies and will determine your eligibility for financing.

Takeaway

Take advantage of a car finance credit checker to gauge your credit score and how you’ll fare on your car finance application. There are a lot of free credit checkers online with no obligation of tying you down immediately to an application. And don’t worry because another good thing about checking your eligibility through an online checker is it doesn’t affect your credit score, and will give you an idea what to expect  A simple online search will direct you to the best place to check car finance eligibility online. Or simply use our calculator. Try it today!

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