Depending on your professional situation, banks will be more or less reluctant to grant you a loan, which can result in less attractive rates, a lower loan amount, an extension of the repayment period or even, in the worst case, a categorical refusal. Are you wondering about your borrowing capacity and the feasibility of your project as an unemployed person, self-employed person, self-employed person, temporary worker, intermittent, student, apprentice? To help you see more clearly, it’s here: apply for a car loan based on your professional situation.
Apply for a car loan based on your family situation
Your family and marital situation is an important criterion for obtaining a car loan, the fact of being married or in a civil partnership, having or not having dependent children, receiving allowances, alimony, etc. enters into the estimate of your repayment capacity. You may be wondering how to get car credit as a single mother? For the title loans this is important.
Understand the rate, interest, and cost of your car loan
- Understanding auto credit
- Personal contribution
You can, if you wish, directly inject a sum of money to finance your car loan in a complementary way. It is a positive signal sent to your creditor which testifies in particular to your ability to save. However, this is not necessary, it is quite possible to take out an auto loan without personal contribution.
How to choose the duration of your car loan?
The duration of your credit will impact not only your maturities but also the total cost of your credit: the longer it is, the higher the total cost of credit will be. However, you should not opt for a credit that is too short which will inflate your monthly payments, you must find the right balance that takes into account your repayment capacity.
Among the criteria to be met, banks will not lend you above a certain debt ratio, the limit being usually set at 1/3 of disposable income.
The debt ratio is obtained as follows: amount borrowed × 100 / fixed income (net salaries + other fixed income) = debt ratio. Be careful to only take into account your regular income: bonuses and other exceptional income are not included in the calculation of your fixed income.
What is the maximum repayment term for an auto loan?
The maximum term of your loan is 84 months for the purchase of a new car and 84 months for the acquisition of a used vehicle.
Insuring your credits is not compulsory but constitutes an additional security which can be welcome: in the event of a problem, your insurer takes care of the payment of your monthly payments , or even of your credit balance depending on the case.
Among the risks it prevents are:
- The death
- Temporary incapacity for work
- Absolute and definitive invalidity
- Job loss (dismissal from a permanent contract)
There are two ways to insure your auto credit:
Auto loan insurance offered by your lending organization: a unique offer with simplified membership formalities, with potentially attractive rates depending on your profile.…