If you want to change car but you do not have enough input on your personal account you will have to go through an application for auto credit. Before applying for financing for your vehicle, it is important to know if your current financial situation will allow you to be accepted. To do this, simply check your situation with the law but also with credit agencies. You will know if a car loan is for you or not.
Obtaining a car loan: what does the law say?
According to the law, persons registered with the FICP or Personal Credit Credits Incentive File can not claim a car loan. The fact of being registered on the FCC or Central File of Checks which groups the prohibited individuals of checks or credit card is also a reason for refusal of credit auto. In relation to the law, a person with a very high debt ratio will automatically be rejected by the bank for a credit application. In any case, there are still some credit institutions that do not take this criterion into account. Finally, a car loan is only available to a person of full age.
Obtaining auto credit: the conditions of credit organizations
After these conditions imposed by law, it is now important to ask the question: what are the conditions for obtaining an auto loan from credit agencies?
The acceptance of a car loan at the level of financial institutions takes into account the nature of the applicant’s employment contract. In the majority of cases, an employee on fixed-term or temporary work will have difficulty obtaining a car loan.
It should also be noted that people under the age of 25 and over 70 will face difficulties in applying . Credit agencies also check the debt ratio of each applicant before granting any loan. It is important that this debt ratio does not exceed 33%. The income issue is also taken into account. The banks will not be too interested in what the person earns on a monthly basis, but rather how much money he has to live after deducting the different expenses.
Finally, obtaining auto credit is conditioned the number of years of work within the company of the applicant, the marital situation, etc. The less a person changes their situation, the more likely they are to receive a car loan.