January 17, 2020

Car loan what conditions – here are the facts


Lenders then check the customer’s creditworthiness and this must be impeccable. With a car loan, what requirements, for example, must the customer’s credit bureau be clean.

There should also be sufficient income.

Car loan what conditions?

Car loan what conditions?

If you want to take out a car loan, you have to meet certain requirements. Banks generally do not grant credit until they have checked the customer’s creditworthiness. This includes checking the income as well as querying the credit bureau, both facts must be correct, otherwise the car loan can be rejected as to which requirements.

Generally, lenders must be of legal age and should not be older than 70 years. If you want to take out a car loan, you must be able to pay a loan after deducting all expenses. Banks therefore recommend that you check your personal financial situation yourself before applying for a loan. A loan application should only be made if there is a surplus in this check.

It is better to submit a loan request than a loan application. Especially if the borrower is somewhat uncertain about his credit rating. If a loan application is rejected, this process appears in the credit bureau.

Car loan what conditions – creditworthiness

Car loan what conditions - creditworthiness

In the case of a loan, a distinction must be made between creditworthiness and creditworthiness. While many consumers are creditworthy, some are not creditworthy.

Car loan, what are the requirements?

Basically it is sufficient income and the clean credit bureau that lead to a good credit rating. In order to have the best conditions for a car loan, you should have a regular income that comes from a self-employed activity.

For example, employees who have a permanent job can look forward to their credit check more confidently than those who have a temporary job or a probationary period. The second important requirement is the perfect credit bureau.

If the borrower has negative entries, the number of lenders is drastically reduced.

Car loan what conditions – negative credit bureau entries

Car loan what conditions - negative credit bureau entries

The following entries ensure that the borrower no longer allows credit. If so, he pays horrendous interest that makes a loan no longer affordable. This includes a payment order. This reminder is still one of the softer features in credit bureau.

The enforcement notice then looks a little different. There will be no credit here. The same applies to an arrest warrant for outstanding outstanding debts. Even with an affidavit, the credit opportunities don’t look good.

Unfinished loans follow, and lenders are very reluctant to do so before granting a loan. In contrast, lenders could be found with some negative entries such as a reminder but not paid mobile phone bill. In addition to the credit bureau, it is the regulated attachable income that allows a car loan which conditions.

Car loan what conditions – unemployed, pensioners and students

Car loan what conditions - unemployed, pensioners and students

Employees have a much better chance of getting a car loan than this group of people. Unemployed people, pensioners and students, on the other hand, are often left out when it comes to requesting a loan.

For an unemployed person it is the reduced income. Nevertheless, there is also unemployment benefit that is relatively high. Nonetheless, unemployed people will be rejected by most lenders because unemployment benefit is a government benefit and cannot be seized.

In the case of a pensioner, the meager pension can also lead to a loan refusal. For banks, however, a reason for rejection is often the age of the applicant. Banks often no longer grant loans to 70-year-old pensioners. Although pensioners regularly receive their earnings, age can make a dent in a loan.

It looks similarly bad for students. Most receive Financial Aid or still work part-time. Even so, income may still be too little for a car loan.

Car loan what conditions – lender

Car loan what conditions - lender

If you are looking for a cheap car loan, you can do it with a loan comparison. It is therefore important to find out the purchase price in advance. This sum is then used as the basis for the loan comparison. It is entered with the selected term.

With one click you will be able to see the installment amount and the interest rate. If the rate does not fit, it can be changed with a corresponding term. With a long term, the credit rate becomes lower, with a short one, higher. The interest rate will also change with the term.

The interest rate that is displayed does not apply to all customers. This will depend on the customer’s creditworthiness. So if you have a good credit rating, you will also receive a low interest rate. In general, the credit rate should always be adjusted according to income.

What remains in the month can be determined with a budget. If you choose a long term, you have to assume that the loan will be somewhat more expensive overall.

Car loan what conditions – residual debt insurance

Car loan what conditions - residual debt insurance

Many lenders offer the customer residual debt insurance when taking out a loan. This protects against death, unemployment or disability. However, these insurance policies are expensive. They only make sense if the loan amount is high and the term is long.

With a small loan it is rather inappropriate. Anyone who decides to take out residual debt insurance should read the contract carefully.

There are many restrictions where the insurance company does not pay. The insurance only applies to unemployment if it has occurred through no fault of your own.