Car finance is a way of making the process of purchasing a new or nearly-new vehicle easier, allowing you to spread the cost of your car over a series of affordable repayments.

In order to secure car finance, you may need to provide important personal information, so it’s useful to have certain documents and information to hand. Read on as we outline the checks that are usually done for car finance.

What checks are done for car finance?

The most important checks for car finance tend to be a financial assessment, where lenders will ascertain your employment history and income status, including a credit check. But there are other pieces of information that car finance providers will often ask for in order to gauge whether you’re a responsible borrower or not.

Driving licence

It’s essential that you have a valid driver’s licence when applying for car finance. Without this, you will most likely be rejected.

The car finance provider may contact the DVLA in order to check the authenticity of the driver’s licence. They will also contact the DVLA if you have lost your driving licence, and will usually ask for other proof of identity at the same time.

Proof of identity

For some car finance providers, your driver’s licence will qualify as enough proof of identity. They can cross-reference it with the personal details you’ve provided, as it shows your name, address and date of birth. Others may require alternative documentation. Typically, this may be a passport. If you haven’t entered it as part of your car finance application already, supplementary information like your full name, date of birth, residential and marriage status may also be requested.

Other personal details you may be asked include your current job title and employment details, like whether you’re employed or self-employed. Marital status is another box you may have to fill, though it isn’t going to be a deal breaker in any lender’s criteria.

Address and history of address

Your car finance provider needs to ensure that you’re not making a fraudulent application, and that you’re unlikely to attempt to evade repayment. Asking for your proof of address is one step in the process of confirming this, as it makes you traceable.

You’ll usually be asked for your proof of address history for a minimum of the past three years. This can be in the form of utility bills, council tax and bank statements. You’ll also need to demonstrate your current address, too.

Employment history and proof of income

Expect to be asked about your employment and provide details of your salary and job title. A bank statement will usually be asked for, but payslips and the details of your employment may suffice. If you’re self-employed, you’ll need to provide further documentation.

If your lender feels that you may miss repayments, then your application will likely be rejected.

Credit report

If you have a history of making repayments in a timely fashion, then you’ll have a better credit history and a higher score. Your application is, therefore, more likely to be greenlit.

That said, there are ways of getting car finance even with a poor credit score – you just need to determine whether your finance provider will do so.

What is your finance company checking for?

We’ve covered what checks are done for car finance. But why are they being done? In short, car finance companies need to make sure your car finance application meets their own criteria.

Checking your identity

First and foremost, there are basic checks to ensure nobody is committing fraud. Car finance companies want to know you are who you say you are, for obvious reasons. That’s why they’ll ask for your driving licence and other proof of identity. You’ll also need to provide your address and typically prove that with bank statements or utility bills.

Assessing your reliablity

Other checks are done to assess your reliability for car finance. In other words, how likely are you to keep up with monthly car finance payments? This is primarily done through your credit report, which assesses your credit history.

A car finance company can complete a soft credit check or hard credit check to do so. Soft credit checks provide an overview of your credit report, such as a poor credit score. On the other hand, hard credit searches provide a more in-depth look at your credit history, such as missed payments.

Reliability is also assessed through employment history and address history. If a car finance company sees that you’ve been in and out of jobs, it indicates an unstable financial history. Similarly, looking at the past few years’ address history make raise some flags if you’re constantly moving home, as some people do this to avoid debt.

Looking into affordability

Your credit report isn’t the only thing finance companies use to decide whether you’re accepted for car finance. Another key factor is affordability. Put simply, can you afford the loan repayments on your finance application?

Naturally, an important check here is employment. Your finance company will want to see stable income to ensure you can make monthly payments over the course of your agreement. Additionally, they’ll look at other financial commitments you have. Somebody could be earning a great wage, for example, but already paying out big sums for their mortgage, phone contract, and an existing personal loan.

Checks completed for over a large panel of lenders

There are a number of checks that need to be done when processing car finance. But they don’t have to be a hassle. At My Car Credit, we aim to make the process as simple as possible, with fast and easy online applications.

As a trusted car finance broker, we compare car finance deals from a large network of lenders. That gives you the best of both worlds – the ability to compare deals for your new car without having to provide proof of identity and complete various checks with different lenders.

Additionally, we’ll only perform a soft credit check initially. That means you don’t have to worry about a hard credit check leaving a mark on your credit file, only to be rejected when you apply for car finance. We only use hard credit checks when applications reach the later stages, so you’re much less likely to be rejected.

If you have any questions about the application process and documentation required for car finance, visit My Car Credit and check out our handy online finance calculator to begin your car buying journey.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating


  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed


  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs


  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit


  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past


  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan

X monthly repayments of

Typical rate

Loan amount

Total payable




*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!