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.
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 licence, and will typically 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. Others may require alternative documentation. Typically, this may be a passport, and supplementary information like your full name, date of birth, residential and marriage status may also be requested.
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 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.
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.
Car finance checks made easy
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.
If you have any questions about the application process and documentation required for car finance, contact My Car Credit today on 01246 458 810 or email email@example.com.
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Evolution Funding Ltd T/A My Car Credit
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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!