The acceptance of a car loan depends on many criteria such as your income, your debt ratio and your situation. With these elements, financial institutions evaluate your repayment capabilities and measure their risk.
What are your repayment capabilities?
You have found the car of your dreams and, to finance it, want to get a car loan . Very good, but what are the conditions of acceptance of a car consumption credit ? In other words, how do you make sure your loan application is going to be accepted?
In reality, it is difficult to know in advance. One thing is certain: it does not depend on the customer’s head!
Nevertheless, your disposable income, your debt ratio and your personal situation play an important role. Read here to evaluate your repayment capabilities .
To calculate your available income , do not limit yourself to salaries! You can collect income in many ways: dividends from your company, retirement, rental income, unemployment benefits, allowances, etc.
If this income is not certain, in the case of a self-employed worker or in the case of a person looking for work, for example, the credit institution generally asks for more proof to ensure your abilities. repayment in the long term.
The personal situation
In a second step, your expenses are also taken into account in order to evaluate if your disposable income is sufficient to live normally while paying off the self- imposed credit.
This takes into account the composition of the home, your age, the number of children, your ownership or tenancy, your nationality, your status, etc.
The debt ratio
Your debt ratio is another key element in determining whether your car loan application is acceptable.
To do this, financial institutions will ask you to indicate your other loans and will make a ratio with your available income. By crossing all these elements, the credit agency will know if you meet its conditions of acceptance of a car loan.
Of course, all these elements must be justified by official documents. You will need to build a complete file to demonstrate your repayment capabilities.