When you're searching for a vehicle on a budget, opting for a used car is a simple way to save money. If you don't have the cash up front, you may want to choose used car finance. Before applying for a used car loan, there are some steps you should take to increase your chances of acceptance.
Make sure the vehicle has a clean record
Even if you're buying from a dealer, it's advisable to perform a background check to make sure the car has a clean record. Issues such as outstanding finance and incorrect license plates will halt your chances of acceptance. By turning to a company that assesses a car's history, you can avoid such mishaps.
Opt for an insurance policy that matches your credit rating
Many people have a credit rating that's less than ideal. By repeatedly applying for used car finance packages that don't match your score, you could damage your rating further. Before making an application, check your score and choose a package accordingly.
Get your documents in order
Before considering your application, a used car loan provider will need to see certain types of documentation. Such documents may include photographic ID, proof of nationality, pay slips, and proof of address. Ensure each document is valid and as recent as possible to avoid slowing the process down. In some cases, your used car finance company may request documents that are no more than three months old.
Tidy up your credit file first
While credit files are usually accurate, some companies may feature information that's incorrect or out of date. Errors to watch out for include:
- Address mismatches
- Incorrect data regarding poor credit
- Expired debts that the agency isn't recording
Before making an application, check each detail and write to the agency in question if anything on your profile is incorrect. In order to achieve this, you may need to provide proof. For example, if you satisfy an overdue debt, you'll need to provide evidence that it no longer exists. Doing so will increase your credit score and improve your chances of acceptance.
Finally, always make sure you budget accordingly. While it's tempting to opt for a car that's dazzling and beyond your budget if your finance provider suspects you're unable to make the payments they will reject your application immediately. Bear in mind that each rejection appears on your record, reducing the likelihood of securing a loan in the future.Share