Things Banks Want to See You Have Before Giving an Auto Loan

You’ve been eyeing that car for a long time, even if it’s a slightly used one. If you’re currently not able to purchase that on a lump sum, your next option is to get a car loan. The only catch: your credit isn’t good.

If you’re among those with a not-so good credit history, hope is not necessarily lost. Two of Canada’s biggest banks, Royal Canada and Toronto-Dominion, report growth by 25 percent and 11 percent respectively for 2011, allowing them to set aside funds for bad loans. This enables them to give you a car loan should you apply, although there are certain strings attached. Namely, they want to see four things in you.

They want to see your current address

By this, it means they want to see you at your current address for at least a year. It’s simply because they don’t want to hop over there one day, only to find it’s just an empty spot. The longer you stay at the same address, the better your chances in their eyes.

They want to see you have a steady income

Obviously, you should have a means of making money, and a steady one at that. Whether it’s a job or a home-based business, you must show you have money coming in. No lender wants to risk giving you a car loan if you don’t have that. After all, you need some way to pay your bills as well as your car payments, insurance, and maintenance expenditures.

They want to see a phone in your name

Supposedly, there's a saying used car toronto loan officers frequently use: no phone, no loan! Similar to the address factor, they want to be able to reach you should they need to. No lender is going to take you seriously if you don't have your own phone, or at least a phone bill in your name.

They want to see you have a job

Many used car toronto lenders want to see you at your current job, particularly for at least one year. They might contact your employer to gauge you a little more, especially on your ability to pay. The longer you work for that employer, the better your chances of getting financed by that lender.

To recap, used car toronto lenders want to see you have a phone in your name, a job or some steady means of income, and a place to stay at for at least a year. Once they see little to no reason to doubt you, you’re pretty guaranteed to get a loan to buy the car you want. You can read more about them at Dummies.com and EzineArticles.com.

Stelle Courney - About Author:
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