Am I a Good Candidate for a Car Loan in Burlington?

Am I a Good Candidate for a Car Loan in Burlington?

Posted on June 28, 2021

Most people in most situations can get an auto loan if they need to. While some people are regarded as a lower borrowing risk than others, we provide finance to all kinds of people in all kinds of situations. But are you a good candidate for a car loan in Burlington? Do you think you present a low borrowing risk? Would you qualify for a low interest rate?

Credit score and credit history

Lenders use your credit score and overall credit history to assess whether you’re a low risk borrower or not.

They don’t know you. They have likely never met you and so they have no idea whether you’re good with money or not. All they have to go on is the loan application, your supporting paperwork and your credit history.

Someone who has a high credit score and has never missed a payment is regarded as a low risk.

Someone with a good or fair credit score with a couple of missed payments would be regarded as a medium risk.

Someone with a low credit score with a more troubled payment history would be regarded as a higher risk.

Income

The amount you earn is irrelevant in everything aside from affordability. It’s the regularity of your income that’s most important to a lender.

If you have had the same income for months or years, you will be regarded favourably as you have reliable income.

If your income is more sporadic and the amounts of payment periods change regularly, your application will be scrutinized much more closely.

Job/career

Lenders don’t concern themselves with what you do for a living, only that you have a stable, reliable source of income.

If you have held the same job for years with a stable income, your auto loan application will be looked upon favourably.

If you change your job frequently or have periods of unemployment, your application will be looked at much more closely.

If you’re self employed or a contractor, you’ll need to demonstrate that you have regular income and that you will have that income for the foreseeable future. As much as possible anyway.

Financial situation

Your financial situation includes current debt levels (credit utilization), other forms of debt (credit mix), payment history, time at your address, amount you may have in savings, any income other than wages or salary, the amount of down payment you have, whether that down payment will wipe out your savings and other factors.

Burlington auto loans

While that may all seem a lot, the average Canadian is always able to be a good candidate for a car loan. As long as you can afford the repayments, have some kind of stable income and aren’t carrying too much debt, you will be able to qualify for a loan.

If you need help with anything to do with Burlington auto loans, contact our team. We would be happy to help.

Contact Unique Chrysler for help, advice and competitive Burlington car finance and leasing.

Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!