Car finance eligibility

Most lenders will evaluate your finance application using the following eligibility criteria:

Credit Score and History: One of the most critical factors in determining car loan eligibility is the applicant’s credit score. A higher credit score indicates a lower risk for the lender, making it more likely that the loan application will be approved.

Income and Employment Stability: Lenders assess income to ensure you can afford the loan. A steady and reliable source of income provides assurance to the lender that the borrower can meet their monthly payments without undue financial strain. Even if you are on benefits, lenders will still consider you – as long as you can show you can make the repayments.

Deposit: The deposit is the initial amount paid by the borrower towards the purchase of the vehicle. A higher deposit can improve the chances of loan approval, as it reduces the overall loan amount and demonstrates the applicant’s commitment.

Debt-to-Income Ratio: Lenders evaluate the applicant’s debt-to-income ratio, which is the percentage of the applicant’s income that goes towards paying off existing debts. A lower ratio indicates better financial stability and an increased likelihood of loan approval.

Loan Amount and Term: The amount of the loan requested and the proposed term are crucial factors. Lenders consider the loan amount in relation to the applicant’s income and financial capacity. Additionally, longer terms may result in higher interest rates, impacting eligibility.

Guarantor: Depending on the lender’s policies, having a guarantor with a strong credit history can improve the chances of loan approval, especially for applicants with lower credit scores. The guarantor agrees to make the loan payments if you are unable to.

Employment History: A stable employment history demonstrates financial stability and the ability to meet financial commitments. Lenders may consider factors such as the length of employment, type of employment, and any recent job changes.

Outstanding Loans: Existing loans and credit card balances can affect eligibility. Lenders assess the applicant’s total debt burden and how it relates to their income.

Insurance: Some lenders may require the applicant to have comprehensive insurance coverage for the vehicle, providing additional security for the loan.

Our Process

The CarMoney process means you can be approved for car finance quickly and easily. It takes just two minutes to apply securely online.

If you know what car you want, we’ll need the details of the car. If you haven’t settled on the right car yet, we can help you find the ideal vehicle.
You can get a decision within an hour.

All you need to do is sign the paperwork. Then you can collect the keys for your car.

The checks we carry out won’t leave a mark on your credit file, and there are no hidden fees. You’ll know exactly how much you will repay each month.

At CarMoney, we will work hard to find the car loans you are eligible for, that offer the best possible terms.

Get a quote or contact CarMoney today.