5 Factors Lending Companies Consider When They Check Applications for Car Collateral Loans Red Deer Alberta
Borrowers want to give a good impression to lenders when they’re applying for car collateral loans Red Deer Alberta. But it’s hard to do so when you don’t know how your application will be assessed or the factors to be considered. We’re here to give you a quick glimpse at lenders typically check.
Top Factors Considered in Auto Title Loans
- Collateral’s Value: Your car’s equity is a key factor as it determines how much money you can borrow. Lenders will look at the vehicle’s age, model, mileage, and physical condition.
- Employment History: Lending companies want assurance you can return their money, so they want to see proof of income. Requirements vary depending on how much you’re asking for. The higher your salary, the more money you can borrow.
- Debt-to-Income Ratio: This shows what percentage of your income is eaten up by debt. Lenders want borrowers to have a low debt-to-income ratio. Most won’t take on applications if debt payments take up more than 43% of the individual’s income.
- Loan Terms: Whether it’s for the better or worse, your finances can change drastically over the course of the year. Because of this, lenders prefer a short loan duration as the odds they’ll recoup their investment are better. Asking for an extended payment period could lower your approval chances.
- Credit Score: Most lenders look at your credit score to see how you manage your money. A score of 700 or better makes you a shoo-in for a loan. But car finance firms are flexible in this area since you will be putting up collateral.
Lowest Possible Payment in the Industry
Premier Loans Canada will give you the loan you deserve. The company offers loans as high as $45,000. They have the lowest interest rates and monthly payments around. They also offer flexible payment plans. Sign up on their website or call their toll-free number at 1-855-965-1650.
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