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Requirements for a vehicle loan

A vehicle credit is a type of credit offered by banks and financial institutions to help you have your own car. As this is within the high loans offered by banks you have to meet certain requirements to acquire it. Know what banks ask for them.

Are you financially stable?

Are you financially stable?

Automotive loans are granted to people who can prove they have financial stability. This means that, for starters, you must have a clean credit history.

Secondly, you must show that you have a stable job or a fixed income that allows you to meet all loan installments.

Do you have payment capacity?

Do you have payment capacity?

To know that you have the ability to pay the banks will evaluate your income and the amount of debts you pay each month. If there is no balance between the two, it is unlikely that they will give you a vehicle credit.

Remember, ideally, the monthly payment of your debts does not exceed 30% of your income per month. Are you within this range?

Do you have any guarantee?

Do you have any guarantee?

Not all, but some banks are going to ask you to have some good to leave as collateral when requesting a vehicle loan. We advise you to only get this type of loan when you know you can meet the payments.

If not, it could put your home at risk if it is what you leave under warranty for your new car.

Some recommendations before taking out a vehicle loan

Some recommendations before taking out a vehicle loan

As with any loan, compare well before choosing the bank to finance your purchase. Choose the one that offers you the greatest benefits and the lowest annual interest rate.

Do not forget to read the contract well before signing with any entity to avoid surprises. Also evaluate if it is convenient for you to buy a new car or a used car. Keep in mind that a new car represents more expenses, such as annual insurance payment.

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