You are not alone if current economic conditions are making it impossible for you to keep up with your finances. The Covid-19 crisis has resulted in widespread job losses and a significant drop in overall company revenues. Loans serve as an invaluable gateway to get us closer to our financial goals, whether it’s buying a home, a car, or supporting your child’s college education.
Owning a car used to be a big deal. Also, it was a lengthy process that required a lot of documentation. Today you can book a car within a few days and drive home without much effort. As you know about the current social distancing norms, it is not safe to travel on public transport. Owning a car has become all the more important. If you are planning to take one car loanyou must also verify the eligibility of your car loan to avoid later loan rejection.
Verifying the eligibility of your car loan is essential as multiple loan declines can negatively impact your credit score. Lenders will review your credit score and credit report at the time of approving a car loan application. So what happens if you check eligibility for a car loan online and don’t qualify for a car loan?
Here are some ways you can improve your car loan eligibility:
The most efficient way to improve your car loan eligibility is to opt for a longer term or term. This is because, for the same interest rate and principal amount, a longer term results in lower monthly payments. Lower EMIs improve the borrower’s solvency and eligibility for auto loans. It is also advisable to use a Auto Loan EMI Calculator to review and better plan your monthly EMIs.
- Improve your credit score
Before granting a car loan, your individual creditworthiness will be thoroughly checked by the bank. It reflects your creditworthiness and is required for the correct assessment of your financial situation. If you have good credit, it would be easy for you to get a car loan. Paying your credit bills on time and minimizing debt can significantly improve your credit score.
The total loan amount granted to you depends on your income level. In addition to your credit rating, income is another decisive factor. A higher and stable income reflects that you are financially able to repay the car loan amount. It convinces the lender of your ability to repay and significantly increases the chances of a loan approval.
- Apply with a competitor
If your income is too low or your credit rating is poor, you can also opt for a joint loan with a co-applicant. This would improve your overall look car loan claim and increase the chances of admission. Adding a co-applicant also allows you to avail a higher loan amount. Make sure you repay on time as a delay in repayment can affect your creditworthiness for both you and the co-applicant.
Use an auto loan EMI calculator
A car loan is a popular financing tool for your own dream vehicle. However, you need to be cautious and prudent in managing the loan – especially in repaying the loan amount. Make sure you plan your repayment efficiently by using an auto loan EMI calculator. Banks like Axis Bank offer cheap car loans with a term of up to 8 years. You can apply for a car loan online at attractive interest rates.