Will having money owed on a credit card affect my car loan? Repayment ability is the key

Nowadays, many people take loans to buy cars, but the bank that applies for the car loan will check the credit report to understand the applicant's credit, debt situation, etc. And owing money on a credit card is also a type of debt, so will it have an impact on applying for a car loan? Let’s analyze it below.

Will having money owed on a credit card affect my car loan?

Although you can apply for a car loan if you owe money on a credit card, it will have some impact on the car loan. This mainly depends on how the bank estimates your repayment ability based on your credit card debt. After all, repayment ability is one of the important basis for banks to approve loans. There are usually two results:

< p>1. If the credit arrears are small, the debt is low, the income is high, and the applicant has a strong repayment ability, the bank will definitely be happy to approve the loan. After all, the cardholder’s income will not only repay the credit card debt, but also have enough money to repay the loan. For car loans, in this case, you don’t have to worry about the applicant being overdue.

2. The credit card debt is large, accounting for most of the applicant’s monthly income. The remaining money has to cover daily expenses. It is already difficult to repay the car loan, and sooner or later there will be a break. Due to risk considerations, the bank may refuse to approve the loan because it will question the applicant's repayment ability unless the applicant pays off the credit card balance before applying again.

The above is the relevant introduction to "Will having money owed on a credit card affect the car loan?" I hope it will be helpful to everyone. In short, having credit card arrears will affect the car loan. If the arrears are small, the impact will be smaller, and if the arrears are large, the impact will be greater. If you want to successfully apply for a car loan, you can first reduce the credit card debt ratio by paying off all credit card debts before applying, or applying for installments.

How much impact does an overdue credit card have on car loan purchases?

The impact is quite large. If a credit card is overdue once, if it is repaid in time and does not exceed three months, it will have little impact on the car loan application and you can apply normally.

Documents required for car loan:

① Original ID card, household register or other valid residence documents, and provide copies;

② Occupation and economics Proof of income, personal account statement for the past 6 months;

③ Car purchase agreement, contract or letter of intent to purchase a car signed with the dealer;

④ Other documents required by the cooperative agency .

Car loan application process:

① First, the borrower needs to prepare ID card, residence certificate, work certificate, loan purpose certificate and other supporting materials, go to a bank and fill in a Please submit an application form and fill out a contract.

②Then, wait for the bank’s pre-loan qualification investigation and approval. If the borrower meets the loan conditions specified by the bank, the bank will notify the borrower to fill in some loan form materials. If the loan applied for by the borrower requires a mortgage or guarantee, it is also necessary to sign a guarantee contract, a mortgage contract, and go through mortgage registration procedures; if the application is +++++, there is no need to sign such a contract.

③Secondly, banks issue loans to lenders. Generally, banks will issue loans after approval within 2 to 3 weeks or 1 month, and the loan can be released as soon as 1 day.

④Finally, the borrower pays the down payment to the car dealer and goes through the car pick-up procedures with the passbook and the car delivery note issued by the bank.

Note: In the process of applying for a personal car consumer loan, the applicant needs a copy of the ID card, household register, marriage certificate, income certificate, bank statement, real estate certificate, etc. formalities.

Can I apply for a car loan if I have a credit card debt?

If I have a credit card debt, I can apply for a car loan. When a user applies for a car loan, as long as the bank or auto finance does not require the user to pay off the credit card debt, the user can handle the car loan business normally as long as there is a debt outstanding. Credit card debt has an impact on car loans. Banks or auto finance will require users to pay off credit card debt in advance.

Therefore, when users apply for car loan business, banks or auto finance do not require users to repay previous arrears, so previous arrears will not have an impact on this car loan.

A car loan refers to a loan issued by a lender to a borrower who applies to purchase a car. Car consumption loans are a new loan method that banks issue RMB-guaranteed loans to car buyers who purchase cars at their authorized dealers.

The interest rate of automobile consumer loans refers to the ratio of the loan amount to the principal issued by banks to consumers, that is, borrowers, for the purchase of self-use cars (non-profit family cars or commercial vehicles with 7 seats or less (inclusive)). The higher the interest rate, the greater the repayment amount the consumer will have to pay.

The borrower must be a permanent resident of the location where the lending bank is located and have full capacity for civil conduct.

The term of automobile consumer loans is generally 1-3 years, with a maximum of no more than 5 years. Among them, the loan period (including extension) of second-hand car loans shall not exceed 3 years, and the loan period of dealer car loans shall not exceed 1 year.

Car loan application process: First, the borrower needs to prepare ID card, proof of residence, employment certificate, proof of loan purpose and other supporting materials, go to a bank, fill out an application form, and fill out a contract.

Then, wait for the bank’s pre-loan qualification investigation and approval. If the borrower meets the loan conditions specified by the bank, the bank will notify the borrower to fill in some loan form materials. If the loan applied for by the borrower requires a mortgage or guarantee, it is also necessary to sign a guarantee contract, a mortgage contract, and go through mortgage registration procedures; if the application is +++++, there is no need to sign such a contract.

Secondly, banks issue loans to lenders. Generally, banks will issue loans after approval within 2 to 3 weeks or 1 month, and the loan can be released as soon as 1 day.

Finally, the borrower will hand over the down payment to the car dealer and go through the procedures for picking up the car with the passbook and the car delivery note issued by the bank.

In the process of applying for a personal car consumer loan, the applicant needs a copy of the ID card, a copy of the household register, a copy of the marriage certificate, a proof of income, a bank statement, a copy of the real estate certificate and other procedures.

Will having too many credit cards affect my car loan? These consequences are serious

Having a car and a house is the life that many people long for, and now many people choose to take loans to buy houses and cars. However, banks will check the applicant's credit standing when approving a loan, and use the cardholder's credit card and loan status to understand their debt situation, repayment ability, etc. So, the question is, will having too many credit cards affect your car loan? Let’s find out together below.

Will having too many credit cards affect my car loan?

We all know that when applying for a credit card, the bank will check a lot of information, including the number of credit card accounts. If you hold too many credit cards, the total credit granted by other banks may be too high. In this way, It will affect your car loan application.

But this does not mean that banks will definitely refuse loans if you have too many credit cards. After all, the number of credit cards is only one aspect, but not the main one. The point is that banks will look at your personal credit report and debt situation. , if you are rejected by the bank, it may be because your credit card has the following conditions:

1. Have a bad credit record

Bad credit will affect the car loan, especially If the loan is overdue for more than 3 months, overdue for more than 6 times, or even three times in a row, it is basically hopeless to apply for a car loan. Of course, if the overdue loan is not serious and the loan is repaid immediately after the overdue period, the bank may still approve the loan as long as the repayment ability is good.

2. High credit card debt

If you have multiple credit cards in your name, the overdraft limit of each credit card is 80%, and the minimum repayment limit is often required, or the number of installments is too high. If you have more money, it will give the bank the feeling that you are short of money, and the bank will think that you are not able to repay the loan, and naturally it will not easily approve the loan.

In short, too many credit cards will indeed affect the car loan. It is recommended that when applying for a car loan, it is best to cancel a few unused credit cards if possible, and then pay off the debts of other credit cards to reduce the debt ratio. Apply for a car loan later, so the success rate of approval will be higher.

Will the number of credit cards (debit cards) affect the car loan?

The number of credit cards (debit cards) will not affect the car loan. Nowadays, many people take loans to buy things and enjoy early consumption. Although the number of credit cards (debit cards) will not affect the car loan, other factors of the credit card (debit card) will affect the car loan, so it may appear during the application process. The situation cannot be applied for when applying for a car loan. The main ones are as follows:

1. Overdraft on your credit card (credit card) limit: If you are overdrafted on each card, you will not pay back the full amount when you repay. This actually means that your credit card limit is overdrafted. The more credit cards (debit cards) you have, the more debt you will have, or if you think that you are using your cards to support your credit cards, you may not be able to pay back the money at that time, so you dare not give you a loan.

2. The credit card (debit card) has a bad credit record: not repaying on time, delaying the payment for a long time, and the credit is reduced, resulting in the inability to apply for a car loan.

That’s it for the introduction of whether credit cards affect car loans.