With self-employment at a rise, and with the demand for car loans also increasing. It is important to address the key factors that will help a self-employed applicant obtain a car loan. In essence, the requirements of a self employed applicant are no different from any other applicant. Key focuses would be credit standing and affordability.
Credit standing would be your current score and history. The current credit situation and history will very well dictate the level of difficulty to obtain an approval and also the type of approval the bank will allow to the client. If your credit is in good standing, the process will be fairly fast and optimal results can be expected. If your credit is challenging, approval is still obtainable so do not worry.
Affordability is closely related to your monthly obligations whether it be your rent/mortgage, phone bill, credit card bills etc. in relation to your income. Since a self-employed applicant does not receive a paystub, he will have to prove his income and employment to the banks/lenders. A common approach to prove income for the self-employed is to provide the lender with 6-months worth of banking statements in which the bank will see regular deposits on a monthly basis that will verify income.
Being self-employed gives you the ability to make a living on your own terms; it does not disqualify your option of obtaining a car loan. If you are self-employed and require a car loan, allow Autorama to secure your approval by filling out our online no obligation application https://www.autorama.ca/financing/ or call 416-639-3147 and speak with one of our financing specialists today.