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What Proof of Income Do I Need for Car Finance

Proof of Income requirements for Car Finance

Lenders are becoming more effective at confirming a borrower’s income.

They’ll need to know your income and employment status:

  • Full-time
  • Part-time
  • Self-employed
  • Retired
  • Pension payments
  • Student
  • On benefits (Universal Credit or Tax Credits)
  • Unemployed

By giving the lender knowledge of your monthly income and any additional payments, an affordability check protects you by ensuring you can afford to borrow the amount you request and that you won’t overstretch your finances, getting into financial difficulty.

The usual request is proof of income copies of your payslips or bank statements for two or three months. You’ll need to upload copies of any documents. Your statements must show your name, account number, sort code, and all transactions.

Alternatively, you may get an invite to use Open Banking, which can be most helpful if you are self-employed or have a bad credit score. Open banking is a secure way that lets the lender verify your income and expenditure and see how you manage your money, helping them decide whether to give you a loan. Previously only your bank had access, but now, you can choose who can see with open banking. All you need do is go online and open your bank portal, select the account your income goes into and then give permission to share your bank details with the lender. They can then efficiently calculate your affordability.

How many Payslips do I need for Car Finance?

Lenders must check your income to ensure you can afford the monthly repayments before they give it to you. Payslips are proof of income. You’ll need to provide three monthly payslips as a part of your car finance application.

Can I get Car Finance without proof of Income?

There are many reasons why someone might not be able to demonstrate proof of their income when applying for a car loan.

You may be unemployed, self-employed, on a pension or benefits and have difficulty providing proof of income. However, we have a large panel of lenders available, some of which accept car finance applications with no proof of income through open banking.

Working with car finance providers specialising in bad credit car finance and open electronic checking (open banking) allows customers without proof of income to find the best deal.

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Am I Eligible for Car Finance

Your car finance eligibility will depend on the lender that you apply with. Each lender has different eligibility criteria that they consider.

However, you must be over 18 years old and have been a UK resident for at least three years to qualify for a loan.

What Documents Do You Need for Car Finance

Lenders need documents/paperwork when you apply for car finance to verify you are who you say you are, protect you from identity theft, and ensure they don’t borrow more than you can realistically afford.

What Checks are Done for Car Finance

Applying for car finance can be a reasonably stress-free experience. However, as you would expect, the lender must carry out specific checks to verify and protect your identity and establish you can afford repayments on the amount you want to borrow.

What Proof of Address Do I Need for Car Finance

Most car finance lenders require borrowers to have been residents in the UK for a minimum of three years before they will offer car finance.

Not being able to get car finance because you’ve recently moved to the UK and cannot provide an address history can be frustrating, especially if you can easily make the repayments. That explains why car finance for non-UK residents does not exist.

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