Make a car loan by being single, it is possible. Unlike married couples who offer the guarantee of a co-borrower, or even a double salary, the single person contracts his loan alone. It is a situation that irreparably leads to certain specific conditions. Here is all you need to know when you live alone and want to apply for a car loan.
The requirements for applying for a car loan as a single person
It is quite possible to take out a car loan when you live alone and you are single, but you must first meet certain conditions:
- have a stable job
- collect regular income
- do not exceed the debt ratio by 33%
- have not had any incidents on his bank account for a long time
- not to be stuck or over-indebted
- provide the necessary documents for the constitution of the file.
In the case where all these conditions are met, in other words, if the plaintiff is solvent in every respect, there is absolutely no reason for the bank, or the lending institution, to refuse to grant credit. self to the single person.
When we talk about singles, we also think of single mothers with children, single fathers with children, divorced people, widows, and so on.
The benefits of getting a car loan for a single person
The advantages of taking out a solo loan are numerous:
- If all of the conditions above are met, the Single Borrower will not need a co-borrower or a guarantor to make the request. This gives him unparalleled freedom of action: to owe nothing to anyone can provide some relief and avoid the stress of being indebted to someone for something.
- There is also the pride of being able to accomplish one’s own project alone, without the help of anyone. This can provide a certain pleasure and a real personal satisfaction.
- A single person can nevertheless choose a co-borrower or a guarantor, whatever it is, in order to contract his car credit safely and with more serenity.
- Another advantage, and not least, depending on its ability to repay, the single person has the full freedom of choice of the vehicle (new or used), the duration of its credit, and the amount of monthly payments that he will have to honor.
The disadvantages of taking out a car loan solo
However, there are some disadvantages of applying for a car loan when you are single:
- Who says a single salary, says a single source of income, and therefore says a lower borrowing capacity . As a result, banks and other credit agencies will be more observant, even reluctant, to grant or not the car loan to the applicant.
- Because of a single salary, it is more common for the single person to have to settle for a used car : new cars are often out of reach because too expensive …
- On the other hand, in the case of a borrowing without co-borrower and without a guarantor, security is even less guaranteed . Indeed, in case of non-repayment of one or more monthly payments, the Borrower will have to assume the situation alone, with all the complications that come with (over-indebtedness, account lock-up, banking ban, banking at the Francia Bank, etc. )..
To conclude, a single person can fully apply for auto credit, but it must have beforehand all the advantages and disadvantages that it incurs before embarking on such a project of indebtedness solo …