If you are curious to know if it is possible to have two car loans at the same time, the answer depends on your credit rating. But if your credit rating is strongly positive, then you may even apply for more than two car loans at the same time.
Australian lenders are required by government regulation to be responsible in their lending acts in which they need to examine each applicant’s financial conditions. If it is established that you are more than capable to manage two car loans at the same time, there is no reason why you should not have both.
If you are assessed to suffer from undue hardship if the loans get approved, you may find it hard to qualify with banks. However, lenders are more flexible and you can always find one that will approve your loan.
Here are the things that banks or lenders look at in determining the approval of your loan.
- Proof of Income
This is sort of an SOP – to provide proof of your income as this greatly helps in evaluating your capacity to pay for the loan should it be approved.
- Assets and Liabilities Statement
We all know that this shows valuable assets that you own as well as any liability that you may have which in a manner, shows how responsible you are in debt handling. This statement represents your overall financial position.
- Preparedness Indication
This is something that a lender may take a look at to see whether or not you are prepared to take a loan, secured or unsecured. Lenders find secured loans to be favorable to them because they can hold on to some sort of security in case you become unable to make payments. An indication that you are financially equipped increases your chances of approval even if that means two car loans at the same time.
- Credit History
A lender would naturally look at your credit history by obtaining a copy of your credit report once you apply. Contained in it are reports such as loan applications in the last 5 years, any loan repayment default, bankruptcy procedure issues, and other pertinent matters relative to your credit history.
All of these pieces of information will be considered in approving or not approving your loan application because they are indicators of how comfortable you can afford to pay for the loan. You may have a substantial regular income but if your cost of living along with other financial obligations far outweighs your income, your car loan application may not be granted. However, if you can prove that you are financially comfortable, lenders will be more than glad to assist you.
There are plenty of reasons for car loan denial but each individual is assessed on his or her own merits. Whether what you seek is a new or used car, being able to prove that you can comfortably afford to pay for more than one can surely allow you two car loans at the same time.
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