Frequently Asked Questions
How do The Car Loan Centre make their lending decisions?
We base all our Car Finance underwriting decisions on you as an individual and your circumstances, and do not use your credit score. Our underwriting process is as follows:
We start by requesting a few documents
- Proof of ID
- Proof of Address
- Last few months' bank statements
Secondly we perform a credit search to review your financial history. Once this has been completed one of our underwriters will determine your affordability by reviewing your income and expenditure using your bank statements. On completion of this, we will be able to determine a monthly figure that is affordable to your individual circumstances. Once approved you are passed back to your Sales person to arrange a Collection/Delivery date for your new vehicle.
What is a credit score?
A credit score is the numerical value calculated from information in your credit file that is used by lenders and others to assess your "credit risk" at that time. A total number of points (a credit score) helps to predict how creditworthy you are, that is, how likely you are to repay a loan and make the payments on time. Credit reference companies calculate scores in different ways, but all use a complex mathematical model to take into account factors like payment history, amounts owed, length of credit history, new credit and types of credit, among others. This score changes over time to accurately reflect your current financial behaviour. In order to ensure that credit reports are fair for everyone, certain factors are not included in your score. To name just a few, race, religion, national origin, sex, age, salary and any other information not proven to be predictive of future credit performance are never included in calculating your score. A large number of lenders use a credit score to make a decision about your application. Often the process is automated and your credit score will determine whether your application is approved. As a lender, we do not use a credit score, preferring to consider your current circumstances and your ability to repay.
What is a credit search?
A credit search is a report of your financial history; for the most part, your history is paying debts and other bills. Credit Reference Agencies provide information received from credit reporting companies and banks that can be made available to a third party, like lenders. In addition to identifying information, credit reports include information like the number and types of accounts you have, payment history, collection actions, ourstanding debt, age of your accounts and any public records among others. It also includes a list of credit searches that have been carried out on you and any related party. Whenever you apply for a credit card, loan etc. the company you apply to requests a copy of your credit report from one of the credit reporting agencies. As a lender, we always ask your permission to carry out a credit search, but it is a standard part of our application process and we would not be able to fully asses your application if you are unwilling to have a search carried out.