A car is probably one of the biggest purchases you make. Do you know how to apply for a car loan? Learn more about financing your car loan with us!
Before you begin your application, you must verify your car loan eligibility, have a good credit score and prepare the documents you’ll require.
Car Loan Requirements
To apply, you’ll need to meet the requirements:
• Applicant is at least 21 years old
• Singaporeans and Permanent Residents with a minimum monthly income of S$2,000 / Foreigner with a minimum monthly income of S$4,000
Good Credit Score
The Credit Bureau Singapore (CBS) gathers and compiles information to provide financial institutions and car dealers an overall credit risk profile of the borrowers. Financial institutions and car dealers will look at your credit report to decide whether they will lend to you and the price / interest at which they will lend to you.
So it is very important to make sure to have a good credit history!. Hurting your score is a red flag for approvers and will affect you from getting your auto loan and other important loans in the future.
Here are some tips on how you can improve your credit score:
• Make sure to pay your bills on time
• If possible, do not close your unused credit card/s. This might affect your credit utilization rating.
• Flag out any credit report errors early
Required Documents for Car Loan
• Vehicle Sales Agreement/Contract and log card (if applicable)
• Letter of Employment with details such as company name, job title, years of service and gross monthly income etc
• Information about existing financial commitments e.g. mortgage, personal loan, credit card
• Proof of income (computerized pay slip, or IRAS Notice of Assessment. If your length of employment is less than 1 year, then your latest CPF Contribution history statement would be required)
Fun fact: Do you know that you do not need to have a driving license to buy a car ? However, the car insurance document must have the primary driver’s name on it.
Dream Selection has partnered with reputable financial institutions to provide Customers / you with a fuss-free car ownership experience. We provide in-house loans facilities with competitive interest rates. We also assist our customers in applying for the car insurance.
Feel free to contact us to clear all doubts and help you with your car financing decisions.
Come chat with our in-house finance experts now!
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