I know they pull your credit, but do they all so contact your employer, references, and verify how much $$ you have in your checking account?
2007-12-19 06:46:04 · 7 answers · asked by syko_mom 1 in Cars & Transportation ➔ Buying & Selling
It depends on the lender. If you have good credit, then many times they won't require anything except your information. They will want to know your employer, income, residency and so on, however they don't always call to verify.
If you have shaky credit, then they might want a verification of employment or residency and sometimes both. When the lender replies to your application, if there are any concerns, they will do a conditional approval. This means that you are approved for the loan as long as you can provide the items they require
The reason for references is in the event you default on the loan, they have contact people who may know where to find you. I hope this helps.
2007-12-22 07:26:34 · answer #1 · answered by The Auto Evaluator™ 7 · 3⤊ 0⤋
1
2016-09-26 11:33:17 · answer #2 · answered by ? 3 · 0⤊ 0⤋
They check your credit report first. If you are over a 700 or so, they will stop there. The lenders feel if you have that level of credit, statistically, you pay your bills. It's all about risk for them.
If you are mid 500s to mid 600s, you can count on them wanting you to prove your income. If you are a W2 employee, your paycheck stubs will do. If not, some lenders allow you to use your most recent bank statements, showing your deposits, to prove it. They don't care how much money you have in there, only that you deposit what you say you earn and have NO nsfs. They will probably call your employer to make sure you work there, but not your references. They are ther so they can track down people who skip out. They will sometimes ask toy to prove your address. This is done with a utilities bill, cable tv bill, sometimes your proof of insurance (you will have to have that anyway), or cell phone bill.
If you know you are over 700 FICO, don't worry and good job. If you are like the rest of us somewhere lower, then take the documents I mentioned, leave them in the car and give them to them if they ask. Good Luck!!
2007-12-19 08:06:00 · answer #3 · answered by Bramst 3 · 2⤊ 0⤋
Credit Report only. At least that's all that anyone has ever checked on me for any of the 10 various car loans I've had over the past 20+ years.
But my credit is really good. So once they get the credit report, there's probably no need to check further. If someone has marginal credit, they probably do delve further into your credit by checking employment, bank balances, etc...
2007-12-19 06:48:42 · answer #4 · answered by kja63 7 · 0⤊ 1⤋
Bank and employment and if in the past you skipped payments or made late payments on an existing car loan.
Another reason is because you might be over extended, which means you have more bills coming in than income.
They have to make sure you have the ability to repay the loan, and if you have too many bills or no money in the bank how will you be able to handle this loan?
2007-12-19 08:14:27 · answer #5 · answered by Anonymous · 0⤊ 2⤋
It isn't so much that they check your balance as much as they check your deposit history to verify that you are consistently making deposits from employment. They will also verify employment and your references to establish that your address is correct.
2007-12-19 06:53:46 · answer #6 · answered by Miss Motor Mouth 4 · 0⤊ 2⤋
Bank balances, employment, income. credit info
2007-12-19 06:49:09 · answer #7 · answered by wizjp 7 · 0⤊ 2⤋