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Taking a car loan as Pensioner

Even if you are living the retired life, you can still get a car loan from a variety of lenders. These days, lenders don’t only go through your loan application if you have employment. They look at several other factors to see whether you can repay the loan on time. With these four tips, you take a car loan as a pensioner:

Check your credit history

Going through your credit history is a must, to know where you stand. There are several websites and credit unions that will give you your credit history. Once you have this information, you should go through the data to see if there are errors or mistakes.

When you come across such inaccuracies, make sure you report back to the credit union. If your credit score is below 600, you can’t approach a bank, as they will reject your loan application. Even if they are willing to give you a car loan, you will have to pay high rates of interest.

List out your sources of income

As you are no longer employed, you need to prove to the lender, that you can repay the car loan on time. Even you would think twice if you had to lend money to an individual, who hasn’t made it clear whether he/she can repay you on time. If you have sources of income, such as retirement accounts or pension, you need to obtain the necessary documents.

Select a car

It is essential you select the right car, as you don’t want to get bogged down by expensive monthly payments, which will affect your style of living. Note down the features you want in a car, before you start looking for vehicles.

Approach a lender

Once you have information on your fingertips, you can start approaching lenders to see their rates of interest. If you don’t want to travel, you can always check out the lender’s website to understand how much they charge for the car loan. Remember to go through all the terms and conditions of the car loan, before you sign their documents.

When you follow these tips, taking a car loan as a pensioner becomes easy!


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