Jefanie Genilla
I am applying for a car loan but I’m not qualified, can my sister apply in my behalf?
This is an interesting question and sure enough there are tons of people who are also asking this question. So stick around to find out the answer.
Owning a car, be it a second-hand or brand new one, means you’ll have an easier and faster mode of transport to and from work or school. Besides, you’ll have more freedom to go anywhere you want. However, it can become quite frustrating if you’ve been declined by too many loan providers already. Processing your documents is already a long and tiresome process only to be rejected by your prospect provider. Before going to another provider, it helps to know how exactly you get disqualified.
Before we go into how you can get a loan with the help of a sister, brother, mother or anyone else you trust, let’s look at the most common reasons your application for a car loan was declined.
Causes for your disqualification
“Fear of rejection” is a nightmare for many borrowers. And for good reasons. Getting declined means you either have to undergo the long process of loan application again or just give up on your dream of owning a car. Nevertheless, experts say that there are only two main causes of disqualification:
- Bad credit – Like any other financial solution providers, auto loan lenders would ask you for a credit history or record upon application. If they notice that you have pending loans and you’re not very consistent at paying those, they’ll start to doubt your capacity to pay.
- Income < Car Price – simply put, choosing a car that’s worth more than you can afford. Before applying for a loan, make sure that your current cash flow is positive enough to afford the car you want. The good thing today is that there are now a wide range of cars suited to different income ranges. All you need to do is use a car search portal to browse and compare prices and brands.
There’s really no need to worry if either of these two don’t apply to you. Getting approved for an auto loan is just a matter of careful planning and research. Most of the time, successful applications result from the right choice of loan provider. But how exactly can you find a good provider?
Options on many fronts, the answer you are looking for
Loansolutions.ph does not only offer loan options by partnering with a network of good loan providers but they also give borrowers ways or options to get a loan regardless if he/she is qualified. That’s when having someone close to you that you can trust comes in. Just make sure this close friend, relative or co-worker is qualified to take out a loan.
How does it work? Simple, you get this other person to apply for the car loan on your behalf. Say for example, your sister. Your sister can apply for a loan which automatically makes her the car owner since it will be her documents or papers that are used to get car financing. Now, it’s just a matter of agreement on how you two negotiate what comes after receiving the loan and purchasing the car.
You can have a legal agreement drafted and notarized that after the end of the payment term or even before, your sister will transfer the ownership of the car to you. In return, you have to assure your sister that you won’t miss any payment or it will be a negative credit record against your sister and her name and reputation will be on the line. When both of you manage to agree on the intricacies of these arrangement then all’s well.
You can drive your dream car while your sister will feel fulfilled for being able to help you fulfill yours.
Loansolutions.ph launched with the mission to give the public a reliable source of information and loan concierge service focusing on car loan options and a lot of other financing products. With our site loansolutions.ph, the team aims to eradicate the borrowers’ “fear of rejection” by getting her or his name in front of a plethora of car loan providers looking for clients.
