Credit scoring is a score assigned by banking organizations to assess, at first glance, their client’s ability to repay consumer credit. Auto credit among other things!
Cheap car credit: definition of scoring
What does scoring mean in terms of cheap auto credit? Scoring is the assessment of customer risk. To put it simply, it’s a bit of the global image that the borrower sends back to his banker. We judge his profile, the ability to repay which he is likely to demonstrate when he has taken out a consumer loan and in particular an affected loan. Also, it is important, before applying for a car loan, that the individual carrying a car purchase project has first built up a good financial and personal image.
Scoring criteria for obtaining a cheap car loan?
Scoring is a scoring technique that appeared in the early 1990s. It is important to know its existence to improve your scoring and obtain car credit from financial organizations. Scoring is based on the following criteria:
- activity of the borrower;
- his monthly income ;
- the type of employment contract from which he benefits;
- the expected repayment duration.
Creditors are also interested in the plaintiff’s family situation and his state of health.
How to improve your scoring to get a cheap car loan?
There are many ways to improve your scoring to get the best auto credit rate. For example, in the three months preceding the signing of a loan contract, it is strongly recommended that the borrower avoid unpaid debts, overdrafts, but also save regularly. At the same time, it can subscribe to other financial products. His client scoring will instantly improve.
To find out about the possibilities of your future monthly payments, you can carry out a car credit simulation with the dedicated and free calculators from Good lender.