Tips to Find the Best Car Loan for Filipinos

Loans are great for if you want to buy your very own car. Not only will it help you acquire a set of wheels faster, but it will also offer you loads of terrific perks. So if you’re seriously borrowing money to get your dream auto, below are a few pointers to help you find the best car loans for Filipinos.

Know Where to Find the Best Car Loan for Filipinos

There are many channels of car loans in the Philippines. If you want to find the best car loan for Filipinos, then you need to know each one of them. Below are a few examples.

  • Banks
    Basically, the bank will pay for your dream car, and you’ll need to pay them to transfer vehicle ownership from them to you. Also, they usually require a downpayment.
  • Car Dealers
    Car loans for auto dealers work in two ways. Either they have their own in-house financing programs to allow customers to afford their dream rides more quickly, or they’ve partnered with lending companies to do so.
  • Cooperatives or Credit Unions
    Many cooperatives or credit unions also have car loan programs for their members. If you’re a cooperative member yourself, then you would do well to take advantage of their car financing schemes.

Meet the Basic Loan Requirements

Once you’ve picked a loan provider, the next thing to do is to check whether you’re qualified or not. Requirements for personal or car loans in the Philippines usually depend on the bank or lending firm. However, the primary criteria remain mostly unchanged:

  • Philippine citizenship
  • Be of legal age (21 to 65 years old)
  • Steady monthly income (this varies depending on the loan provider)
  • Proof of income
    • Employee applicants must have a minimum of 2 years with his or her company
    • Self-employed applicants must have at least 2 years of profitable operation
  • A Filipino guarantor or co-maker (this requirement is for OFWs and foreigners only)

Consider Other Factors

Next, you need to decide of a couple of miscellaneous details, including (but not limited to):

  • Which Car Fits Your Budget
    You need to be able to pay for the car loan you’re applying for. So best go for the vehicle you can afford. After all, there’s no point in cruising on a shiny new ride if you’re broke.
  • Deals Currently Available
    If the money provider is currently offering any deals for car loans, best study it carefully first before signing on it. That way, you’ll be able to avoid any hidden fees.
  • Getting the Necessary Documents
    Prepare all the documents that would be required by the loan provider. Make sure you have extra copies so you won’t waste time going to and fro printing centers.

Increase Your Approval Chances

While applying for a car loan is relatively easy, and getting it approved is an altogether different story. Luckily, there are ways for you to increase your chances before the application, like the ones listed here:

  • Maintain a Good Credit History
    This is the first thing banks and lending companies will look at when reviewing your loan application. If yours is lousy or non-existent, then your chances would be slim.
  • Keep Extra Credit Cards Open
    Having extra credit cards is a great way to boost your credit history. So you’d better not have them closed before your application.
  • Stay in Your Job
    You need to be employed for at least two years in a company to qualify (See basic requirements above).
  • Be Honest in Your Financial Report
    Best not lie on your financial report as well. Nobody would want to entrust money to dishonest individuals, after all.

The Bottom Line

By reading and following these tips, you’ll be able to prepare yourself accordingly and find the best car loan for Filipinos.

But what do you think? Are there other tips to find great car loans in the Philippines? Let us know through the comments section below!