The documents to prepare for your car financing application

A car financing application that drags on is almost always a question of missing documents. When your file is complete from the start, the lender can review it without going back and forth, and your approval lands much faster. At Beaucage Auto Credit, we have been working with people who have difficult credit for more than 25 years, and we see it every day: preparation makes all the difference, especially in second or third chance credit.

Here is exactly what to gather before you begin.

Your photo identification

The lender has to confirm who you are. Plan for:

• A valid piece of photo identification: a Quebec driver’s licence issued by the SAAQ, a passport or a health insurance card;
• Ideally two pieces to speed up verification.

Make sure your documents have not expired: an expired piece alone can hold up the whole process.

Your proof of income

This is the heart of the file. The lender does not only look at your credit score: above all, it wants to confirm your ability to repay. Depending on your situation:

• Salaried employee: your last two or three pay stubs, and sometimes an employment letter stating your position, your seniority and your salary;
• Self-employed: your notices of assessment for the last two years and your financial statements;
• Additional income: a pension, an annuity, benefits, support payments or rental income; any stable income counts and strengthens your file.

The clearer and steadier your income, the more comfortable the lender is, even if your credit history is imperfect. Want to see right away what your payment would look like? Run the numbers through our payment calculator before you even submit your application.

Your proof of address

The lender has to confirm where you live and how stable your situation is. One of these documents usually does the job:

• A recent bill (Hydro-Québec, phone, internet) in your name;
• A bank statement or an account statement showing your address;
• A lease or proof of ownership.

Residential stability is reassuring: if you have lived at the same address for a good while, mention it, it works in your favour.

Your banking information

To release the financing and set up your payments, we will need:

• A void cheque or your complete banking information;
• Sometimes your bank statements for the last few months, which show sound management of your account.

Statements without NSF cheques or repeated overdrafts send an excellent signal, whatever your score.

Building a file that speeds up approval

A few simple habits save days:

• Keep everything in one place: a digital folder or a paper file;
• Check the dates: recent documents and nothing expired;
• Be transparent about a bankruptcy, a consumer proposal or past late payments: hiding it only slows the process down, while a lender specialized in second chance credit or third chance credit is there precisely for those situations;
• Have an idea of the vehicle you want and your down payment, if any.

An honest, complete file is what turns a “risky” application into an approval. And if your credit is under repair, a well-managed loan becomes a powerful credit rebuilding tool, since every payment is reported to Equifax and TransUnion.

Ready to apply?

You do not need every paper in hand to get started. Submit your credit application online: it comes with no obligation, an advisor reviews your file and calls you back within 24 hours, whatever your credit. We then walk you through, step by step, the documents needed to finalize your financing quickly.