People are living longer and better. Pensioners are very reliable with their payments.
Still, it is difficult to get the loan.
Offer credit collateral – get application approved
Anyone who offers loan collateral on a car loan with 72 years of age will be able to increase their chances. A surety is often a great way to convince a bank. If the guarantor is responsible for the loan, an application can be granted. A family member is most likely to guarantee a loan.
The guarantor must be of legal age in order to be able to sign the loan agreement. In addition, income must guarantee that the loan installments will be repaid. It must be available for attachment and for an unlimited period. In the event of a loan default, the surety will assume the remaining debt on a car loan at the age of 72.
This allows the bank to approve an application without loss. It will be able to claim the money if the borrower is no longer able to do so.
Residual debt insurance – better not
Many banks want to do big business with car loans. With a car loan at the age of 72, it always happens that residual debt insurance is offered. The pensioner is informed that he will not receive a car loan without this credit security. That’s not right.
The bank wants to award residual debt insurance primarily because it makes money from it. Pensioners often took out life insurance decades ago. This can serve the same purpose as a residual debt insurance. The residual debt insurance causes high additional costs. These are unnecessary. This insurance is worthwhile for real estate loans.
But if the car loan is taken out for a used car at the age of 72, it is too expensive and, above all, inappropriate. If the bank insists, another provider should be found.
Advantage as a long-term customer
Many pensioners have been with the same bank for decades. This can be an advantage for a car loan at 72 years old. If the loan amount is not very high, a small loan can often be taken out without a loan security. If the loan is higher, a family member can act as a surety.
The child or grandchild must have an income. Otherwise, an application for a car loan at the age of 72 will be rejected. The credit bureau of both will be checked. A loan comparison can show whether the house bank’s offer proves to be cheap.
If a loan has been paid off at the bank in the past, this can also be an advantage. The customer is then considered to be very reliable with regard to his obligations.
The bank will make a positive decision faster.
Credit comparison from the Internet
If you don’t have your own computer at home, you can ask your grandchild if you can look at a loan comparison together. If the offer of the house bank is available, this can be compared with offers from the Internet.
A loan comparison is not a loan request and is free of charge. So the applicant can take a look around and look for a loan. The intended use should be adjusted so that the lender knows that it is a car loan. In the case of a non-binding offer, the age and income must be stated.
Applicants should also include credit security here. So the interest rate can be adjusted to the creditworthiness. Applying for a car loan at the age of 72 is the same as applying to the house bank.
Car loan at 72 years old – requirements
Since a regular income consists only of the pension payment, it is important that the credit bureau is excellent. There must be no entries. The same applies to the guarantor or second applicant who is offered. The account must not be in the red and there must be no current loans.
If these basic requirements are met, the loan collateral is considered. A guarantor or a second applicant must meet the same conditions as the borrower.
There must also be an attachable income. The employment contract must run for as long as the loan term is valid.
Otherwise, loan security cannot be accepted.