4315 North Service Road, Burlington, ON, L7L 4X7
My Garage

What to do if your car loan application is rejected in Brantford?

What to do if your car loan application is rejected in Brantford?

If you need a car but your car loan application has been rejected, what are your options? What can you do if you need a car to get to work but cannot afford one?

This is a situation many find themselves in and is something we can definitely help with.

First thing, don’t panic. Just because one lender rejected a loan application doesn’t mean others will too. Second thing, don’t apply for any more car loans just yet. Too many hard inquiries in a short time will lower your chances even further.

Overcoming car loan rejection

Car loans are usually rejected for one of 5 reasons:

  1. You want to borrow too much
  2. You have bad credit
  3. You have an insufficient credit score
  4. You don’t have sufficient income or sporadic income
  5. Your application included errors

There are other reasons why a car loan might be rejected but these are the common ones.

What do you do next?

Find out why the car loan was rejected

The lender may not volunteer the information but they should provide it if you ask. If they don’t state the reason at the time, call them and ask. Be nice. Be polite and request the reason your application didn’t make it. This will form the basis for what you do next.

Address the rejection reason

Only when you know why your car loan application was rejected can you do something about it.

  • If you were trying to borrow too much – Consider buying a cheaper car or lowering the loan amount. This should fix it. If it’s down to your income to debt ratio, pay off other debts before reapplying.
  • If you have bad credit – Work with a bad credit loan specialist. We work with a range of lenders who specialize in bad credit car loans. You may need to combine this with other steps but where there is a will, there is a way.
  • Insufficient credit score – You can borrow less, use more of a down payment, use a co-signer or pay off existing debt.
  • Insufficient or sporadic income – This is harder to address. You can borrow less, get another job, use a larger down payment or improve your financial situation in other ways to overcome this.
  • Errors in your application – This is the easiest to fix. Look at every line and every entry on your car loan application and fix whatever it was you got wrong. Then discuss it with your lender and explain the situation.

Nobody likes rejection but it’s a fact of life. What you do next will define you. We can help.

 

Lets get in touch!

Categories: News, Resource

Tags: , ,