Wondering why your car loan was rejected in St. Catherine’s? The loan company did not volunteer why you were refused the loan? Applied for an auto loan online and didn’t get the response you wanted?
There are multiple reasons why your car loan was rejected by the lender, but there are four main factors we come across all the time. Our St. Catharines auto loan team explains.
The Four Main Possible Reasons Your Car Loan Was Rejected
- Credit score and history
- Employment status
- Errors on the application
Credit Score and History
Your credit score is just one factor in assessing an auto loan application but it is an influential one. If you have a less than perfect credit score, it can impact your ability to borrow.
You can overcome this by borrowing less, putting more money down yourself, improving your credit score or paying down any existing debt you have.
Every St. Catharines auto loan application is subject to an affordability check. This is to make sure you can afford the repayments and to satisfy the lender that giving you the loan won’t put you in financial difficulty.
Affordability is down to your income, outgoings and existing levels of debt. If you don’t have much left at the end of the month once all your bills are paid, you may find it difficult to pay the loan, which may cause you to fail the affordability test.
Employment status is less of an issue now than it used to be. Not that long ago, self employed, contractors and gig workers would have a lot of trouble with St. Catharines auto loans. Now, lenders are more understanding of the different ways we can make a living.
That said, you still have to go to great lengths to prove your income. The more evidence you provide and the more it looks like you earn, the more likely you are to be offered the loan.
Errors on the application
Errors on a St. Catharines auto loan application are more common than you might think. It could be as simple as putting the wrong birthdate on the form or putting a decimal point in the wrong place in your earnings. These mistakes are easy to make.
To avoid this, double check your loan application before you submit it. If possible, have someone else check the form too, just in case.
You can avoid all these potential reasons for refusal by working with auto loan experts. A team who can walk you through every aspect of applying for an auto loan, preparing the paperwork, proving affordability and making sure there are no mistakes on the form.
A team who are experienced in St. Catharines auto loans and who can get you the loan you need.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!