Declined an Auto Loan? What to Do Now
Don't be discouraged when you have been declined an auto loan. Each lender has specific guidelines that must be followed in order to be approved for an automobile loan; and each lender's guidelines vary.
Every financial institution has certain criteria that must be met when being approved for an auto loan. When one lender declines your loan, move on to the next financial source. Each lender has differing minimum qualifying credit scores, and required length at current residence and employment for an auto loan approval. Banks, local finance companies, and online credit sources, are all options to check into when an auto loan request has been declined. Car loans are attainable for individuals with low credit scores, late payment histories, and even bankruptcies.
It is important to obtain a free credit report and review all accounts, open and closed, for information accuracy. Any inaccuracies can be reported to the credit reporting agency for correction. Consumers need to do some preliminary work and either meet with a finance officer in person, or apply through an online company and communicate via an online chat with a financial representative. Many banks offer convenient online applications that can be completed without a person-to-person meeting.
Your first, and sometimes second auto loan applications may be declined, but do not let that deter you from trying other loan agencies. As each company's interest rates vary, so do the credit qualifications.