With the increasing road users in todays world there is a bigger demand for personal car finance to obtain your vehicle of choice. But have you been applying for numerous loans but are continually being rejected? If that is you there maybe some good reasons behind why your getting your finance approval declined. This article contains the reasons behind being rejected and ways you can be more successful in getting your loan.
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New Road Users
If your a new road user who has set out to buy a new car you maybe needing a little help to pay for the loan. This is where car finance comes in handy. But if you have no credit history and only a small deposit to begin with your usually a candidate for rejection.
In this scenario a bank will require a bigger deposit up front, or they may want a better more sustainable income to support your borrowing. These may not be something that can be fixed easily as you may only be establishing yourself in the professional world.
With getting finance there is always an option for you to get your money. Banks may ask you to have a guarantor to go in with you as it gives your bank reassurance they will get their money back. A guarantor usually will be a family member, Husband or Wife, or a close friend.
If this then fails and the banks still don’t accept your application form with a guarantor your only option is to negotiate with a longer term of payment or accept poor terms and interest rates. This is what banks refer to as loans mark ups. Don’t get caught out!
Bad Credit History
For People with bad credit history this is a major concern for banks as they know you have had difficulty in the past paying back their loan. When you have bad credit history you generally get caught shopping around for many loans. This may seem your logical choice but every time a bank logs into your file it makes a note of your application which can hurt your credit rating.
This is a big part to why you wont have success getting the money to finance your car purchase. Another step to make sure you have better success in getting your loan is making sure all your credentials are filled out correctly. In order to do this you will need to have an understanding of what all the fine print means on your contract. This will allow you to provide all the correct identity and bank details ect.
These are the many frustrating things that will prevent you from obtaining your loan. But one reason you may be getting rejected is you may be borrowing too much money.
In order to get the loan you may have to rethink the car you are buying. If you are buying a new car it might be a better option to look for a similar car in the used vehicle market. Or maybe selecting a lesser expensive option.
Hopefully after reading this short article it may have enlightened you to the reasons your not getting loan approval. Realising it is an annoying process it is best to have all credentials ready at hand for the finance company to approve.
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