If your car loan application has not been approved, then you most likely have a lot of questions about why it has occurred. Lenders don’t always provide you with exact reasons why you were declined, which is why you should do everything you can to get your credit rating in order so you’re more likely to be approved.
It’s vital that you know what went wrong and what you can do to improve future applications. Lenders analyse your spending habits, and in the end, they want to trust that you will be able to pay them back, and on time.
Here’s what to look at:
It’s the first thing that lenders will ask to see and want to know. Are you getting regular income on a full-time basis? Are you a casual staff member that works some or most of the week? Do you have any income at all? Providing pay history is the most significant part of their decision-making. You’ll find that if you don’t get paid regularly, or enough to make the repayments, it is more difficult to get approved.
Your lender will want to know where you work, what position you hold and if the company you work for is stable. They may even ask how long you have been with the company itself. This will help them determine whether you are in a position to be able to repay your loan and if you are secured in ongoing work.
How is your credit card debt looking? Do you even own a credit card? Have you taken out a home loan recently? These are all things that lenders factor in. Remember that they are in this business not just to provide you with a loan, they’re also in it to make money. Lenders will look at your credit history and will perform a full credit check. The full credit history includes present and previous loans and if there have been overdue payments or defaults. It would be a good idea to speak to a broker who may be able to give you advice on how to increase your credit score.
For more information, or help with your car loan, feel free to contact Simply Finance online or call us on 1300 115 263.