I Had My Car Loan Application Rejected. What now?
If you have had your car loan application rejected, then you’re not alone. Every year, thousands of people apply for car loans here in Australia. While most people get their loans approved and processed, many loan applicants get loan rejection instead.
Most people who get a loan rejection simply reapply for a car loan elsewhere. However, in almost all cases, their application gets rejected elsewhere too. This is because once a loan application gets rejected, the applicant’s credit score takes a big hit.
Fortunately, you’ll be glad to know that even if you’ve had your car loan application rejected, you can still reapply for a new loan and get it approved.
While you can take steps to improve your credit situation, you can also take the help of professional consultants to get the car you need now to keep you on the road. Professional car finance consultants such as Loans for People with Bad Credit can help you obtain your next loan successfully.
Let’s take a look at what steps you need to take to improve your credit score. But first, you should know the possible reasons why your loan application was rejected in the first place.
Why your car loan application may have been rejected
There can be many reasons why your car loan application may have been rejected. Some of the common reasons for a car loan rejection include:
- Defaults in your credit history: If you have made defaults on your credit card bills or your bills are overdue, lenders may reject your application.
- Your current employment status and income: If you’re not employed currently, and your income is very low, lenders may reject your application. Also, if you’re self-employed and you have not submitted all required documents, your application may have been rejected.
- Outstanding debts: If you have too many outstanding debts and you don’t have enough savings in your bank account, lenders may reject your application.
Whatever the case may be, if you have faced a car loan rejection, it is because your credit situation is weak. Lenders are afraid to offer you a car loan because they are unsure if you can manage to make repayments on time.
Steps to take before you apply for a car loan again
If you have had your car loan application rejected, then you need to take a few steps before you reapply for a loan. First of all, you should obtain your credit report and review it for errors. Fixing errors can improve your credit history significantly.
You should also minimise your existing debt as much as possible. If possible, pay off your existing debt completely before you reapply for a car loan. However, if it isn’t possible, you can always consolidate or refinance your debts to shrink them to some extent.
You’ll also need to improve your current financial situation. If you’re self-employed, make sure to arrange all required documents to prove your income. And if you’re unemployed, you’ll need to show lenders some viable income.
Finally, be careful with your finances. Create a budget and stick closely to it to build some savings. Don’t approach lenders before you have saved some amount and have reduced your existing debt. By taking all of these steps, you’ll significantly increase the chances of your loan application getting approved.
How Samantha Smith obtained a car loan after a loan rejection
Samantha Smith is a hard-working woman from Melbourne in her late twenties. Currently employed in a clothing store, Samantha felt that her income was more than enough to cover her bills and rent. She decided to apply for a loan of $10,000 to purchase a second-hand car. However, her loan application was rejected.
Despite Samantha being employed with a steady income, she had an outstanding debt of almost $4,500 on her credit card. She also had very little savings in her bank account. These reasons led to Samantha’s application being rejected.
While Samantha was disappointed, she soon realised that it was up to her to turn things around. It took her a few months, but she started building savings and paid off a large part of her debt. When she reapplied for the car loan, this time it was approved.
Other available options
You can certainly repair your credit situation, pay your debts and reapply for a car loan after being rejected once. But do understand that it will take some time. If you need a car loan immediately, then you should consider the help of professional consultants such as Loans for People with Bad Credit.
At Loans for People with Bad Credit, we specialise in helping people with bad credit obtain car financing. We have access to several leading and trustworthy lenders, and we can help you obtain a car loan even after you’ve had a loan rejection.
Our consultants will work closely with you to assess your situation and match you the correct lender for your needs. Our expert car finance consultants know just what lenders look for in a loan application. They can help create a compelling loan application for you which won’t get rejected.
Obtaining a car loan after you have had your first car loan application rejected is not easy. But, Loans for People with Bad Credit can help you out. We’ve helped several people like yourself obtain car loans after they had their first loan application rejected. You can count on us to improve the chances of your loan application getting approved.
Apply for a second car loan with us today!
If you have had your car loan application rejected and you’re looking for a new loan, you should take the help of professional car finance consultants. Professional consultants such as Loans for People with Bad Credit will connect you to the best lender for your needs.
With us, you can rest assured that your car loan application will get approved this time around. We’re your best bet if you want to maximise the chances of obtaining a second car loan.
Get in touch with us to take to one of our car finance consultants today!
No comments yet.
Sorry, the comment form is closed at this time.