While car loans are the easiest loans to get, this doesn’t mean that there aren’t things that can keep you from getting one. According to analysts, the most important thing to do when applying for one is, to be honest especially if your credit report is not in good shape. Since automobiles can easily be repossessed, you are less likely to be turned down when you apply for the loan. However, if you are turned down, it might be because of the following.
· Credit report errors
Most bureaus handing your credit report may not have all the facts straight. For instance, you may have missed payment, or you may have a bankruptcy before. If those details are still on your credit report, the lenders might label you as too risky. Although this is wrong, they will not take their time to go out and investigate. If you are sure that you have a good report, you need to obtain a credit report and use the same to dispute these claims.
When it comes to getting an auto loan, previous car repayment schedule is very important. A recent repossession is, therefore, a bad thing when the lender is trying to determine the likelihood of giving you a loan. Because of this, the lender may charge a higher interest rate or require a larger down payment or just restrict the amount of money that they give you as a loan.
· Missing information
Lenders need to see all the information before they can approve your car loan. If you fail to submit even a single item, your loan application process will not be processed. Right from the onset, you are required to avail all the documentation needed to process a doorstep loan. The best thing is, therefore, to comply and provide things such as a proof of income, driver’s license, and your auto insurance information. To learn more about this check out https://www.badcreditsite.co.uk/doorstep-loans/
· No credit history
Having no credit history can also make it harder to get an auto financing. However, if you do not have any credit and it’s your first time, you might qualify for a program that’s designed for first-time borrowers. Most auto finance companies have these programs hence you are likely to benefit from them.
Before approving any car loan, most creditors usually try to determine customers’ creditworthiness. In most loans decisions made, a credit score is used. In addition to things such as job, income, stability, residence and any outstanding debt are used. Although bankruptcy will reduce your credit score making you less attractive, there can be some advantages to this. For more information check out yahoo business.
Apart from these, there are still several things that you can use to boost your creditworthiness. Most importantly, you need to check your credit report and correct any errors that might be there.