What to Do If You Are Denied a Car Finance Loan
Once you are in the market for a new vehicle, you must find a lender to work with as you deal with the car finance aspect of your purchase. Unfortunately for many buyers, the car finance aspect of buying is what stops them from being able to purchase the car they want. If you’re concerned you might not find someone to approve you for car finance reasons, you should know what could stop a lender from approving your car finance application.
The number one reason people are turned down for car financing is their negative credit history. Australian residents are expected to pay their bills on time and stay on top of their financials, but that’s not always the case. There are some very common reasons you might be denied the car finance you’re looking for once your credit history is viewed by the lender.
– You have many late payments on your credit history report
– You have too much credit card debt
– You didn’t make payments to creditors
If you’re looking at a denied Car Finance Stratton application and know you’ve not made late payments, missed payments, or used too much debt, you might have some errors to fix on your report. Now is the time to contact Veda Advantage so you can see a copy of your report and fix the errors that have been marked on it. Sometimes human error is unavoidable, and you cannot help but take time out of your own life to fix mistakes caused by others who made a mistake.
Lack of Income
You must have enough income to purchase a car and get car finance loans with a lender in Australia. If you’re not working, you’re not getting a car. If you’re not able to show you have an income because you’re paid cash, you’re not getting a loan. If you were laid off, you’re not getting a car. You do have the option to use another asset in your name as collateral to get some car finance approvals from lenders, but now you are risking that item.
Tips to Help You Seek Car Finance
Before you look for a loan for a new car, check your credit. If there are mistakes, dispute them and have them corrected. Get your financials in order, too. If you can prove you do have income and that you are working hard to get your financial life in order, you might find a lender willing to work with you on the car finance portion of your shopping experience.
Bad credit financing is available with certain lenders, but it’s not going to do you any favors to look for bad credit financing if your score is incorrect or if you really cannot afford it. Try exhausting your other options before you seek approval from a bad credit lender. Just because they issue approval for a loan doesn’t mean they’re the best option.