How To Get Car Loan Approval In Georgetown

How To Get Car Loan Approval In Georgetown

Posted on June 16, 2021

While the end decision is in the hands of the lender, there is a lot you can do to increase your chances of car loan approval.

Our Georgetown auto loan team outlines a few ways you can help your cause and improve the chances of being accepted.

Know your credit score

Your credit score has a huge influence over car loan approval or rejection. It can determine whether you’re accepted, the amount a lender will give you and the rate you pay.

Knowing your score in advance gives you a chance to improve it if you need to and to check your credit report as a whole to correct any errors.

Correct any errors or omissions on your credit report

While we’re on the subject, credit reports can be wrong. The bureaus deal with millions of records and many millions of entries every day so it’s inevitable that mistakes happen.

Organizations who add notes can also make mistakes. Some of which can prevent you getting the loan.

Spending an hour or two going through every aspect of your credit report and correcting any errors can seriously improve your chances of being accepted for that loan.

If you spot errors, ask the organization that made it to correct it. Otherwise contact Equifax dispute resolution and TransUnion dispute resolution and ask them to make the correction.

Budget carefully

Affordability is a huge factor in whether you’ll get an auto loan in Georgetown. Lenders are obligated to ensure you can comfortably afford the loan and that having the loan will not put you under undue financial pressure.

Careful budgeting, a dispassionate assessment of how much you can afford and paying down other debt where possible will all help.

You may as well do this before you apply for the loan as the lender will certainly do it when you do apply!

Only borrow what you can afford

It’s very easy to be caught up in the moment and want to buy a more expensive car than you can afford. We want to avoid that wherever possible.

Ask to borrow too much and you’ll be refused. Ask to borrow an affordable amount and, all other things being okay, you’ll be accepted.

Use your budget and use an auto loan calculator to work out how much you can comfortably afford to borrow. Remember, affordability is central to lending decisions.

Get prequalified

We liken auto loan prequalification to getting a quote. It’s a quick test to see if someone in your situation, with your income could qualify for a loan if they applied for one.

They aren’t exact and they aren’t a loan offer but they don’t impact your credit score either.

Prequalification is a good way to test your math before you apply for the loan and we thoroughly recommend trying it.

None of these steps will guarantee you’re accepted for a Georgetown auto loan but they can increase your chances. To increase them further, let our team help with your application.

Contact Unique Chrysler for help, advice and competitive Georgetown car finance and leasing.

Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!