What To Do After Car Loan Rejection In Oakville
What To Do After Car Loan Rejection In Oakville
Posted on June 9, 2021
Nobody likes rejection. That’s especially true if you had pinned your hopes on the outcome or needed the loan for a car for work. If your auto loan has been rejected, what happens next? Is there anything you can do after car loan rejection?
Our Oakville auto loan team explains.
Find out why
The obvious first step after car loan rejection is to find out from the lender why they rejected your auto loan application. Some will be more forthcoming than others but they should all provide a justification for their decision.
Ask the lender why they rejected it and whether there is anything you can do to change their mind.
We don’t mean a brown paper envelope. We mean asking them what can you change about your current position that would get them to agree to the loan. That could be paying down existing debt, saving for a larger down payment, improving your credit score or something else.
Take stock
Next, take a step back and assess your situation. Depending on what the lender said, if anything, you need to take a good look at your situation tackle the reason you were refused.
That could be:
Improve your credit score – If you had insufficient credit score for the amount you wanted to borrow, now is a good time to begin improving the score. Our blog covers this a lot so you have all the information you need right here.
Save for a larger down payment – Putting more money down reassures lenders as you have skin in the game. The larger the down payment you can afford to make, the higher your chances of getting the Oakville auto loan.
Clean up your credit report – If it was an error or something on your credit report, get it addressed. Contact the organization that made the error or talk to TransUnion or Equifax
Build up a positive payment history – If it was a history of missed payments that got you refused, get a credit card and begin using it. Set up automatic payments and begin building a positive credit history again. It takes time but it works.
Pay down existing debt – If it was your existing credit utilization ratio that stopped you getting the loan, begin paying down as much of that debt as possible.
The magic number is 30% utilization. The closer you are to that number, or the more below it you are, the higher your chances of getting the loan.
Borrow less – You can also just borrow less and buy a cheaper car. If you don’t have time to save more for a down payment, don’t have much debt, or mistakes on your credit file, simply borrowing a bit less could mean the difference between being accepted and not.
Work with Oakville auto loan experts – We won’t be able to change a lender’s decision but we can help paint your application in the most positive light. We can also provide an idea of how much you could borrow and the likely outcome of an application.
We also have a wide pool of lenders who regularly lend to people in all kinds of situations. So, whatever your credit score, whatever your credit history, we can help you find a loan.
Contact Unique Chrysler for help, advice and competitive Oakville car finance and leasing.
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