What to do Next when you're Rejected a Car Loan in Freelton

What to do Next when you're Rejected a Car Loan in Freelton

Posted on March 16, 2022

If you were turned down for a car loan in Freelton, you may feel angry and have every right to feel that way. No one likes rejection, especially for something as important as buying a car.

Our goal is to provide you with the tips you need to get a car loan and start living your best life.

Understanding why your loan was rejected

Whenever you apply for credit and are rejected, the lender needs to provide you with a reason (this is usually vague to protect themselves from lawsuits) and the credit reporting agency they used to make their decision.

You will need to sign up with TransUnion or Equifax and review your credit report.

Most mainstream lenders make lending decisions based solely on the credit score. Suppose your credit score does not hit a pre-determined limit.

In that case, your application is rejected before an actual human being looks at your application!

The minimum credit score for a prime-interest rate credit score is in the 700 range, and most lenders need a credit score of 650 to even be considered.

If your credit score is on the low side, you can get a Freelton car loan, but you will need to use a different approach.

How to improve your credit score

All types of gimmicks are advertised online that claim to help boost your credit score (for a fee, of course).

These gimmicks are not worth the money, you can simply implement these suggestions, and your credit score will start to rise in no time at all.

Look over your credit report with both Equifax and TransUnion, do not presume they are both identical; they are not! While looking over the reports, you should take note of any accounts that are past due or in collection.

These negative items will have a detrimental impact on your credit score; you should deal with those items as soon as possible.

Negative items on your credit report will stay there for up to six years and will not go away until they are paid. Your credit score can start the healing process by bringing all of your accounts up to date.

Another item that will impact your credit score is how much debt you are carrying in relation to the total amount of credit you have; this is referred to as your credit utilization rate.

Try to reduce your total amount of debt; you will raise your credit score and save money on interest in the process.

Best place to get a Freelton car loan approved

When trying to get a car loan, even when other lenders have turned you down, your best option is to go to a local car dealership that offers second chance financing. In addition, these dealerships will have access to special lenders that offer loans to borrowers with credit challenges.

You will be charged a higher interest rate, but you will be able to get a car right away and rebuild your credit at the same time.

After a year or two, when your credit score is higher, you can refinance your current car loan or buy a brand-new vehicle after a year or two.

Now that you know what to do next when you're rejected a car loan in Freelton, you should begin reaching out to the dealership today.

We’d love to help you find a great priced car loan. Simply fill in the form below and we’ll get back to you ASAP or see our selection of new and used cars at our Burlington dealership. 

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