My Cambridge auto loan application was rejected, now what?
My Cambridge auto loan application was rejected, now what?
Posted on February 16, 2021
Nobody likes rejection but it’s fact of life. Sometime, somewhere, we will all face rejection of one kind or another. The measure of a person is what they do next.
If your Cambridge auto loan is rejected, the best thing you can do is shrug it off, find out what happened and do something about it.
We can help.
Common reasons for Cambridge auto loan rejection
The lender you applied to should provide a reason for the rejection of the application. If they do, you should have all you need to remedy the situation. If they won’t provide a reason, the following are common reasons for auto loan rejection:
Low credit score – If your credit score isn’t high enough for the amount you wanted to borrow or you’re have bad credit, borrowing less or improving the score will help. As will saving for a larger down payment.
Sporadic income – If you’re a gig worker, freelancer, contractor or have irregular income, this can impact your auto loan application. Being able to prove beyond doubt that you can afford the loan can help here. As can working with specialist lenders who appreciate we don’t all work 9-5 anymore.
Incorrect information – If you made a simple spelling mistake, missed something off the application or didn’t get your facts right, this can impact your application. While a simple mistake, an auto loan application is a formal document so has to be 100% accurate.
Borrowing too much – Sometimes, being too ambitious can be a bad thing. Trying to borrow too much for your circumstances can be as risky as trying to borrow too much for your credit score. Loans are about affordability so this can have an impact.
What to do to prevent auto loan rejection
If your lender told you why your application was rejected, your first move is to tackle that reason. If it’s something specific like those reasons above, you now know what to do.
You could also consider borrowing less or using a larger down payment. You could buy a cheaper car, consider a used car or enlist a cosigner. You could also work with an expert team of Cambridge auto loan experts who know the market and have a wide pool of lenders willing to work with you.
Insufficient or low credit scores are not insurmountable. You can borrow less, put down more money or increase your score before reapplying. Much depends on your situation and how much you need the new car.
If time is on your side, improving your credit score, paying off any existing debt and saving a down payment will all help increase the odds of loan acceptance.
In most other situations, working with us should be enough to get you that loan!
When you’re ready for a car loan, get in touch with the Cambridge car loan experts at Northway Ford for great deals on auto finance.
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