Refusal of a car loan: Possible reasons
A person who plans to borrow money from a bank should always understand that there is a possibility of receiving a refusal. Refusal of a car loan can also be received by a person who wanted to get personal transport through a credit deal, and today such refusals are not uncommon.
Refusal of a car loan: Problems with solvency
Car loans are one of the major financial transactions in which the bank’s clients are subjected to thorough checks. Special attention is paid to the income of a potential borrower who wants to borrow transport. If a person has insufficient wages, most of which will have to be given to pay off the loan, the person’s work is seasonal or he is interrupted by temporary earnings, then the chances of getting a positive decision on the application are minimized.
When communicating with a banking specialist, you can not withhold any information. The bank does not trust its clients at their word, and after communicating with a potential borrower, it conducts its own verification. If, as a result of such verification, it turns out that not everything was said or even worse, some deception is revealed, the car loan will be refused. Financial organizations only want to work with honest clients.
It is possible that the financial institution considered open loans too heavy a burden. If you add another car loan to them, the borrower may have some difficulties paying off debts. Such difficulties may not appear, but financial organizations for the most part do not want to engage in such checks and prefer to enter into less risky credit transactions.
When communicating with a potential car borrower, a specialist in a financial organization tries to find out the contacts of as many relatives or close acquaintances as possible. When checking all the information, employees of the credit institution use these contacts to find out how the potential borrower is treated by his close and familiar people. There are situations when someone from such acquaintances or relatives puts a person in a not very good light. The opinion of relatives is very important for the bank and can be a serious reason for the refusal of a car loan.
The financial organization may not be satisfied with the transport that was chosen by the person who wants to issue a car loan. In order not to encounter such a reason for refusal, you should first get acquainted with the requirements of the selected lender, which the financial organization can put forward for mileage, year of release, manufacturer, and other parameters. If the financial organization really does not like the chosen option, it may not refuse the loan but will offer potential customers to simply find another car that they like.
Reasons beyond the borrower’s control
It happens that the borrower can’t do anything about the refusal of a car loan since it is not related to it in any way. There are a number of car dealers who agree to work only with financial organizations with which they have already concluded cooperation agreements. If the bank chosen by the borrower is not one of the partners, then you will not be able to get a loan for a car. To solve this issue, you will have to look for a salon that agrees to cooperate with the selected bank or change the bank to a financial organization from among the dealer’s partners.