When you need to purchase the car of your dreams, the first thing you do is approach a lender, so that you can get an auto loan. Most people in Canada go to their local banks, as these financial institutions are willing to provide credit.
After waiting for a couple of days, you find out that the bank rejected your car loan application. However, they didn’t give you any details on why they decided to do this. Here are three reasons why the bank rejected your car loan application:
A credit score doesn’t meet requirements
Every bank will want to know your credit score to understand whether you will be able to repay the car loan. According to these financial institutions, your credit history is a reflection of how much risk they have to take when giving you a car loan.
If your score is too low, they will reject your application immediately, as they believe it isn’t worth the effort. Similarly, if you don’t have a credit score, because you are taking a car loan for the first time, the bank may not be willing to take the risk.
Incorrect information
The information you provide to the bank is crucial, as the financial institution will use this data to cross-check your ability to repay the loan. If there are any discrepancies, they never want to put themselves in compromising situations. For example, the address you entered was wrong, due to which they were unable to validate the information.
The smallest mistakes when filling your forms can result in the bank rejecting your application. The best practice is to triple check all the information you enter, before filing it.
Requested a large amount
The amount you can borrow from the bank depends on your income, along with other factors. If you ask for a huge amount that is beyond your ability to pay, the financial institution will reject the loan application immediately.
If you don’t want to face these problems when taking a car loan, get in touch with TakeTheDrive. They will never take your credit score as your ability to pay and provide credit at great interest rates!