Are you concerned about your chances of being approved for a car loan, or have you already been denied a loan in the past? Help is close at hand. The experts at Schmit Bros Auto outline a few reasons buyers don’t get approved and how to respond to improve your future approval odds.
Bad Credit
While a bad credit score isn’t always a dealbreaker, it can be. If your credit is to blame, we recommend checking your credit report to see the issues dragging your score down. There are solutions available, such as disputing discrepancies or paying down your debt. If not, consider adding a cosigner since their excellent credit can help.
Not Enough Income
Your income and debt-to-income ratio both play into your approval chances, too. If lenders believe that your loan or lease may be beyond your means, it might be time to reconsider the vehicle you are interested in. If you don’t want a cheaper car, consider making a larger down payment to reduce your financing amount (or use that money to pay down your other debts).
Inconsistent Employment History
Lenders typically look for buyers with a solid employment history of at least two years. They don’t want to risk lending money to someone who changes jobs frequently or has gaps in their employment because they could end up without an income to repay their loan. This is another instance where you may need to add a cosigner.
Apply for Auto Financing at Our Saukville, WI, Dealership
If you’ve had trouble securing auto financing, don’t get discouraged. We’re happy to help you get back on track to the car of your dreams. Stop in to meet with our financial experts today!