Being refused car finance can feel like the end of the world, but it doesn’t mean you’ll never be able to get a car on credit forever.
Establishing why you have been refused car finance, and looking to fix any outstanding issues, can be great first steps to getting accepted.
There can be several reasons as to why you may have been turned down for credit.
Here are a few possible culprits to consider:
Being able to identify what's holding you back in getting accepted for finance is key to future applications.
What you do next will rely on any of your findings as to why you were refused credit in the first place.
If you feel it was your credit score that was the main factor in being refused car finance, then you'll need to look at ways in which you can boost it.
Our guide to bad credit can be a great place to pick up ideas as to how to improve your credit score, with such aspects as:
You may have found that you were applying for more credit than you are able to afford to borrow - in such an event, try putting together a bigger deposit that can reduce the amount you're trying to finance.
For something more immediate, you could look at a cheaper vehicle to finance so that the amount you wish to borrow is less than that you were refused for.
If you feel that you need to take more care when applying altogether, then remember to take your time to ensure all information being declared is accurate.
Also remember that typical application for finance will require you to have at least three years' of both employment and address history.
When you think you’re in a better position to apply for finance, and some time has passed since your last application, then it could be time to try again.
One way to approach this next application for finance could be to check your eligibility first, rather than looking to do a full application from the off.
Online facilities such as our own perform what is know as a 'soft search', and won't affect your credit score, even if you get a negative outcome.