Why have I Been Rejected for Car Finance?
If you don’t possess a lump sum and you’re looking to spread the cost of a used or new car purchase over several months, car finance can be the best way of going about it. Rather than paying everything upfront yourself, a finance company will allow you to separate costs into manageable payments over a agreed time. If you are new to this system and would like to find out exactly how much car finance might cost you, use our calculator here.
From Hire Purchase (HP) and Personal Contract Purchase agreements (PCP) to personal loans and conditional sale, there are many different finance products available. In truth, no finance company can guarantee that an application will be successful before they’ve examined your details, which all goes towards them making a final decision. However, here at Car Finance Genie we specialise in low deposit and bad credit score car finance and we love giving out successful applications!
So, you applied for car finance elsewhere and got refused? Now you want to know why? Well, it could be…
A simple reason for refusal can be if they’re unable to confirm your address. This can occur if you’re not on the electoral register or have recently changed your address. Double check your address and if you aren’t on the electoral register, register yourself before you apply to minimise your chance of being rejected due to address admin.
Finance companies like to see you’ve successfully taken out credit and repaid it. If you’ve never used finance or credit of any kind, you won’t have a bad history, but no history at all to provide a rating with which they can assess you. If this is the case, you may be refused finance. So yes, in some cases, having debt can be a good thing. If you show you repay agreements in the agreed time frame at the correct rate, this will boost your credit score and make you more a more attractive prospect to finance companies.
If you’ve got a less-than-perfect rating when it comes to credit, it’s still more than possible to acquire a car finance deal, but it’s worth remembering that you’re likely to get worse rates of interest than someone applying with an excellent credit score. At Car Finance Genie, however, we specialise in bad credit car finance which you can read further about here on our bad credit page. If you’ve failed to make payments in the past and have a default registered against you, this could also lead to you being refused finance.
Think you’ve sorted the problem?
Have you now put yourself in the best possible position to reapply with us- the specialists in bad credit and low deposit car finance?
That’s great! You can do so here.
We look forward to your application!