A refused car finance application is always disheartening. Having followed all the procedures, trawled through multiple dealers and found the car you were searching for, you’ve fallen at the last hurdle. While this may seem like the end of the world, there are steps you can take to make sure that the next time you apply, you can go through the process armed with the tools you need to be successful
Have you checked your credit rating lately?
Having poor credit is a common reason for being refused car finance. It’s all too easy to forget exactly what can affect your credit rating, but missing payments on your phone contract or rent, or even forgetting about standing orders, can negatively affect your credit score.
Make sure that your credit rating doesn’t hamper your future plans by staying on top of your bills and payments. It sounds obvious, but we’ve all been so busy at some point that we’ve forgotten to pay the council tax on time. It could also be useful to check if you have any unused lines of credit, if so, it would be best to cancel these before applying again.
If you have recently moved house you may no longer be on the correct electoral register. This can damage your credit score, but you can easily update your details and amend the problem in no time.
Did you double- and triple-check your application?
Listen, we all make mistakes. Even with someone standing over your shoulder guiding you through the process, something as simple as the wrong digit in the wrong box can be the difference between securing car finance or being denied.
The next time you apply, comb through every detail you fill out and pay close attention to anything that could be out of place. Printing out a physical copy of your application will help you to spot any glaring errors.
At Quick Car Finance we strive to provide the best customer service, so if you would like the second opinion of a trained professional, we would be happy to ensure that your documents are in order.
How old are you?
It’s difficult being a new driver. Your insurance is through the roof, you feel uneasy around other drivers and the less said about your first time on the M6, the better. What’s more, you may still be in school without any savings to your name. Financing a car seems like the logical choice, doesn’t it?
Unfortunately, the majority of dealers don’t offer car finance for anyone below the age of 18, and sometimes you won’t find out until your application has been denied. We advise being upfront about your age immediately so as not to waste your time or get your hopes up. Wait until you’re older to make a second application, or ask if a parent or guardian can help you out in the meantime.
Try to keep a sensible limit
Another reason for refusal can simply be requesting too much. If the dealer looks at your credit history or job and decides that you will not be able to pay back the monthly instalments, they will likely reject your application.
There are a couple of things you can do to avoid this happening again. The simplest option is to choose a cheaper car with lower monthly instalments that will be easier to manage. An alternative is to create a detailed budget plan that can help you see what your monthly outgoings will look like. Use our car financing calculator for further guidance.
Is your licence valid?
If you do not have a valid UK driving licence, you could struggle to find a dealership offering financing in the UK.
There is a selection of licences that allow you to drive in the UK, but the majority of non-UK licences do not offer the same benefits as those of the UK. If you’re planning on staying in the UK for the foreseeable future, it is in your best interest to get a UK licence so you can get that financing!