These valid reasons might be the reasons your impending loan is not yet approved.
Having your car loan approved is a dream come true for most people, but having it rejected can be a real-life horror. Most people undergo a long process of applying for a loan. However, there are circumstances that the loan application is ‘rejected’ – and that would be depressing.
However, remember that there are a handful of valid reasons as to why your application get turned down. Here are some of them.
- POOR CREDIT SCORE IS A BIG NO-NO
It is a must to keep your credit score in a good reputation. Your credit reflects you as a creditor. Owing a lot of money could prohibit you from passing that loan. So clearing things off before taking a loan would be a good idea.
- FAIRLY LOW INCOME
In loan application, your income does matters. Lenders will take into account your ability to pay the debt. It is natural for your loan to get rejected if you do not earn enough money for it. Depending on the company, there is a required minimum income that one should have. If you can keep your income stable, there are companies who would trust you with their money, like providing your car title loans in Moreno Valley.
- INCONSISTENT INFORMATION
Inconsistency with your personal information could lead to doubts to loan company. For faster processing of your loan, your papers should be clear and correct. You have to remember that lenders conduct a background check of you.
- INCOMPLETE DOCUMENTS
Do you want your car loan application processed right away? Then you need to make sure that you’ve compiled all necessary documents properly. Aside from keeping it true and correct, you need to comply with all the needed requirements.
- UNANSWERED CALLS
How could companies approve of it if they can’t contact the borrower? You have to keep your line open in case the company calls you for verification. That is the reason why you have to provide real and reliable facts about you, especially regarding on your contact information.
- FINANCIAL HISTORY IS BAD
Unpaid debt like electric and water bill could affect your next loan. Some people may think that unpaid matters will get ignored by loan companies. However, part of their background check is to see if you are responsible in paying things off. If you have a negative financial history, then settle your financial problem before a car loan.
- EMPLOYMENT STATUS IS UNSTABLE
SInce income matters in loan application, a stable job is necessary to prove to the loan company that you have a consistent flow of cash. Also, some loan companies require other applicants to be in the same company for at least a year or two. Working in the same company for a long time increase your chance of getting that loan approved.
Car loan application would take up more of your time and record. The most important thing is to maintain your financial record clean. Review your status account as possible as you can to avoid problems in the future.