Borrowing money is no easy task as it involves many different elements. Doing research before applying for any form of finance is always recommended, however, no matter how much you prepare, something could always go wrong because of bad credit history. Getting turned down has got to be one of the most frustrating things ever, especially if you have already made an effort to fill out an application form, expecting for things to go smoothly.
A lot of different things are probably going through your mind when your application gets rejected. However, we don’t want our customers to worry.
Some of the common reasons why your application might get rejected include:
- Bad credit – One of the main reasons why people get rejected for finance is poor credit history. Although we do offer a variety of options for people with bad credit, it all depends on your personal circumstances and the amount you want to borrow. Fortunately, there are many things you can do to improve your credit history, some of which are listed here.
- Credit report – Your credit report provides a detailed credit history, including how many loans you have taken out and whether you have made regular payments. If your credit report worries the lender, it could be much harder for you to get approved for finance.
- Stability – Lenders are always looking for security as it helps them work out whether you are going to be consistent with your payments. If you move around a lot, for example, you are less likely to get approved. Living at the same address for a minimum of three years improves your chances significantly. Although stability is often considered when it comes to financing, it won’t always affect the lender’s decision.
- Lender profile – Many different lenders specialise in particular areas. It’s possible, therefore, that your application could get rejected if the lender doesn’t specialise in the area you are interested in. For example, certain mortgage lenders only specialise in first-time buyers, so it’s not personal if they reject someone trying to purchase a second home, they’re just not operating in that area.
At Trusted Car Credit good and bad credit history is considered so if you are looking to purchase a new car on finance, simply fill out our online application and find a best possible solution to get you your dream car.