Declined for finance

Posted by & filed under Car Finance.

You’ve been declined for finance… now what?

If your car loan application has not been approved, then you probably have some unanswered questions. As lenders try to keep their lending criteria for themselves, they will avoid offering you specific reasons for their decision.

As a customer, it is crucial to know what went wrong and what you can do to improve future applications. The most important thing you need to keep in mind is that lenders will analyze your financial habits. Ultimately they need to feel comfortable that you will pay all of your repayment and on time.


The first thing that lenders will consider is your income. This will play a significant role in their decision to offer a formal approval.

As a considerable amount of your income will go into the repayments, added to various bills and daily expenses, lenders will reject your application if this sum doesn’t provide a monthly surplus. Lenders also look at other debts, credit card bills and loans that you have. If banks consider that you will not be able to make the repayments based on your salary, your application will be rejected.

Credit History

Have you taken out a loan or rented property? Then you have a credit history, and lenders will also check this. Your “credit history” includes current and previous loans for the past five years, past and present employers’ and any defaults or overdue accounts.

Try not to have too many loan applications, as this also negatively impacts your ability to borrow.


Regular and reliable work is a big point on your application form. If you regularly change jobs or if you are still in a probation period, this can make securing finance more difficult. Lenders will also take into consideration whether you are Full Time, Part Time or Casual which could play a major role in obtaining an approval.

Residential Situation

Your residential position is also important. If you move around on a regular basis, it does affect your ability to borrow. Generally speaking, if you are renting through a real estate agent or are paying off your own mortgage, this puts you in a great position to get approved as it shows serious stability and that’s what lenders love.

Do you need some assistance in turning your decline to an approval? Contact today. We specialize in looking at very application independently and with a wide range of Financiers, we have had a great deal of success turning a declined application into an Approval.

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