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Yes, there is a chance that you can get turned down if you have a good credit score. The reason why you are getting turned down for a car loan us you may have a high score but there are a lot of reasons you can get turned down for a car loan. Some of those reasons can be not enough history, which means you have not been on the credit bureau for enough time for the bank to consider you for that car loan.
Another reason is you may have two or three credit cards which does not qualify for you to get a $50,000 car loan. You may not have enough trade lines, which is pieces of credit and bank may turn down the loan because you have light or insufficient credit.
Your Credit Score will help you determine what rate you might be approved for, although the bank or lender looks more in depth your credit bureau to determine if you should be approved for a loan.
The easiest way to understand is if you can be approved for this car loan and afford it. Also how did you pay your creditors in the past and currently. Late payments can hurt you as well. If you are late on a $10.00 minimum payment, how can you afford a $500.00 payment. Now you might have the money to pay it but just forgot, that’s why it is important you always pay on time to help you get approved in the future for higher credit limits and loans.
In most cases with light credit and a high score the bank will ask for a co-signer to help you to get approved for the car loan. The bank will also see how much you make annually, your residence and current employment. This way they can measure if you are a stable and also if you can afford the car loan including your overall debt. The co-signer will help you get approved but is also responsible if you are not able to make payments on the car, so if you cannot pay they would be responsible as well.
If you have no-cosigners to help you, then what can help you get approved is probably 70 to 80 percent of the loan you are trying to finance. Please remember your income will also play a role as well, the more you make the better at getting approved. So if the loan amount is $10,000.00 for example at 70 percent you would $7,000.00. Now if you do not have the amount, then you can wait to you save up to that amount, this way you don’t put a lot of inquiries on your credit, which can drop your credit score.
These are suggestions to help you get approved for a car loan, if you have light credit. Also do not apply to a lot of banks because that will drop your credit score, so for example you may have started with a 700 credit score you can end up with a 500 credit score.
You can try a new car dealership that does high volume sales. The reason is that since the dealership sells so many cars can help them get the tough loans approved according to the lender stipulations. An example is a Toyota or Honda dealership. They are very reliable cars and their bank is also able to get tough loans approved. So instead of getting a astronomical payment and interest rate those banks will probably out you into something affordable and a brand new car.
Another way is you can try credit unions. If you work for a company that has a credit union or the government, you can qualify for a loan with them and they can cut you a check to the car you want to buy from the dealership. You just need a bill of sale from the dealership and it will be handled as a cash deal. Some examples of government credit unions are Navy Federal Credit Union and USAA.
Also here at Air Flash MLS we have banks and lenders that you can do research to help find the right loan for you. Try to do your research first on each lender and ask their requirements, this way you can see if you qualify first before submitting a inquiry. There are many different types of lenders. Air Flash MLS has categories for each type of credit section you might fall into, such as Good Credit, Bad Credit, Credit Unions and much more to help you find the best bank for you.