Car finance for people that have been previously declined
Have you been declined for car finance previously?
You may believe that if you have been refused car finance in the past, making another application would be just as futile, but don't be deterred! At Instant Car Finance, we have a history of helping people who have been turned down for a car loan in the past to secure a deal.
Why Was I Refused Car Finance?
There are a number of reasons why you may have been previously declined for car finance, including the following:
Bad CreditThe most common reason for being refused car finance is bad credit. When finance lenders review an application and decide whether or not to approve it, they will look at the candidate's credit file for reassurance that they will make the loan repayments on time. Any missed or late credit card or loan payments, CCJs or bankruptcy will contribute to bad credit and imply that the applicant is an unreliable borrower.
If you have no history of borrowing, this could also have a negative effect on your credit score. This is because there is no evidence to show that you are or aren't reliable when it comes to paying back borrowed credit, so lenders cannot be confident of your trustworthiness.
Too Many Searches
When you are applying for car finance, it is important that you do so selectively. Each time a lender views your credit file, a 'footprint' will be left and if finance providers see that you have made lots of applications in the past, they may assume that you are not very good at managing your money.
If you are self-employed, working part-time or on a temporary basis, many lenders will see this as a risk, because your source of income may be less reliable than that of a fully-employed applicant, so you may have more difficulty gaining approval for car finance.
If you want to apply for car finance but currently only hold a provisional licence, a lot of lenders will turn you down, particularly if you do not have an excellent credit score.
If you have been declined for car finance due to a bad credit history or no previous credit history, your employment status, your age or the type of driving licence that you have, don't be dissuaded. At Instant Car Finance, our dedicated advisors are experienced at getting people who have previously been refused car finance behind the wheel of their dream car.