Car Financing London: How to Get A Loan Approval After Rejection?
It is often challenging to easily get a car financing London. You may get confused or upset after your car loan rejection. But instead of getting disappointed and angry, you need to find out your way forward. You need to identify the issue and rectify it to get your loan application accepted.
Get a Consigner
A consigner is a person who is willing to sign a car loan with you. He can be a partial owner of the car or make the car payments, but he essentially shares the car loan's financial responsibility with you. While reviewing your application, the lender will also consider his income, credit score, credit report, DTI (debt-to-income) ratio, etc. If the consigner comes up to the expectations and fulfills all the requirements, your loan will be approved immediately. Having a consigner is an added guarantee to your application.
Decrease The Loan Amount
If the lender is unwilling to give the loan you are asking for, you can easily fix this by lowering the loan amount. It is more likely to get smaller loans than the big ones. You can use your savings to meet the difference and get your favourite vehicle for yourself. You can also go for a less expensive vehicle and bring the loan amount to an acceptable level.
Loan Term Extension
The lenders and banks also use the payment time to set the interest rate besides credit score and report. The bank analyzes your DTI and determines the ideal time span for your loan. If you go for a loan policy for a longer time, your monthly instalments will fall. This means that a loan with an extended period of time will be more affordable to you than a short one. Hence, try to extend your loan term to get approval after the rejection.
Consider Newer Vehicle
The bank also analyzes the loan policy according to the age of the vehicle you intend to buy. Normally banks do not invest in more depreciating assets, and an old car may be more depreciating than a new one. If your loan application has been rejected previously, consider a new vehicle this time. The bank will consider this one.
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