Here Are 5 Steps You Can Take…
Being denied finance for anything, never mind your dream car is disheartening and frustrating, but even if you have been declined vehicle finance, don’t lose hope. Rather view the initial rejection as the first round in a game – one that you can win – and not as the end of the road. So, although you may have lost the initial round, here are five steps you can take towards winning the game:
1. Find Out Why
Pinpointing the exact reason why your application for vehicle finance was rejected is the first step towards acquiring your new car. Approaching the credit provider is a good place to start because they are obliged to disclose their reasons for rejection. Once you have uncovered the reasons behind the rejection, you can fix the problems and reapply.
2. Improve Your Credit Score
There is a good chance that your application for vehicle finance was denied due to a low credit score. Analyse your credit report to see if there are any outstanding accounts dragging it down. Try to decrease your level of debt, increase savings and, if possible, increase your monthly income. All of the above will improve your credit score. The higher your credit score, the better your finance deals.
3. Find Someone to Stand Surety for You
If you are deemed too risky for a loan it is possible to have a friend or family member stand surety for you. This essentially reassures the credit provider that if you can’t pay off the debt, then the person standing surety will take over the loan payments for you.
4. Reduce the Amount of Finance you’re Applying For
If it is proving difficult to fix the problems that resulted in your initial vehicle finance application being declined, you can just bite the bullet and ask for a smaller loan when you next reapply. The smaller the loan is, the less risky it is in the credit provider’s eyes, meaning that it has a much better chance of being approved. Although you will be forced to pay a larger initial deposit, a car that isn’t exactly your dream car is better than no car at all!
5. Employ an Expert
If you don’t come right on your own, it is possible to employ a professional to completely restructure all of your credit in order to improve your credit rating. This should be a last resort scenario as simple debt reduction and a planned budget is usually enough to get the job done.
Being declined vehicle finance is not the end of the road and there are plenty other ways that will lead to your dream wheels and cruising the open highway!
Contact www.carfin.co.za for all your vehicle finance needs!