What reasons will cause car loans to be rejected
1. Substandard qualifications: When you apply for a loan, banks will focus on checking the borrower’s qualifications, such as age and employment. In terms of income and other aspects, once the loan requirements are not met, the loan will be rejected. The approval of car loans will be more stringent and the requirements for users will be higher. If the bank finds that the user is overdue or has other untrustworthy behaviors during the review period, it is very likely to refuse the loan approval.
2. Over-optimization of information: Banks generally require borrowers to submit some personal information as an important reference factor for agreeing to loan approval and to fully understand whether the borrower has sufficient repayment ability. However, many friends will optimize their information in order to improve the success rate of car loans. However, they do not know that the bank will verify it again when lending. If it is found that the information submitted by the user is not consistent with the facts, then it will be used to avoid loan risks. Reject loan approval. Therefore, the information can be optimized based on reality. Do not over-optimize. Otherwise, not only will you not be able to apply for a loan successfully, but you may also be blacklisted by the bank and become a rejected user.
3. Insufficient repayment ability: If the borrower’s repayment ability is strong, then the bank will naturally be more likely to approve the loan; conversely, if the user’s repayment ability is weak, taking into account the lending risk , the bank will not approve the loan. It can be seen that repayment ability is an important condition for banks to decide whether to approve a loan. If you want to successfully apply for a loan, it is recommended to reduce your debt ratio and ensure that your monthly income is at least twice the monthly repayment amount, reaching Less than this standard means insufficient repayment ability. What are the common reasons why car loan applications are rejected?
What are the common reasons why car loan applications are rejected? As far as the current automobile market is concerned, there are three main mortgage methods: bank loans, credit card installments, and automobile finance company loans. No matter which method consumers choose, there will be certain conditions for the loan as long as it is designed. Although more and more people are applying for loans to buy cars, there are also many people who have their loan applications rejected due to various reasons. Here are the common reasons:
1. No real estate, no local household registration Obstacles in the approval process: Most car loan businesses require buyers to have a local household registration or real estate certificate. Otherwise, the loan may be rejected, no matter how good the bank statement is.
2. It is difficult for consumers with a down payment of less than 40% to get approved: the loan ratio chosen by most car buyers now is 40% to 60% of the car price. According to reports, it is very difficult to buy a car with a down payment of 30%. It is difficult to get approval, and even if it is approved, it will affect the speed of approval.
3. Improper installment loans will affect the approval process: If consumers want to get a successful loan, they also need to examine the interest rates corresponding to different loan periods, and then find a balance point based on their repayment ability.
4. The loan amount and repayment method are directly linked to the monthly payment burden: the loan amount depends on the situation. When applying for a mortgage of the purchased vehicle or real estate, the loan amount is 70%; third-party guaranteed loans If you apply, the loanable amount is 60%. When choosing a repayment method, there are generally two repayment methods: equal principal and interest and equal principal.
The above is a relevant introduction to "What are the common reasons why car loan applications are rejected", I hope it can help everyone pass the review better. Financial institutions require car buyers to pay a certain percentage of down payment and provide proof of repayment ability. They must have no bad credit record and meet the financial institution's requirements for applying for a loan to buy a car.
If the loan does not comply with the requirements, you can try another lending institution. Under normal circumstances, bank requirements are slightly stricter, and loan intermediaries have it easier. If the borrower's income requirements do not meet the standard, in this case, looking for a guarantee from a local guarantee company or directly applying for a loan through a loan intermediary can increase the chance of obtaining a loan. possibility. What are the reasons for car loan rejection? Analysis of the main reasons!
;?Many people now choose car loans when buying cars. However, as policies gradually tighten, the success rate of bank or car finance loans is getting lower and lower. So why are car loans rejected? ? There are mainly the following reasons.
1. Analysis of reasons for car loan rejection 1. The applicant’s credit report is poor. If you want to apply for a bank car loan, you must ensure that the two-year credit record has no serious stains. If the applicant currently has If you have an overdue record, your application for a car loan will definitely be rejected.
2. Insufficient repayment ability. Although the threshold for car loans is relatively low, you also need to have a stable job income. The biggest fear of both banks and lending institutions is that they cannot get back the loans they have given out, so they will pay extra attention to the lenders. If your application materials show that your repayment ability is not strong, the chances of being rejected are higher. 3. Banks and lending institutions will also examine the borrower's debt situation when approving car loan applications. If your debt exceeds 50% of your monthly income, it will be more difficult to apply for a loan.
2. Basic application conditions for car loans 1. The buyer must be over 18 years old and a Chinese citizen with full capacity for civil conduct. 2. Applicants must have a stable job and relatively stable economic income, and have a strong ability to repay the loan principal and interest on schedule. 3. During the loan application period, the car buyer needs to deposit the down payment for the car purchase specified by the bank into the savings card account of the handling bank. 4. If the car buyer's personal account is not local, a joint liability guarantee must be provided, and other conditions deemed necessary by the bank must be met. When applying for a car loan, you may be rejected if you have poor credit, insufficient repayment ability, or excessive debt. Therefore, you should pay attention to your personal credit report, pay attention to the repayment date and minimum repayment amount of your credit card, and do not let your credit report be blacklisted.
Analysis of Reasons for Car Loan Rejection
1. The applicant has poor credit. If you want to apply for a bank car loan, you must ensure that there are no serious stains on the credit record in the past two years. , if the applicant currently has an overdue record, then the application for a car loan will definitely be rejected.
2. The repayment ability is weak. When applying for a car loan, the bank will not only review the borrower’s credit situation, but also understand whether it has the ability to repay in full and on time. If the borrower cannot meet the With this request, the loan will be denied.
3. When banks and lending institutions review and approve car loan applications, they will also examine the borrower's debt situation. If the debt exceeds 50% of the monthly income, it will be more difficult to apply for a loan.
4. Incomplete procedures. When applying for a car loan, borrowers must submit complete loan procedures. In order to avoid mistakes, it is recommended that borrowers clarify the situation before taking out a loan and prepare the loan procedures as early as possible. , to avoid cramming.
(Photo/Text/Photo: Liang Kexin) @2019