Why Does Car Finance Get Refused?

If you’re stuck without a vehicle and your loan applications keep getting knocked back, you’ve probably wondered ‘why does car finance get refused?’ There are a number of reasons you could be having difficulty finding finance, and we discuss some of these below.

 

You’ll be glad to know however, that the reasons car finance often gets refused doesn’t apply with Freedom Cars. Read on to find out some of the car finance problems we can solve for you.

 

Bad Credit History

Having a bad credit history often affects the likelihood of your loan application being successful, because banks and lenders see your history as an indication of how likely you are to pay your debts in full and on time.

 

Your credit score takes into account previous events like bankruptcy, loan defaults, being referred to a collection agency and even current outstanding debts.

 

If you want to check your credit score, you can access the Government credit reporting website to find out how.

 

Low Income or No Employment

Most financial lenders will consider you to be a high-risk applicant if you don’t have stable employment. Conditions that may cause you to appear unreliable to lenders include:

 

• Receiving Government benefits or pensions (Centrelink)
• Earning a low income (part time or casual work)
• Recently started a new job

 

In most cases, lenders will require evidence of your employment and income, and if they view your situation as unstable they may deem you incapable of making repayments. With Freedom Cars, you can avoid all of this hassle.

 

Bankrupt

Needless to say, bankruptcy is not going to look good on any credit reporting. Bankruptcy, while a necessary option for many Australians, does indicate to lenders that you have had an inability to pay debts in the past, making you a riskier proposition for them to lend to.

 

The reality around bankruptcy is that you have actually freed up a lot of your income and your ability to make repayments is probably much better than someone who has several overdue credit cards or other loans. That’s the way we prefer to view things here at Freedom Cars.

 

Need Help with Car Finance?

If you’re struggling to find suitable car finance thanks to any of the reasons above, don’t panic. Where traditional lenders and car finance companies say “No”, we say “YES!”. Freedom Cars provides a rental system with no fees, no interest, and payments you can manage. Contact us today and let us help you get into a car without the hassle of traditional car finance applications.