Question: I applied for pre-approval for a car loan with Carvana and I was pre-qualified, so I started shopping for a car. But then when I tried to apply for the actual loan, Carvana denied me. What should I do? Why did Carvana pre-qualify me, then deny me?
Answer: If Carvana pre-qualified you but then denied your application, the first thing you should do is check with them directly to see why. Carefully read any communications that Carvana sent you to check if there’s more information about why you were denied. If you don’t see any details regarding the decision, you may need to contact Carvana’s customer support team for more information.
Pre-approval is not a guarantee that you’ll get a car loan. When you fill out the pre-qualification form, Carvana will ask for your employment and income information. They’ll also perform a soft credit pull—a general inquiry that gives them an overview of your credit history without impacting your credit score.
With that information, Carvana will calculate how much you can borrow, the loan terms you qualify for, and your interest rate. But Carvana doesn’t process your full application until you choose a car to purchase, so your loan could be denied even if you were pre-qualified.
Reasons for denial
Here are some reasons your loan application might have been denied after you were pre-qualified:
- There was an error in your application: Carefully review the information you provided in your loan application. If you mistyped something, like your name or the VIN of your trade-in, the error may have caused your loan to be denied.
- Your credit or financial situation was different than expected: When you choose a car to purchase, Carvana will verify the information you provided in your pre-qualification. They’ll request proof of your income and will also run a full credit report. If there’s any discrepancy between the information in your pre-qualification and your application, Carvana might deny your loan.
- You’ve had a bankruptcy: Carvana has relatively lenient approval terms—applicants with bad credit can often get approved, and you only need to make a minimum of $5,100 a year. But if you have an active bankruptcy on your record, you may be disqualified from a Carvana loan.
- There was an issue with your documents: If the documents you submitted during the loan application were unreadable or not filled out entirely, Carvana may not have accepted them. Check the Order Summary Dashboard page under your Carvana account for more information.
- Carvana’s underwriters need more information: If your application was missing any required supporting documents or other information, a Carvana team member may have reached out to you. If you missed their call or message, or if you missed the deadline for submitting your missing info, it could be the reason your loan was denied.
If the problem is a missing document or an error in your application, you may be able to correct the issue and move forward with your loan. If not, you might need to try applying with other online auto financing companies like Capital One Auto Navigator or Car Gurus.
Expert insurance writer and editor Amy Bobinger specializes in car repair, car maintenance, and car insurance. Amy is passionate about creating content that helps consumers navigate challenges related to car ownership and achieve financial success in areas relating to cars. Amy has over 10 years of writing and editing experience. After several years as a freelance writer, Amy spent four years as an editing fellow at WikiHow, where she co-authored over 600 articles on topics including car maintenance and home ownership. Since joining Jerry’s editorial team in 2022, Amy has edited over 2,500 articles on car insurance, state driving laws, and car repair and maintenance.
Everett Cook is an award-winning journalist and editor with more than 10 years of experience across a variety of industries. In editing for Jerry, Everett’s mission is to help readers have a better understanding of the costs of owning or leasing a car and to better understand their vehicle in terms of insurance and repairs. Prior to joining Jerry, Everett was an editor for Axios. His previous work has been featured in The New York Times, The Los Angeles Times, The San Francisco Chronicle, The Atlantic, Atlantic Re:think, The Boston Globe, USA Today, and others. He’s also been a freelance writer and editor with experience in SEO, audience building, and long-term content roadmaps. Everett is a proud graduate of the University of Michigan.
