What will happen if my car loan gets denied?

I applied for numerous car loans and got denied for all of them. What happens now?

Answer
Lenders deny car loans all the time—it’s an upsetting event, but it’s nothing to worry about in the long run. Even people with good credit scores and a strong income can get denied loans from time to time.
If you’re willing to continue the conversation, ask the lender why you were denied. Lenders are required to give you the reason for denial through a denial letter or adverse action letter. Then, try to boost your credit score or remedy whatever situation caused you to be denied.
When you’re ready to apply again (with the same or a different vendor), try to get pre-qualified or pre-approved. Pre-qualification or pre-approval takes less time than a traditional approval process. If you succeed, you’ll be able to see your potential rates before signing on and budget ahead of time.
If you succeed in getting a loan, the lender will probably require you to purchase a full-coverage insurance policy. Use the Jerry app to compare rates from dozens of companies to find the coverage you need at an affordable price.
Eric Schad
Answered on Oct 21, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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