Services
Insurance
Loans
Repairs
Advice
About

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?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
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.
View full answer 
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

Join 4M+ members in lowering their car insurance

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings