Why can’t I get a car loan?

I recently applied for a car loan and didn’t get it, but I’m not sure why. Why can’t I get a car loan?

I’m sorry to hear that! Generally speaking, there are a few reasons someone would get denied a car loan, such as:
  • Bad credit
  • Irregular or inconsistent income
  • Low debt-to-income ratio
  • A paperwork mistake
  • Short credit history
  • Too big of a loan
It’s important to remember that denial doesn’t mean you won’t ever own a car. You do have options.
You can try applying for a loan for a cheaper vehicle. Many lenders are willing to work with a large range of credit scores, but if you have a lower credit score and try to sign for a larger loan, the odds aren’t in your favor.
If you’re not in a rush for a new car, try improving your credit score and saving for a larger downpayment.
If you need a car ASAP, try finding a cosigner to help ease the burden.
Shop around and you’ll find a lender willing to work with you. Once you’re ready to sign on the dotted line, be sure to shop around for car insurance using the number-one-rated car insurance app, Jerry. Lenders will require you have full coverage for your financed vehicle. To help you find the lowest rates on car insurance, Jerry compares personalized quotes from more than 50 top providers. Jerry customers save an average of $879 a year!
Will Baldwin
Answered on Dec 09, 2021
Will Baldwin is a graduate of Ryerson’s School of Journalism with three years of experience writing and freelancing for multiple publications including The Globe and Mail. With a deep interest in geography, economics, and politics, he has come to be extremely interested in the relationship of personal finances and culture with the auto industry as one of the forefronts of his interest. When not writing, he’s an avid sports fan who splits his time between watching too much basketball and having his heartbroken by the New Orleans Saints. Will is based in Toronto, Ontario.

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