Why did I get denied for a car loan if I have a 690 credit score?

"I recently got denied a car loan with a 690 credit score. I've never missed a payment and make about $50,000 a year. Though, I do have 40% debt utilization on my credit cards.

Why did I get denied for a car loan?"

“Your credit score should be good enough to warrant a car loan. However, that’s not the only thing that lenders consider.
A debt utilization of 40% can definitely work against you, and, if you have a debt-to-income ratio of around 43% or higher, many lenders will automatically deny your loan.
The price of the car might also be too high for the lender to give you a loan, especially if this puts your debt-to-income ratio above the 43% threshold.”
Eric Schad
Answered on Jun 17, 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.

Did this answer help you?

Ask us a question by email and we will respond within a few days.

Have a different question?

You can meet us at our office and discuss the details of your question.

Easiest way to compare and buy car insurance

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