Why did I get denied for a second auto loan if my credit score is 814?
"I applied for a second auto loan and I was denied by the lender. I'm not sure why.
My credit score is 814, so I never thought in a million years I'd be denied. Why did this happen?"
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Answered on Jun 14, 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.
“A great credit score is only a part of the formula lenders use to approve a car loan application. So even though your 814 credit score is awesome, you might have some other issues.
You say you already have another car loan, so you might have a debt-to-income ratio that’s too high (higher than 43% is too much for approval). Alternatively, your loan-to-value rate might be too high. Either way, the lender feels like the risk is too great to grant you another loan.
You can shop around with other lenders to get a second loan, or you can just look for a car that’s a bit cheaper and fits your budget.”
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