Why didn’t I get approved for a car loan?

I didn’t get approved for a car loan, what do I do? I really need a car and can’t afford to pay for one out of pocket.

Answer
I’m sorry to hear that! Luckily, you’re not completely out of luck. Try these few tips to help you secure a car loan:
  • Try a different lender. Every lender has different requirements. Even if one lender denied your loan application, you could still be approved elsewhere. Try online lenders, banks, and credit unions.
  • Get a cosigner. A cosigner with good credit can greatly improve your approval chances as they are responsible for the loan if you default.
  • Work to improve your credit. Check your credit reports and make sure they’re accurate. Continue to pay your bills and outstanding debts on time.
  • Choose a cheaper car. You’re more likely to get approval for a loan on a less expensive car.
  • Make a large downpayment. You become a less risky borrower if you put more money down when purchasing your car.
Hopefully, you can find a loan that best meets your needs and gets you a new car! Just remember, before you drive off in your new car, you’ll need car insurance coverage on it. An easy way to find the best car insurance policy is with the Jerry app.
Jerry is your ultra-talented car insurance broker for life. It takes less than a minute to sign up and you’ll be presented with competitive rates from 50+ top providers. The average Jerry user saves $879 a year!
Will Baldwin
Answered on Dec 10, 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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