Why is the dealer turning me down for an auto loan even when I have a 700 credit score and a cosigner?

Why do we keep getting rejected for a car loan when we have good credit? I'm trying to buy a new car with 0% APR financing for 60 months. I have a credit score of 707, but I was denied. I added my mom to the loan as she has a credit score of 730 and we were denied once again. I'm not making a down payment either, if that matters.

Answer provided by
Eric Schad
Answered on Jul 15, 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.
“When you apply for dealer financing, they sell your information or give it to lenders. The lenders then go over your:
  • credit score
  • debt
  • debt-to-income
Just because your credit score is good (and your cosigner’s score) doesn’t mean you’ll automatically be approved for a loan. Both you and your mother may have tons of debt or not enough income.
No down payment is just the icing on the cake.
If possible, try to scrounge together a down payment. That might help you gain approval.”

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