"Why was I denied an auto loan for a new Honda by a bank? "

"My credit score is 700 and I have never missed a payment on anything. On top of that, I have a decent job of nearly three years now and have been living at the same address for just as long. What am I missing here?

"

Answer
“While your positive financial details cover the basics, every lender has their own policies and the only way to know why that particular bank denied you a loan is to contact them and ask.
Some possible explanations may be that your income is not high enough to afford the car payment or you have too much debt. Banks generally like to see a debt-to-income ratio, including the car and car insurance, of less than 45%. They will also deny a loan that would make up more than 20% of the buyer’s income. “
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Johnny Puckett
Answered on Apr 26, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
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