"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 provided by
Answered on Apr 26, 2021
“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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