Why are some people declined for an auto loan?
There are several reasons why an application may be declined. The most common reason for a loan decline is bad credit. A history of poor debt payments can be more damaging than any other reason. High loan to value, a pattern of late payments, collections, charge-offs, child support/alimony issues and tax liens are other common reasons loans are declined. Your credit payment history is recorded in a report maintained by consumer reporting agencies or credit bureaus such as Equifax, TransUnion and Experian. Your credit record contains information provided by businesses and public records – information such as court documents, property taxes, residence, debts, and credit payment history. Credit history is important and affects all of us at some point in our lives. First of all, potential lenders look at it to figure out how likely you are to repay a new loan. When deciding whether or not to approve a loan, a lender will factor in your credit worthiness and your potential risk. They genera
