Denied Auto Loan Application. What to do?

**probpt** · November 20th, 2009 11:19 PM

Hi Guys. Just need your opinion on something.

I'm planning to purchase a car in the next couple of months. I've already decided on the make, the color, etc. Here's the thing. I submitted my auto loan application to a bank a couple of days ago. After waiting patiently for an update, the bank rep sent me an SMS informing me that my application was denied because of my credit card problems a couple of years back.

The question is: is there a way I can still get a loan given my present situation? I've worked for a good company and have recently transferred to another company that is giving me better compensation. There is no doubt that I will be able to honor my monthly commitments moving forward.

Thanks!

**Horsepower** · November 20th, 2009 11:34 PM

1. You can save up your money for the mean time.

2. With your down payment money, you can probably finance a project that will generate you more income. With your profits, you can buy the car in cash saving you a lot of money in the process (from exorbitant interest charges).

3. Settle your CC problem and get a cert of good housekeeping / that you are free from any debt. Talk to the bank you plan to loan a car from and tell them straight up that you had such problem to eliminate the hassle of waiting.

**mazzipino** · November 21st, 2009 12:05 AM

That's good of the bank rep to give you a reason for decline. Usually, and it's often stated in the T&C, they are obliged not to disclose the reason for denial.

If I were you, you should apply to many banks at once. Some banks are stricter than others. Some banks approve you in 3 hours, some in 3 weeks.

**kihtmaine** · December 7th, 2009 12:56 AM

Originally Posted by Horsepower

3. Settle your CC problem and get a cert of good housekeeping / that you are free from any debt. Talk to the bank you plan to loan a car from and tell them straight up that you had such problem to eliminate the hassle of waiting.

Pwede to, Is this your 1st time? Or pa accomodate ka na lang.

**Robenson** · December 31st, 2009 09:56 PM

Originally Posted by probpt

Hi Guys. Just need your opinion on something.

I'm planning to purchase a car in the next couple of months. I've already decided on the make, the color, etc. Here's the thing. I submitted my auto loan application to a bank a couple of days ago. After waiting patiently for an update, the bank rep sent me an SMS informing me that my application was denied because of my credit card problems a couple of years back.

The question is: is there a way I can still get a loan given my present situation? I've worked for a good company and have recently transferred to another company that is giving me better compensation. There is no doubt that I will be able to honor my monthly commitments moving forward.

Thanks!

Have you paid for your past credit card obligations?

If you did, then get a certification that you are fully settled then give it to the agent for them to reconsider their decision to deny your application.

Or just look for other financing. Competition now is stiff and others will approve you but on a higher interest rate.

**vinj** · December 31st, 2009 11:51 PM

Originally Posted by Robenson

Have you paid for your past credit card obligations?

If you did, then get a certification that you are fully settled then give it to the agent for them to reconsider their decision to deny your application.

Or just look for other financing. Competition now is stiff and others will approve you but on a higher interest rate.

x2 on this. The bank should have not just flatly denied your application and requested your reply to the credit card finding; if it has been settled or is being settled and your current work compensation and work status is generally stable then they should be able to mitigate that finding in your favor.

**tidus1203** · January 1st, 2010 12:06 AM

Well its still their call, if that's their reason so be it! Find another one willing to lend you.

But as always CASH IS KING!

**olm093** · January 7th, 2010 03:59 AM

Originally Posted by vinj

x2 on this. The bank should have not just flatly denied your application and requested your reply to the credit card finding; if it has been settled or is being settled and your current work compensation and work status is generally stable then they should be able to mitigate that finding in your favor.

here's the inside view, from a banker's perspective:
sadly, though, some banks will deny the application outright if you have a negative record, even if it's settled already. and yes, you would have to really prove it to them.

on the merit that you are already earning more, but since you want to get a car, you'll also be spending more.... which leads the bank to think the past might repeat itself. you're earning more but you're also accumulating more credit.

just my 2cents and to balance the opinions on the form.

**mark_t** · January 13th, 2010 10:28 AM

Originally Posted by probpt

Hi Guys. Just need your opinion on something.

I'm planning to purchase a car in the next couple of months. I've already decided on the make, the color, etc. Here's the thing. I submitted my auto loan application to a bank a couple of days ago. After waiting patiently for an update, the bank rep sent me an SMS informing me that my application was denied because of my credit card problems a couple of years back.

The question is: is there a way I can still get a loan given my present situation? I've worked for a good company and have recently transferred to another company that is giving me better compensation. There is no doubt that I will be able to honor my monthly commitments moving forward.

Thanks!

Don't worry there are a lot of banks who will be willing to serve you.
Bring your business to whom willing. Yes you can still get that loan.