Avoid the specter of your auto loan getting rejected

Apr 3 2010

The financial tsunami which hit the world has left many institutions bleeding and shaken beyond repair. The result is that lenders are extremely choosy about whom they are lending to and are not keen to add to their customer base in a hurry. They are more concerned about getting that confidence back and are in capital protection mode rather than extravagant disbursal of loans which led to the crisis.
With over twenty percent of approvals not going through, as a consumer, it is important for you not to get your auto loan rejected and need to take steps accordingly.
a) As a start, pull up your credit report and scan it carefully for any errors. Report any mistake immediately as these can influence the score.
b) Do not carry too much debt on your balance sheet. Even if you are one of those who is good at your repayment, lenders do look at the debt: income ratio and take it into account when approving loans. The idea is reflect a good track record in repayment of loans taken and a low liability figure so that lenders feel enthused to lend to you.
c) Do not have credit card bills outstanding.

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