What to do after you have been denied and Auto Loan for Bad Credit
Applying for a loan can be nerve racking, especially when they collect so much information about you and then, they deny you the auto loan because of bad credit. Well now you are stuck! How can you get your car fixed and get back on the road and back to work as quick as possible?
First, don’t stop working, making sure you have enough money to pay your bills and keep on top of your payments is your first priority. Be creative, gets rides from co-workers, have your spouse or partner drop you off, ride the bus, do whatever you can to get to work. And if your boss sees you making this kind of effort, they may just put you up for promotion! Win Win!
Second, find out what aspects of your credit profile caused your loan to be denied. Was it the credit score, was it income, was it debt to income ratio? Once you know the reason, you know whether or not it is a good idea to apply for another loan from somewhere else or if you need to get more creative.
Different companies have different limits on whether or not they will give you a loan. If you find out you were denied because of bad credit, try finding a company that specializes in auto loans for bad credit. 60monthloans, Inc. specializes in this type of loan and only does a soft inquiry to your credit, so you are never negatively affected by applying.
If you get denied twice, by an auto loan company and a company that specializes in bad credit loans, you need to stop applying for loans and find other ways to come up with the money. Applying for any more auto loans will only hurt your credit and you will just keep getting denied over and over again, making it harder to get new credit.
Third, ask different family members or friends if they can help you out. Don’t depend on just one friend or family member, ask around and get as much as you can to get your expenses covered. Make sure you do something of value for your friend or family members that helped you out. You want them to feel good about helping you. Show your appreciation and do something for them. If they want you to pay them back, make sure you do it quickly, so you have a good reputation with them.
Fourth, determine whether or not you actually need to repair this car or if it is a sunk cost, can you get a working car for less than the amount for the repair? Can your insurance cover the repair?
Fifth, offer to do something for your mechanic to pay for the auto repair. Being honest about where you are at and being willing to work to make it better can offer surprising results and solutions for you.
Sixth, start rebuilding your credit, getting a free credit report from annualcreditreport.com can help you see what is going on with your credit and give you some ideas on how to improve it.
Also at the same time, take a good look at your finances, the money that is coming in and your expenses. What can you do to decrease your expenses and increase your income. Is it time to ask for that raise?
Here at 60monthloans, Inc. we want your financial success! We hope you were able to get some ideas on what to do next when being denied for an Auto Loan with Bad Credit. And if you feel like applying with 60monthloans, Inc. is the right next step for you, go ahead and apply!