Getting rejected by a bad credit car finance can really take a toll on your psyche. Imagine being so broke that even a lousy credit company won’t work with you. But before you start panicking, take a minute to stop, breathe, and reflect. There is a reason as to why the lender rejected your loan.
A reason for everything
There should be a reason as to why you are rejected. It could be because of defaults. The default is often a financial obligation that you have failed to pay. It ranges from simply forgetting to pay your bills last month, to all-out avoiding the payments altogether.
Default has a way of staying hidden until you apply for a loan. That’s the time it decides to rear its ugly head, making it harder for you in the process.
People sometimes forget about their defaults. But there are ones that just hovers above your head for months or even years.
Some of the most common defaults you probably never thought about including your unpaid utility bills. That’s right, the internet bill you neglected to pay for the past few months has finally caught up to you. The same goes for your electric and water bills.
Meanwhile, the bigger ones you tend to look out for often include student, home, and defaults from other banks you probably thought you’ve seen the last of.
If you ever want to be approved for a loan in the future, then you need to work on getting rid of your defaults and clearing all other debts. As this is the only way lenders will even consider you to be eligible for a loan.
Another way around it
As you continue working on paying back your defaults, there is still a way for you to get the vehicle that you want. A car lease is your next best bet.
It’s a great option if you need a new car to drive yourself to work. Another reason to get a leased car is that it gives you plenty of opportunities including upgrading the vehicle by the end of the contract, making sure you drive a newer model car every few years, freeing you from the worry of maintenance.
If you so choose and depending on what you and the dealer agreed to on the contract, you may also have the opportunity to buy the car by the end of the term. A much cheaper way for you to finally own a car and maybe pass it on to your children.